Skype that connected millions of people around the world was developed by a group of Estonian programmers. Slack Technologies Inc. that is worth over $5 billions set itself on the path to success enlisting the help of outside experts. Popular browser Opera is supported by the developers from more than 25 places across the world.
These companies’ formula for success is placing their bets on the remote staff.
Why not follow their lead?
There are 3 dissenting camps: supporters of outsourcing, followers of outsharing and adherents of the dedicated team.
Umbrella company found out what business model is actually most effective.
Outsourcing is the practice of an organization to contract a part of its internal operations out to outside experts.
Outsource is a high-potential type of business optimization yet it still causes controversy. So before you rush to introduce outsourcing into your business, let’s compare its business benefits and potential risks from the point of view of their productivity
Since the major reason for outsourcing is cost reduction, a pattern emerges that quality is not an outsourcing’s priority. Presented disadvantages and some other smaller issues that you can’t fully control make you think that it’s not worth the trouble at all.
But in the era of economic globalization, we simply can’t be restrained by physical boundaries. So it’s unreasonable to reject such business model completely.
Outsharing is basically an outsourcing’s best case scenario.
In outsharing a side-team is not just a group of anonymous developers but an equal remote partner who is considered to be a full-fledged CTO: they are in the loop on the product roadmap and able to pro-actively propose tech solutions that suit your requirements best.
Outsharing as a business model looks demonstrably more promising than outsourcing, given the fact that the costs are rising proportionally to the level of quality. Nevertheless, some businessmen are not happy with it, maintaining that there is still a lack of control of the development processes.
The Dedicated team is a business model where an outsourced customized team of IT professionals involved in the creation of a specific client’s project.
Umbrella Studio is a perfect example of the dedicated team business model.
In many ways, the dedicated team takes the outsharing ideology to the next level. In the context of the business model, a team of highly skilled experts is formed specifically for your project. This team implements the highly productive engineering solutions that are relevant just for your tasks.
One of the crucial points for a successful project realization is a smooth client-vendor communication.
Control of the project realization and all the aspects of development is exercised directly by the client or by the assigned experienced PM, who was approved by the client himself. The dedicated team provides workflow transparency at all levels.
Pros and cons matching of different business models make it clear what business model is the most effective.
However, the choice of a specific business model depends on your motives and priorities only. You should make your balance between cost and quality clear and on the basis of this very balance you need to choose a partner that can meet your requirements perfectly.
What will you choose?
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