Originally posted on https://narrasoft.com/best-practice-software-development-outsourcing-model-2/
The Intrinsic Value of a Dedicated Virtual Offshore Team versus Project Work
Written by Phil Bartos III
Business leaders today often struggle with exactly how best to leverage the offshore outsourcing model. When seeking to improve their internal software development process, executives recognize the obvious benefits of cost savings, access to new talent pools and labor risk mitigation; but sometimes are not sure whether to build a dedicated full-time team or farm-out projects to different teams, sometimes within different outsourcing companies and even different geographies in multiple time zones. And as you might suspect, the answer to these questions is‘It depends’.
Very simply, if your development needs are not consistent throughout the year if you do not require a continuous need for software development month after monthand if your requirements will never change, then you already know your answerproject work is an ideal solution for your organization. On the other hand, if you require consistent development throughout the yearif you would like work to be ongoing 24/7if you need to significantly reduce costs if you want access to a larger pool of senior talentand if you would like the developers to be professionally managed, then the following will be helpful.
The key to the dedicated virtual team model is the value derived from building and working with a team. The intrinsic benefits of a dedicated team of software developers, as opposed to a shorter-term project include the following:
Some business leaders are reticent to build a dedicated software offshore outsourcing team. And the reasons can usually be reduced to a single yet critical issuetrust. This is a very valid concern. The best way to develop the level of trust you require to take advantage of the offshore outsourcing team model is to simply do your homework and start small. Find a single activity. The activity you identify should be low risk. Suggest a pilot period of 90 or 120 days. This will allow both you and your outsourcing partner to have the opportunity to work together. Through this process trust will inevitably grow and at that time you can then scale your offshore team to the size you require in order to reap the maximum value for your company. Early in my career, at Accenture, I once heard a senior strategy consulting partner advise a group of CEOs to ‘think bigstart smallscale fast’. The software development offshore outsourcing dedicated team model is a very good example where this axiom applies perfectly.
If you have any question or comments, please feel free to contact Phil at firstname.lastname@example.org
Phil Bartos has worked extensively in the management consulting and IT/BPO outsourcing industries for Fortune 500 companies including: Accenture, Computer Sciences Corporation, TELUS and Siemens Corporation. Phil’s experience in the offshore outsourcing industry has included operations in the Philippines, India, Thailand, Russia, Mexico and Mercosur. Phil was an early adopter and pioneer entering the Philippine market in 2003; when it was still a small yet burgeoning offshore geography. In 2009, he launched NarraSoft and today serves as its President and CEO. Phil serves on the board of directors of the NC Museum of Life and Science, a globally renowned institution. He is also an executive advisor to Bright Knight Ventures (brightknightventures.com). Bright Knight Ventures is an innovative shared-risk VC catering to small independent companies and entrepreneurs. He graduated from Baylor University’s Hankamer School of Business with a Bachelor of Business Administration in Management and Marketing.
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