OUTSOURCING vs DEVELOPMENT ONSITE
Today IT is integrated into the lives of almost all businesses from small to huge ones. Small businesses usually use existing solutions on the market, their needs can be characterized as standard and do not require additional flexibility and specific features.
Midsize and large businesses are more demanding. No matter what sphere they are operating in, technological solutions are present in their working process. They need to make a choice to find an outsourcing company or hire developers for their teams.
Outsourcing in IT is a process of hiring a party outside the company for providing development services or maintenance of existing solutions. It means that you as a business owner make a list of the tasks that you need to do, (for example, add changes to your website, implement a new payment method to your website/mobile application, build a mobile application, etc) find a team (software company) that can do that for you by assigning tasks to their employees and on their equipment.
Development on-site is a different story. It means that you as a business owner create a software development department. It means that you need to have at least
- developers responsible for different aspects of the software product creation;
- people responsible for time management, project development planning, resources management, etc.;
- experts who are aware of the latest technologies and the industry’s best solutions.
Those are two main approaches used by businesses, we can also see mixed examples when some part is done onsite and the other one is by a third party. Usually, it is a transit period when more and more tasks appear and as a result, there is a need for a custom software department.
In order to make a choice about what will be the best option for your company you need carefully analyze your needs at a certain point and think of the future direction of the company’s growth. Sometimes it might be difficult to find out what things to focus on and we consider a questionnaire to be a good option to start with.
|OUTSOURCING||no need to have a tech department onsite||less flexibility|
|smaller budget required||higher budget and more employees|
|support in planning and development||project management on your own|
|no additional management required|
|DEVELOPMENT ONSITE||high flexibility||high budget|
|fast implementation of changes||full management and planning onsite|
|ability to introduce changes in the process of development||hiring specialists to the team on your own|
QUESTIONNAIRE FOR CHOOSING SOFTWARE DEVELOPMENT APPROACH
|1. What is your industry?|
|2. Do you provide services, sell goods or produce goods?|
|3. Do you have a website? (specify its type-regular company website – shows info + allows to contact; e-commerce website for selling goods; website for order processing.)|
|4. Do you have a mobile application? Or consider the idea of having one?|
|5. How many employees do you have?|
|6. Do you use any specific software tools to manage your working process on the daily basis?|
|7. Do you need to update/add new information to your public resources weekly?|
|8. Do you produce any equipment that requires software? If yes how many various options of a software product do you need?|
|9. Do you sell services connected to IT/ an IT product itself?|
|10. Do you already have any technical people on your team?|
You may consider the option of having your own IT department if
- you are selling an IT product itself, meaning you work on a software product that you will be selling to other businesses;
- you are an owner of a large business and you have 100+ employees;
- you need to update information and add changes to your websites/mobile applications more than once a week.
Outsourcing and cooperation are an option for you if
- you are an owner of a small or mid-sized business that is operating in various industries from e-commerce to dairy farms and you need technical support for managing your working process and selling your goods/services;
- you are an owner of a large business that does not have any technical people on the team;
- you need to update information on your resources according to the schedule that makes it possible to delegate tasks to a third party.
Those might be the first steps to start your analysis that will show you what approach is applicable to your company. Creating an IT department is a time-consuming task and no one will be able to provide recommendations, you need to be aware of the technical skills you will need and choose new members of the team who will share your vision and values.
If you are looking for an IT partner we have prepared several tips on how to choose a good company.
CHOOSING A SOFTWARE COMPANY
Choosing a software partner is not an easy task, there are multiple factors that you need to take into consideration and of course, you need to trust your intuition.
Check on the working process of the IT company
You need to understand how much you will be involved in, how to track used time and create new tasks.
Learn more about communication
Communication is a key factor, business is about communication. It does not mean that you have to speak the same language, the majority of teams are international, but it means that you need to cooperate, you need to listen, and find solutions that are suitable and convenient for both sides. It is the only pattern that will work and last for years.
Have a look at the portfolio and reviews
Every company has a portfolio and reviews given by customers on some external resources like clutch.co, goodfirms.com, or even google profile. It is a very good opportunity to hear what people say about the company and get to know whether they are satisfied with its services.
Have a quick call before discussing the details
You can be mailing with managers, but the best option is to have a quick call before you start sharing any details it may save you a lot of time. In 2-3 minutes you will understand whether you want or do not want to work with this company.
Business owners have many choices to make every day and software support for their team is one of them. There are two main approaches to consider – outsourcing and software development. The choice is always yours, but you need to analyze the needs of the company and the resources that you have. Development on-site is suitable for big corporations and software service providers, small and midsize businesses should rather have an IT partner that they will have to choose carefully.
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