4 models of IT outsourcing you should know

As more and more companies launch digital transformation programs and build custom software, the demand for skilled developers is higher than ever. But in many regions of the world, building an in-house development team is expensive and time-consuming. That’s why so many businesses are turning to outsourcing opportunities.

Thanks to our outsourced teams, they get to benefit from top talent acquired and managed by providers that specialize in outsourcing IT services.

If you’re wondering whether outsourcing is a good match for your needs, take a look at these 4 outsourcing models and learn more about the benefits they offer.

1. Project-based outsourcing

In this model, you delegate the full responsibility for building an application to the outsourcing provider. You’ll still be one of the key stakeholders in the project and retain some control over it, but it’s the development team that decides how to build your product.

Pros of project-based outsourcing:

  • You don’t have to dedicate any time or energy to manage your project.

When to choose project-based outsourcing?

This model is popular among startup founders who have no technical knowledge or companies with limited technical capabilities that still want to take advantage of the latest technologies to build amazing products or internal tools.

2. IT staff augmentation / team extension

In this model, you hire specialists via an outsourcing provider and then manage them directly. This helps to gain more control over your projects. You can choose from candidate resumes proposed by the agency and check whether they match your requirements — not only in terms of technical skills but also cultural fit.

Pros of IT staff augmentation / team extension:

  • You get talented and skilled experts on a short and long-term basis.

When to choose IT staff augmentation / team extension?

This model is a good choice if you have an in-house development team working on a project and you want to develop a part of it faster. It also comes in handy when you work on a project with an external team and need extra engineers to speed up the process. If project-based outsourcing isn’t a good match for your needs, staff augmentation is a great match — for example, if you’d like to directly communicate with the team and get to know team members to better integrate them with your in-house team.

3. Dedicated team

Companies that need new technical skills can work with outsourcing providers using this model. Dedicated teams are provided on a long-term basis, and team members are chosen carefully to match the project requirements. The dedicated team model works well in projects where the duration and scope might change.

Pros of a dedicated team

  • You get access to top talent from around the world.

When to choose a dedicated team?

This model is a good solution for projects that are large and complex, with scope and timeline likely to change. Hire a dedicated team if you’re not sure what the future project deliverables will be and what their requirements are.

4. IT body leasing

In this model, the vendor finds employees for you. That way, you can take advantage of specialists in a strictly defined timeframe — sometimes even on specific days of the month in case, your in-house team needs an extra boost. In the body leasing model, specialists are hired for you, but they sign a contract with a vendor. It’s the vendor’s job to negotiate the terms of these contracts so that they meet your needs. However, you are still the one to choose the people who will become part of your team.

Pros of IT body leasing:

  • You can focus on mission-critical tasks instead of recruitment.

When to choose IT body leasing?

When you need to quickly find developers with specific technical skills but have no time to invest in recruiting (and still want to have full control of your team).

We hope that this article helps you understand the IT outsourcing options out there and check whether any of them match your current needs.

If you have some more questions, please write to me. We have delivered successful outsourcing projects following various models and have the knowledge and know-how to help your project succeed.

Originally published at https://mobitouch.net.

We are a team of software developers and designers passionate about smart communication.

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