• Access to professionals from all corners of the world
• Focus on big picture
• Speed up hiring process;
• Add flexibility
• Increase efficiency
3 Common IT Outsourcing Models
Before you sign a contract with an information technology outsourcing company, you should choose a cooperation model. While types of IT outsourcing appeal to the geographical location only, the outsourcing business model defines the way you collaborate and the final goals of such a collaboration. Here are 3 most common IT outsourcing models and their pros&cons.
Project-Based Model
How it works: The client hires a team to implement the part of work that is already planned and defined. The project manager from the outsourced team carries full responsibility for the quality and performance of the project.
When to use: The project-based IT outsourcing model is suitable for not complicated projects that have predictable and well-studied functionality.
Pros & Cons of Dedicated Team Model
When to use: Dedicated team, IT outsourcing model, suits best for early-stage startups
that are expected to grow, complex long-term projects, which have the potential to expand,
and projects with many vague requirements. If you want to validate your idea, find a
product-market fit or build an MVP to test the market, the dedicated team is the way to go.
3 Types of IT Outsourcing
1. Onshore
It is a process of hiring professionals that are located in your city or nearby. It’s a good option to keep everything under control within reasonable cost.
2. Nearshore
It is outsourcing in neighboring countries with the same time zone. By choosing this option, it’s easier for you to communicate with developers yet, this option isn’t always profitable.
3. Offshore
It is outsourcing to another country. This type allows you to save up the most.
According to Clutch, 8 in 10 small businesses plan to outsource business functions in 2021. They also highlight that the main purposes for IT outsourcing are:
- Cut costs;
- Grow the company;
- Work with multi-functional experts;
For entrepreneurs, especially startup founders, IT outsourcing can be the key to propelling their business forward faster and save more money than they could with a small in-house team. Big companies like Google, Apple, Facebook also outsource some part of their work as it accesses them to professionals with different expertise.
Outstaff Model
How it works: It’s a type of outsourcing in IT when you don’t need a full-fledged development team and hire separate specialists. Sometimes the project requires finding a couple of additional professionals, and you’re free to hire outstaff workers to cover that scope of work.
When to use: Outstaff IT outsourcing model suits best for short-term projects as there’s a risk your outstaff members may turn over within a long period.
Why You Should Use IT Outsourcing
Now that you know what IT outsourcing is, its models, and types, it’s time to clarify why you need to outsource and whether you really need it. Let’s go over a few situations that suggest when to opt for IT outsourcing.
Pros & Cons of Outstaff Model
TOP-3 Reasons Why You Should
Use IT Outsourcing
You Are A Domain Expert With Idea
If you’re an industry expert with the idea that solves a real problem, IT outsourcing is your choice. In this case, your main goal is to enter the market and test the solution fast. An outsourced team will help you validate the idea, build an MVP to check the hypothesis, and implement changes in your product according to market needs. It saves you money, time and lets you reach the goal.
You Have An Early-Stage Startup
It’s a common case that young startups spend money faster than they get a solid team and a ready-to-market product. The Failory found that financial problems are the 3rd reason why startup fails. So it makes more sense to reduce costs by hiring an outsourced team of professionals while your business lives on investor’s money. You may employ a full-cycle product development studio covering all the blind spots and bringing your product to life.
You Need A Technical Support
Even if you already have a ready solution, but it demands some technical improvements – frameworks for networking, cyber security, backend components, new language, integrations with enterprise app, UX&UI design – it makes more sense to find an experienced partner. There are many functions that IT outsourcing can cover, and again it saves you the time you’d otherwise spend on looking for qualified staff.
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