Almost all the industries across the world have been significantly affected by COVID-19. Businesses are rapidly adjusting as we are all trying to navigate through these unsettled and uncertain times.
The IT Outsourcing Industry is also seeing significant disruptions. Due to travel restrictions in many countries, onsite development is being replaced by remote teams. With modern-day collaboration and project tracking tools, there is no difference between onsite development and remote work anymore. Going forward, this might be the new normal. All that a business needs to do is to make sure that they find a reliable and steady IT outsourcing partner and rethink their strategies on offshore development.
Role of an IT Outsourcing Partner in Setting-Up a Dedicated Team of Software Developers
In order to scale up operations and withstand a high-load of work after the slowdown caused by the pandemic, IT outsourcing vendors can help businesses across industries set up remote teams with expertise in Cloud and DevOps, to migrate solutions to the Cloud and ramp up their infrastructure. In a research paper published by the University of Washington, it has been reported that remote software development teams can save up to 30% on operating costs.
Tech startups or seasoned enterprises are always looking for experienced professionals. Let your IT outsourcing vendor choose individuals and set up a dedicated team for you while you are in a safe spot during a pandemic, and at the same time, you also save on costs. Most IT outsourcing vendors have made sure that they rework their processes and project management techniques as they embrace this new normal. They have made sure that they are using the right tools and their project management processes are collaborative, transparent, and highly effective.
IT outsourcing or setting up an offshore dedicated team is not something new. It has been tried and tested successfully and has been found to be really beneficial, veritably now more than ever. However, there is a difference between outsourcing and setting up a remote dedicated team.
IT Outsourcing vs Setting-Up a Remote Team
In IT outsourcing, IT service providers are contracted to deliver a particular project outcome. The relationship between business and service provider is usually managed through an account-based model. Dedicated remote team members act like an extension of your existing team and are integrated into your company culture and processes. Once remote teams are being set up and running, they are typically managed and controlled by the respective businesses.
In developed countries like the US, UK, and Western Europe, the cost of hiring skilled digital resources is way higher than in developing countries. A dedicated development team sitting remotely in countries like India provides several advantages to an organization.
- Remote teams offer the dependability of an in-house team without the high costs.
- Remote teams offer more cost flexibility.
- Remote teams offer the reliability of an established team without the overheads associated with full-time in-house employees.
- Remote teams can be quickly scaled up or down depending on the requirement.
- It is a lot easier to change or alter the scope of a project with a dedicated remote team compared to outsourcing, where making changes outside of the scope of the pre-agreed terms leads to extra cost.
- Remote teams allow for increased control over processes and communication as they function more or less as a part of the organization.
Post the on-going pandemic, organizations growing more aggressively may find that their in-house team is no longer enough to support the growth. In such situations, outsourcing and dedicated remote teams are both good options to explore.
If you’re ready to explore the benefits of a remote team, take a look at how RapidValue helped one of the largest life insurance companies in the US to set up a dedicated remote team.
How RapidValue Helped a Large Insurance Company Set Up a Dedicated Remote Team
The client is a life insurance company based in New York and is one of the largest life insurance companies in the United States.
They were looking to modernize their insurance platform using technologies like React.Js and Drupal. They found that hiring a dedicated software development team in India would enhance their software development capabilities with experienced, skilled, reliable & professionally dedicated resources at a much lower cost as compared to hiring full-time employees to add to their in-house team in New York for these technologies.
They chose RapidValue to supplement their existing in-house team with a dedicated remote team based in India, skilled in the required technologies. RapidValue set up a 12 member team within a week. The team was a mix of 10 React.Js developers along with one react.js lead and a project manager.
The extended remote team designed the complete front-end of the insurance platform in compliance with the latest UI/UX standards. The team revamped the information architecture to address problems with navigation and user mental models. The remote team ensured that the insurance platform was scalable and consistent across multiple devices such as desktop, tablet, and smartphones.
Once the remote team was set up, the client was given full control of the team. The engagement lasted for seven months till the completion of the project, post which the team was scaled down to three members to provide support.
Setting up a dedicated remote team helped the client improve productivity by 15%. But the larger benefit was in cost-saving. The cost of infrastructure facilities was nil. The overall cost of the project reduced drastically, while at the same time, the speed of delivery increased.
But, these are just some of the prima facie benefits. When you look at the larger picture, the client gained a lot of advantages through this engagement. The team they required was set-up within a week, which research shows would have taken upwards of 45 days to get a similar team together if they had looked to hire in-house. The client had the option to scale-up quickly whenever the project required additional resources. The dedicated team also brought in lacking expertise to the table, and the client had full control of the team like it was their in-house team. Moreover, the dedicated remote development team gave the client’s in-house team the freedom and time to focus on their core business processes.
Welcome to “The New Normal”
A recent study by Upwork projects that by 2028, 73% of all teams worldwide will utilize the remote team model. Now, 73% is a huge number, and that is why remote teams are considered to be the new normal. Remote product development teams are turning out to be highly beneficial for organizations. With the right set of tools, processes, project governance framework, and metrics, these remote teams can provide the same or higher productivity than your in-house teams.
Shuvro Shankha Sarkar
Asst. Manager – Marketing, RapidValue
Learn more about How to Set up a Dedicated Team of Digital Experts.