Traditional project outsourcing and technical staff hiring no longer fit for companies who take great initiatives in applying technical expertise essentials to business growth. It’s no secret that the project outcome would be unforeseen if you completely outsource the project to the nearshore or offshore vendor. Since your offshore team needs time to respond and come up with solutions when an issue occurs in the project commencement period, the communication cost and the overall productivity exert a great impact on your evaluation on your software outsourcing supplier. As a result, most offshore software vendors are always perceived as irresponsive, ineffective and developing products without any quality guaranteed. However, if opting for staff recruitment, the long waiting period, together with high training cost shall yield to the risks in meeting project deadline and guaranteeing project delivery. Weighing pros and cons of the complete outsourcing and the external recruitment in the long term, most companies are more likely to adopt a blended model nowadays, which can make up a ground between the total in-house team and the complete outsourcing. The blended service has a great mixture of onsite project management and offshore developer augmentation. Whilst in-house teams are still performing at the core of project development, smart businesses are reaping the benefits of using staff augmentation services to generate greater value in providing high quality output, better economies of scale and efficient control over cost.
The nature of time zone difference further amplifies the effectiveness of using a blended model of onshore project management and offshore software development. The basic idea is to take advantage of best practice in “follow-the-sun” approach. It means that the globally distributed sub-team will work during their day time and then, hand off the work to a team who is several time zones away. With 2 teams in the overall cycle, in general, 1 team located in the organisation’s time zone and 1 offshore team, the organisations shall be maximizing productivity by increasing the number of hours during a 24-hour day that software is being developed and managed by its 2 teams. The model particularly works for the companies who are under pressure of pushing product to the market and those who have aggressive project deadlines to catch up with. However, this approach requires a solid architecture, mature project delivery model, high quality development and effective team collaboration. Therefore, when selecting the staff augmentation service provider, it’s highly recommended to review vendor’s collaboration model and delivery process.
One of the biggest misconceptions about having a globally project development network is that the offshore team may not be able to fully integrated into the project pipeline due to language barrier, cultural difference and other team dynamics. However, with more globalized engagement creating opportunities for professional development, the developers who are non-native English speakers are making a great effort to improve the English proficiency while trying to embrace the cultural difference when working with different teams worldwide. On the other hand, since Agile, Scrum and XP development methods have been adopted by most experienced staff augmentation service providers these days, the talents from these providers can quickly adapt themselves to the development cycle and accomplish goals with your existing team.
Whether using staff augmentation service helps organisations save cost or not is a long-standing argument. There is no doubt that when hiring onshore freelancers and brining on another full-time employee options are suggested, the biggest advantage, or motivation is the cost. Many companies may easily fall into a perception that the expense of onshore recruitment is manageable. However, the savings is not scalable and they can be quickly lost when the project scope starts expanding. In other words, when you consider the total cost of ownership, rather than hourly cost, using scalable offshore teams is still viable on a per project and product feature basis.
As one of the leading digital solution companies in the UK, Shinetech has rich expertise in digital strategy consulting, mobile app development and bespoke software development. We serve as a reliable IT partner to help our clients achieve their digital transformation. Contact us at +44 20 3170 8428 today to book a free consultation and let us know how we can help you.
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