Software Development Outsourcing Models: Which One to Choose?

Know About the Best Software Development Outsourcing Models in Detail


It is quite a fact that every company is not related to the field of software development. They do not have the privilege to build internal teams to develop any software. However, their need to operate a fully advanced system also doesn’t take any compromise. It has become a core requirement of every organization to have such systems that can manage their different operations. The non-tech companies therefore prefer software outsourcing services to build quality systems. Most of the time, they do not know about the core software development outsourcing models which is indeed an important pillar of outsourcing.

This lack of knowledge often forces them to commit mistakes while outsourcing their company projects. At first, they do not look much bothered after hiring any remote team randomly. But, the cracks do starts to show when the project goes into delay, or meets failure at the very end. This mostly happens due to selecting wrong software outsourcing models. It lets you select the wrong teams that are simply not good enough to understand the given requirements. This silliness not only wastes your time, but also a lot of money in the overall hiring and development process.

Those projects that are very complicated, demand hiring of a specialized team. This can only be done when you have understood the software development outsourcing models pretty well. If you will not, then you could also end up selecting the wrong guys for a very technical project. In this blog, we will discuss about the same topic why choosing a professional team through recommended outsourcing models is quite important.

Let us first start from the basics understanding why software outsourcing is quickly becoming a go-to need for many businesses.

Why Software Outsourcing is Becoming Popular?

Software outsourcing

Software outsourcing is becoming quite popular these days due to a number of reasons. First of all, not many businesses have the privilege to hire internal tech teams. Their distinctive line of operations does not allow them to build a team of developers for one just one project. It naturally becomes costly for them, which is why they do not prefer to go this way. They usually focus on their own domain of operations, as that is their primary method to grab sales from the market.

However, operating with an advanced management system is also a necessity for these companies. They know that the world is rapidly moving towards a digital edge. Hence, there is no point in defying the emerging trend with having anything outdated in the organization. That is where they prefer to go for software outsourcing, as it allows them to build a quality system without hiring any internal team. It reduces their hassle to build and manage anything internally, as most of the time they are busy in their own line of work.

So, software outsourcing provides lot of benefits to those companies that are not ready to build software products internally. It simplifies their job by outsourcing the project to those companies that are skilled and expert in this field. That is how outsourcing works, enabling companies to develop custom solutions as per the needed requirements.

Key Software Development Outsourcing Models to Know About  

If you are planning to outsource your software project to any third-party team, make sure to know about core outsourcing models first. It happens many times with the people that they select wrong teams due to having not enough knowledge about IT project outsourcing. Not just in terms of cost, but these models help you to pick the best teams that can handle all types of complicated projects. 

If you do not know much about the outsourcing models, take a look at the key names given below. These models are usually preferred to hire external teams, as they let you know which type of project should be given to third-party resources. Let’s understand them below.

Staff Augmentation

Staff augmentation

Staff augmentation refers to a strategy in which you hire external resources to upscale internal teams. This is done due to a variety of reasons in which short of talented individuals in the internal setup often looks to be main thing. The process to hire extra people is usually the same, however, sometimes it becomes different when you are hiring for the lead positions. It requires you to be more strategic in terms of questions, as that defines the core requirement for the lead role.

The resources hire through the staff augmentation model can work for both short and long period. It basically depends on the functional requirements of the project, as sometimes many custom solutions are hard to develop. These types of projects usually take a long time, hence having a talented pool of in-house teams can help you to complete them effectively. Similarly, some projects are scaled with the passage of time, so they can also be managed professionally by having a definite set of developers at the work.

In the IT sector, staff augmentation model can help you to hire software programmers, QA specialists, security testers, graphic designers and more other professionals. You can hire them for a long period of time, or for a particular project, it totally depends on your preferences. Meanwhile, also keep in mind that these professionals are specialized, hence they will always come up at a higher rate.

Benefits of Staff Augmentation Model

Staff augmentation model offers a lot of functional benefits. Here are some of them defined below.

  • Staff augmentation allows you to hire teams that fits best to you internal setup. You can always scale them up as per the required needs.
  • The model is very efficient for those organizations who want to develop projects by staying in-house totally.
  • Staff augmentation reduces operational cost, allowing you to manage the extra hired resources efficiently.

Dedicated Software Development Team

dedicated software development

As the name suggests, this model lets you hire a complete team for any particular project. It is mostly preferred by those companies that are looking to completely outsource their projects to a third-party team. They do not want to adjust them internally, as that could disrupt some of their operations. Their idea to keep the project development separate at one place also looks sensible. It helps to dedicate a specific outside team to a particular project when the internal teams are already busy.

Now, to hire a dedicated software development team, you have to follow some specific steps. It is not like hiring a usual internal developer having a normal set of skills. The dedicated teams are usually hired to perform specialized tasks, hence you must also need expert level skills in them. A lot of times, companies do hire dedicated teams without asking technical questions. This creates problems for them at the later stages when those teams do not offer the results that were required from them.

So, it is recommended to hire dedicated software teams after fully analyzing their skillset. Most importantly, you have to analyze whether they have the expertise to handle a relevant project or not. This could be made sure by looking into their experience, as well as the projects that have been earlier completed. This will let you know about their capabilities as a dedicated team in the field of custom software development very well.

Benefits of Dedicated Software Development

There are many advantages of choosing dedicated software development. Let’s take a look at some of them below.

  • Dedicated teams precisely focus on your given projects and you can always expect quality results from them.
  • By hiring specific dedicated resources, you can easily do project allotment without creating any disturbance within the internal setup.
  • The communication with the dedicated team always remains very good. They give you regular feedback about the project, so that you can keep track of the current status.

Project Based Outsourcing

Project based outsourcing

The outsourcing model that is vastly followed and used by many companies is project based outsourcing. It is different from the two practices defined above, both in terms of time duration and software development cost. This model is precisely taken when companies are required to complete one project at a time. They do not want to work on a project for a long period of time, hence they opt for a specialized team to start and complete the project within a given timeframe.

The team hired for a project is specifically selected after analyzing the required skills. Mostly, experienced professionals are preferred in this case because they have got the required expertise to handle complicated projects efficiently. They can use their experience to understand every requirement and come up with the right thing that is demanded from the clients. 

By opting for project based outsourcing, your teams will commit a defined deadline for the project. They will make sure to complete the project with the required features before the given time period. It will now depend on them to manage their internal resources and complete the project as decided in the meetings. As a client, you only have to ask them for deliverables at the given date. Though, by some mutual consultation, this deadline can also be changed if any roadblock comes unexpected during the development. That is how project outsourcing model works, ensuring you to provide the quality software product at the end. 

Benefits of Project Based Outsourcing

Project based outsourcing can help you in many different ways. Let’s take a look at some of them below.

  • Project based outsourcing helps companies to know about the completion timeline at the start of the project.
  • By picking project based outsourcing, you pick specialized teams that can handle all types of complicated tasks.
  • Project based outsourcing always ensure quality in the deliverables no matter how difficult the development process is.

Final Words

That takes us to the end of this blog in which we have discussed various types of software outsourcing models in detail. It is quite important to understand the differences between them, as they could prove to be very vital while selecting the external teams. A lot of times, companies only fail to onboard quality external teams due to having lesser outsourcing knowledge. It is therefore recommended to first understand the software development outsourcing models completely, so that you can select the best teams as per the requirements of the project.

Meanwhile, if you are looking for an outsourcing company that can help you create advanced software applications, get in touch with us today. We can assist you to develop state-of-the-art software systems, rightly as per the needed demands.

Frequently Asked Questions (FAQs) 

What is software outsourcing?

Software outsourcing is a method with which you allot internal software projects to any external team. It is opted when in-house teams are already busy and you still have to complete certain projects. This is where software outsourcing comes into play, allowing you to hire extra resources efficiently.

Why software outsourcing is quickly becoming important?

Software outsourcing is quickly gaining a lot of attention in the market. It helps non-technical businesses to develop advanced software systems by hiring quality external resources. All of this is done without increasing the operational cost, in fact the overall development budget is quite affordable in this model.

How many software development outsourcing models are there?

There are different types of software development outsourcing models used in the industry. Going by the name, staff augmentation, dedicated development and project based outsourcing are more popular in the market.

Which software outsourcing model is best for startups?

Depending on the project type and deadline, startups need to select a model that can give them the required results. Ideally, project based outsourcing can help them in this regard, however, hiring dedicated teams could also prove to be a good pick.