Internal IT Department vs. Outsourcing: How Managed Outsourcing Is Changing the World

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As businesses grow, the need for custom software solutions arises to enable scalability, enter new markets, or streamline processes for enhanced efficiency. This decision often presents a dilemma: whether to establish an in-house IT department or seek outsourced software development

While building an internal team may seem reliable, it is often expensive and time-consuming, especially without technical expertise. On the other hand, outsourcing can be quicker but may lead to unreliable vendors with little vested interest in the business. 

In this article, we explore a third option – partnership, offering a predictable and cost-effective approach to achieving the desired results.

Strategic Collaboration: The Key to Winning the Business Marathon

Building an in-house IT department takes time, and outsourcing might not guarantee a deep understanding of your business. 

The ideal solution lies in seeking reliable IT companies who share a vested interest in your product’s success, ensuring maximum effort and impactful results. Choosing trustworthy long-term collaborators who can perform outsourced software development becomes imperative for mutual growth and sustainable achievements.

The Financial Advantage: How IT Partnerships Can Maximize Returns and Incentives

Software development solution can be a costly endeavor, with skilled personnel demanding significant funds. However, collaborating with outsourced software development services offers various benefits beyond immediate monetary compensation. These include equity in the company, commission from product sales, referral bonuses, long-term contracts, partner discounts, and the exchange of expertise. 

By prioritizing enduring relationships over short-term gains, software outsourcing with reliable IT companies prove to be a strategic and cost-effective approach to propel your business towards success. Explore the numerous opportunities for mutual growth and lasting achievements in this rewarding partnership journey.

Agile Scrum: Solving the Financial Conundrum in IT Development

Controlling development budgets and making expenses predictable can be challenging.Often, initial estimates for product development, say $50,000 and 3 months, go awry due to unforeseen delivery issues or changing priorities.

The solution lies in adopting the Scrum methodology. By developing products in small iterations called sprints, planning is limited to 1-2 sprints ahead. While Scrum proves effective for many IT companies, it doesn’t address financial concerns. Paying the whole team’s rate and increasing costs with additional specialists can become problematic, leading businesses to lose money.

At OmiSoft, we employ a bundled development model, where depending on the package price, we provide a specific amount of resources that can be adjusted as needed at each stage of product development.

Here’s an example of a bundled solution for WordPress website support from the OmiSoft team:

 

Support Maintenance Part-time Full-time
Hours / week 16 40 80 160
Contract duration >1m >1m >1m >1m
Response time 2 business days 2 business days 1 business days 2 business hours
Project Manager + + + +
QA + + + +
Pricing 500 1250 2500 5000

Or our bundled solutions for custom development:

Support Maintenance 1 full time dev 2 full time devs
Hours / week 40 80 160 320
Contract duration >1m >1m >1m >1m
Response time 2 business days 1 business day 2 business hours 2 business hours
Project Manager + + + +
QA + + + +
Pricing 1500 2500 5000 10000

In this model, depending on the project’s development stage, the team composition can change. For example, at the beginning, more time may be allocated to business analysts and architects, and later, their involvement decreases as engineers take over. 

Additionally, any unused team hours are accumulated and carried over to the following month, ensuring efficient resource utilization.

Sum Up

To successfully build IT solutions, a reliable outsourced software development team and predictable collaboration are essential. The key idea of bundled outsourcing is to subscribe and receive end-to-end IT solutions tailored to your budget, with the flexibility to allocate necessary specialists within the package. Whether you’re planning new development or facing support challenges with an existing product, reach out to us, and we’ll gladly help alleviate your pain points.

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