Which IT Outsourcing Models Should You Consider In 2021?

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IT teams can be outsourced based on on-shore, near-shore, or off-shore development; outsourcing can often be classified based on popular models, let’s find out!

IT Outsourcing seemed like a saviour in case of frequent absenteeism on part of in-house teams earlier, but it has become an inseparable trend across the continents now, assisting businesses in reducing some cost, making them access the best available IT talent and high-speed production. From just being a software outsourcing company or an agency for developers hiring, organizations even step forward to become a full strategic partner to aim at a long-term partnership, aligning their business and sharing risks.

Outsourcing a development team can help businesses out in multiple ways – it brings down the development cost, it pulls the companies from bind and makes the work going, it helps companies choose from multi-skilled people, they get to suggest the technology, time-zones can be managed, communication challenges can be taken care-off and all the quality parameters can be sorted before project delivery.

What trends in IT Outsourcing will shape in 2021?

Organizations have to deal with difficult technology solutions like chat-bots, cloud delivery, digital signage, information systems, on-demand delivery solutions, access control systems, touch-less information access systems, screening systems, digital certificates, credentials, audio-visual equipment, content management systems and likewise. Businesses can plan to progress their development tasks even with less manpower and on a limited budget.

Projects outsourcing companies are benefitted as the dearth of skilled developers is filled in with adequate supply on-demand. Organizations can choose from a list of outsourcing companies in India to patch up the required skill or technology gaps.

What does this suggest about the upcoming trends in the outsourcing industry?

Businesses should think of outsourcing if they are looking to innovate, or in case of scarcity of skilled developers, to reduce cost, willingness to increase work flexibility, to create internal structures, plus, if they do not wish to micromanage things and additionally if there is a need to transfer key employees to strategic business areas. Upcoming IT outsourcing trends include:

  • Businesses will rely more and subsequently spend more on outsourcing.
  • There can be more than one outsourcing partner at one point in time
  • Blockchain developers will be in high demand
  • Cloud sourcing, business process automation, cyber-security, Progressive Web Apps, artificial intelligence, will be high in demand.

What are the popular outsourcing models?

There are three most popular outsourcing models:

  • Digital Outsourcing Model

Humans did get affected by the recent pandemic but the technology remained intact. With the receding percentage of cases, businesses are facing a surge in demand. In-house developers are made to shake hands with outsourced counterparts to secure unforeseen development needs. Startups – small businesses – medium and large-sized enterprises all are making use of digital outsourcing models. This helps in reducing human effort and making ubiquitous use of technologies to take over several forms of work. Emerging technologies such as cloud computing and visualization will allow maximal utilization of cloud infrastructure.

  • Standardized Service Model

Unprecedented times during and post Covid-19 has left businesses wondering and reminiscing about their survival strategy. Whether you are a start-up, heading a large enterprise or leading a part of a bigger company, it is important to sustain your business into the future to achieve an impact.  Building innovation skills and mindset in-house is a gradual process, but what if the same can be outsourced, then, to fare better for the current scenario and outshine the competitors? Practicing innovation skills in-house at a smaller scale, starting from a smaller division – a smaller business unit – or a smaller team can help understand how the team will contribute to the overall organizational portfolio. It could rather be today’s cash converted into tomorrow’s innovation. This could often translate into higher standardization service prices, so a mix of custom services to adjust the project needs can be considered. Often companies outsourcing IT services look for quick digital solutions for their business, an introduction to standardization services can make your project market-ready at a lower development cost within a short timeline. It should be noted that custom solutions can often be expensive than standardized services, therefore later is suitable for smaller businesses or start-ups.

  • Agile IT Outsourcing Model

The entire development process can be divided into small chunks and priced in small parts. Every deliverable is worthy of discussion. Every small module needs to succeed and pass the regression test before proceeding towards integration and system testing. Following agile programming, the model approach can help in saving time as small errors can be rectified at the initial stages before being built as a whole. This helps outsourced developers in effectively communicating the challenges (if any) that they face during the entire development process. This also helps in reducing the overhead cost and timely delivery. Remote agile teams are more productive and can get work done faster. Businesses need to set their development priorities right

Other Types of Outsourcing Models

Often, IT Outsourcing Models can be classified as:

  • Staff Augmentation Model – In-house development team’s work in coordination with some outsourced developers for a predetermined or adhoc time (might be at a distant location). They work for dedicated 8 hours plus additional hours (if required).
  • Managed/Dedicated Team – A team of outsourced developers reports directly to the project manager or the client. A fully dedicated team of outsourced developers will consist of the Business analyst, UI/UX designer, QA engineer, 1-2 iOS developers, 1-2 Android developers, Back-end developers, and DevOps. They work for dedicated 8 hours plus additional hours (if required).
  • Project-Based Model – Outsourcing service companies can be hired by a business to handle every step in the process of their project from planning to release. They get paid based on the number of hours required to complete the process plus the fixed hourly price. Or the number of hours required to complete the project scope plus the hourly rate. (or the intersection between the two)

Conclusive: Why should you outsource our developers?

We abide by Government’s IT outsourcing policies – IT Act 2000, India Contract Act 1872, Foreign Exchange Regulations, and Specific Relief Act 1963 (SRA), Companies Act 2013, Intellectual Property Laws, and FTDR 1992. We are committed to our stakeholders and clients and are amongst the top outsourcing companies in India. We promise clear timelines and outcomes, minimal time commitment. Businesses trust us for documenting project requirements, specifications, right through execution and delivery. Hire dedicated developers from us to expand your in-house team, bringing in the required productivity-skills-accuracy, if you want a helping hand or if your in-house team is busy with the core product.

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About Author
Vipin Jain

Vipin Jain

Vipin Jain is the Co-Founder and CEO at Konstant Infosolutions and is in charge of marketing, project management, administration and R&D at the company. With his marketing background, Vipin Jain has developed and honed the company’s vision, corporate structure & initiatives and its goals, and brought the company into the current era of success.

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