November 9, 2021
Due to the shortage of technology personnel, software development projects are generating as many opportunities as headaches for organizations. We know that the efforts to find the teams you need are being excessive and sometimes unsuccessful. That's why today we present the agile alternatives for you to make that digital transformation idea that your company needs so badly a reality. Based on the key findings that Gartner found in its recent 2020 - 2022 Emerging Technology for Enterprises, we have compiled for you some best practices and recommendations to show you the advantages of outsourcing alternatives to find the right software development team for your needs.
The technology companies that will find success in the years to come are those that, before investing in support and maintenance of their operations, first have their need for appropriate talent covered. Don't put off the issue of technology staffing shortages until tomorrow, because the first step to achieving real goals is to have the right team in place.
According to the Gartner study, it was found that the lack of the right technology talent represents almost 64% of the reasons why organizations are facing a barrier to digital adoption. If we add to this the fact that the need for transformation and change of companies around the world is skyrocketing, we are left with an ultra-saturated market with few options that, being so scarce, represent a gigantic acquisition cost.
For your organization not to be left disabled while waiting for a team to become available, first you need to know exactly what type of team you need. Do you have an AI project for heat recognition at events? Do you need expert advice to get on track with debugging and easy access to your databases? Do you plan to develop a personal finance management app for mobile devices? Identify what type of technology staff you need first based on the nature of your project.
For example, in the case of the idea of AI for heat recognition at event gauges, start by noting the project manager, a senior AI developer, technical experts in thermal sensors, a Java programmer for the system to store data and learn from it through use in different types of events, etc... Your duty is to be as thorough from the beginning to know exactly what kind of roles and positions will make up your ideal team of tech talent.
This is how we arrive at today's first recommendation-mantra of the day: if the cost is high and the talent is not specialized, it is better to look elsewhere. Today's businesses are not able to overpay for professionals who must invest time in training to be qualified to work on your projects. One of the main advantages of global hyper connection is that it has opened endless opportunities for both companies and technology personnel.
The solution to the lack of technological talent lies in this hyper connection and it is called Outsourcing. Yes, we know it may sound obvious at first, but surely you do not know in detail the types of Outsourcing for software development that are on the market, their advantages, their strengths and all the potential they present in terms of maximizing resources, process agility and scalability of systems. Below, we present the agile alternatives in technology in the face of the lack of trained (or available) talent in the market today. Analyze well each outsourcing modality and, according to the detailed work you do to detect the pieces that articulate your work team, choose the one that best suits your needs. Keep your focus on the vision of your project and find the points that connect with it.
The Outsourcing market in technology is being governed by three specific modalities nowadays. We are talking about Onshore, Offshore and Nearshore, alternatives that have their advantages and disadvantages and that we will analyze in detail for you.
The outsourcing model called Onshore is in which an organization contracts services to develop its projects in its own country. It is the most common modality in all types of markets, as well as the most expensive.
The Onshore outsourcing alternative is the closest to you, since you are working with a company that is in your country or even city. The advantage of Onshore is that you are working with highly qualified software professionals who have the same cultural approach as you. However, this option comes with the highest cost tag. Onshore companies often don't have the right talent available immediately because they can't afford to keep workers free. So, when hiring an Onshore company, you need to consider the time it takes to source, hire, and train the tech talent your company needs.
The offshore outsourcing model consists of contracting services from companies located in a completely different part of the world from the country of origin. It is the most economical form of outsourcing, but at the same time the one with the most risks and limitations.
Offshore usually refers to working with teams in countries such as India, China, Ireland, or other European countries. While the cost of working with offshore companies or developers cannot be beaten, there are some drawbacks that you should consider before making the decision based on the cost per hour of work.
Having your development team on the other side of the world, sometimes not speaking your language, and operating in a completely different time zone, makes communication and goal alignment much more difficult. As you may well know, communication and interaction between teams is as important to quality software development as is technical knowledge and experience. Being twelve hours away simply complicates any kind of communication no matter how skilled and inexpensive the tech talent there is.
In addition, extended response times and lack of communication due to language barriers and cultural differences can end up driving up costs again, as tweaking, and readjusting days later and through poor communication can stall the project and cause stress on the entire team due to the review and adjustment processes. However, if ultimately the lower hourly rate is your priority, the offshore alternative is likely to be the best option for your company.
The outsourcing model called Nearshore is where your company acquires the software development service performed by a specialized team in a country close to yours that has a similar time zone.
Nearshore works the same as Offshore, except that your company is aligned with professionals who work in time zones very similar to yours and are in close geographic proximity. This makes communication much easier, and the cultural imprint is almost the same. This modality also allows for quicker and more frequent face-to-face visits to your organization (if necessary). Furthermore, compared to the Onshore modality, Nearshore offers considerable cost savings without altering the quality of the project's results.
Its main disadvantage is that in the end Nearshore cannot compete with the hourly rates of the Offshore companies, since as we have already mentioned, this is the lowest cost modality in the market. However, the convenience of being in the same time zone (or a similar one) and having shorter travel times for face-to-face visits not only reduces costs but also stress for you and your company, not to mention that you will have an immediate response capacity and the security of having your team always available when you need them.
If you have enough time for an Onshore provider to find, hire and train the professionals you need and enough resources to pay for the whole process, Onshore is the Outsourcing modality you need. If, on the other hand, you are short of budget and you are willing to not have control of the project to reduce costs, considering that you will have little or no response capacity, your ideal Outsourcing modality is Offshore. Finally, if what you need is a customized team of professionals, who work alongside you, provide you with a high response capacity and offer you services at an economical cost, Nearshore is your ideal Outsourcing modality.
At DreamCode we are experts in Nearshore software development for the Americas. We have more than 10 years of experience bringing to reality the projects and ideas of adoption, growth and digital transformation of organizations across the continent. Our expert teams in AI, technology consulting, software development, database services, app development for mobile devices and much more handle efficient and results-based methodologies.
Find in DreamCode the partner that speaks your language, masters the fields of expertise needed to make your ideas a reality and works in real time with you, as if they were just a few offices away. All this without having to pay a fortune for highly qualified professionals or very little for professionals with low availability and no agile response.
Meet here our entire portfolio of services and solve once and for all the problem of the shortage of technological talent in your organization. Our professionals will listen to your needs and offer you their experience to build together the action plan that will drive your organization towards a successful and innovative future.