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Software Outsourcing or Delivery Teams: What’s Best for Your Company?

Innovation On-Time and On-Budget One of the most difficult aspects of being a manager in the modern-day business world is staying abreast of recent technologies...

Damian Scalerandi

By Damian Scalerandi

SVP of Professional Services Damian Scalerandi leads every step of IT project delivery with multi-cutural teams to help accomplish client goals.

10 min read

Group of people discussing Software Outsourcing and Delivery Teams

Innovation On-Time and On-Budget

One of the most difficult aspects of being a manager in the modern-day business world is staying abreast of recent technologies and ensuring that your company is prepared to remain profitable well into the future. Businesses of all sizes are beginning to rely on software more and more as one of their primary revenue generators, and successful executives have turned to software outsourcing firms to help them fill their internal weaknesses and develop new products on-time and on-budget. Two of the main outsourcing models in use today are software outsourcing and delivery teams. This article will explore the pros and cons of the two models to help you choose the best option for your business.


Software Outsourcing

Project outsourcing is one of the most popular outsourcing models used in the technology services industry. This setup is perfect for both small and large businesses alike and it is well-regarded because it allows companies to develop well-executed, custom software without the need for an extensive permanent staff. Just as importantly, outsourcing development frees management to focus on their core responsibilities and the company’s long-term growth, rather than getting bogged down in the details.

Software outsourcing of this sort typically takes one of two forms. Businesses with experienced in-house software engineers may handle the bulk of a development project on their own, turning to software outsourcing services for their expertise only during certain portions of the process. The quality assurance and testing portions of the development cycle, in particular, require skill-sets that are not normally found in in-house programmers. In addition, companies without the resources or desire to build out a large, permanent development team often turn to autonomous delivery teams to bring software to market without placing an enormous burden on managers.



Reduced Executive Responsibilities

One of the reasons that software outsourcing companies have become such an important resource is because of their ability to reduce manager workloads while providing the type of valuable, regular updates that make hands-off supervision possible. The project managers found on these autonomous teams have years of leadership experience and are prepared to react quickly and efficiently when the inevitable challenge appears. When assessing potential outsourcing partners, make sure that they have a solid plan in place to communicate regular updates, as well as to solicit stakeholder and end-user feedback throughout the process.

Long-term Flexibility

Software outsourcing offers companies of all sizes the type of long-term flexibility needed to remain successful in this competitive economy. In the past, businesses typically started major software development projects by sourcing and hiring a large staff of skilled software engineers. However, such an approach left businesses saddled with long-term employment commitments to programmers whose skills may no longer be needed once development is completed. Software outsourcing eliminates this problem by ensuring that contractors are only hired for the hours that they are truly needed. This leaves companies with a lean and flexible staff in the crucial stages after software is brought to market.



Finding a Quality Outsourcing Partner

The main challenge associated with outsourcing major aspects of a software development project is finding a quality outsourcing partner to work with. This sort of extensive relationship offers a wide array of benefits, but working with a poor outsourcing service can lead to cost overruns, missed deadlines, and a buggy final product. The best way to ensure a positive experience is to perform due diligence during the search for an outsourcing partner. Important indicators like their industry reputation, online presence, and past experience can help you make the best decision for your company.


Delivery Teams

Delivery Teams allow companies to grow comfortably by providing experienced contractors that will monitor the business’s technology needs, proactively suggest improvements, and respond immediately to emergencies as they arise. This type of outsourcing involves hiring a long-term extended team comprised of experienced software engineers that can monitor your company’s technology, handle network support, and resolve day-to-day tech issues. This system can reduce your managers’ supervisory burden, help your business grow quickly, and ensure that sensitive data remains secure.



Focus on Core Business

The most important benefit derived from outsourced Delivery Teams is the fact that executives can be freed from the day-to-day project management responsibilities required from a major software development project. Rather than spending their days communicating with various team members, worrying about deadlines and cost overruns, and putting out fires, senior management can focus on their company’s core business–ensuring that current customers remain happy and that the firm’s long-term outlook remains strong. This benefit is just as important to in-house software engineers as well since Delivery Teams will allow them to focus on maintaining and improving current software and brainstorm future projects that might help the company grow.



Working for years to develop a product and cultivate a customer base is hard work, so it’s only natural for executives to rejoice when their company final begins to get traction and turn a profit. The business can now move beyond its startup stage and grow into an established company. However, this exciting period of growth brings a whole raft of challenges–chief among them is the need to scale the company’s IT staff and to handle your company’s new and more complex technology needs. Delivery teams help companies grow by quickly deploying additional, experienced staff members as soon as they are needed.


Improved Software Security

The importance of ensuring software security cannot be overstated. 2018 was the worst year on record for data breaches in the technology industry and the trend is likely to get worse in 2019 and 2020. Malicious computer attacks increased by 32% in 2018 over the previous year and billions of consumers saw their sensitive data compromised. One of the ways in which companies are reacting to this disturbing trend is to hire outsourced software engineers with valuable experience in cyber-security and data protection. Delivery Teams ensure that companies have a qualified and passionate security-oriented person guarding their networks at all times.



Local Presence

One of the most frequently cited challenges associated with hiring a software service provider is the fact that day-to-day IT services require constant communication. When companies select an outsourcing partner located in Asia, for example, real-time interaction can be nearly-impossible since American workers are typically in the office when their Asian counterparts are preparing for bed. The best way to solve this challenge is to work with a partner located in the Western Hemisphere, which ensures that the outsourced engineers and the in-house team will be active at the same time, making instant communication, over the phone or through a messaging application, simple.


Next Steps

Whether you are looking to launch your next big software development project, or simply need a reliable team of software engineers that your business can rely on to keep your technology up-to-date and your users happy, software outsourcing may be the best option for your company. In-depth project outsourcing is a wonderful option for managers who are interested in developing new products without the need for major oversight–allowing them to focus on their business’s core goals. On the other hand, outsourced managed services allow companies to operate securely knowing that their technical systems are being monitored by experienced developers for performance and security every day.

Reach out to a top software development service today to find a custom solution for your technology needs and to enter the next stage of your company’s growth. BairesDev has been recognized as a top California Web Design Company on DesignRush.

Damian Scalerandi

By Damian Scalerandi

Damian Scalerandi is SVP of Professional Services at BairesDev. Damian leads every step of IT projects from design through project delivery. His 10+ years of experience in the tech field helps him lead globally diverse teams on large-scale tech projects.

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