The software development market is changing rapidly every year. New trends and technologies are emerging. Also, the ways of cooperation between customers and performers are changing. For example, hiring a dedicated software team has become one of the most common practices. Some analysts predict an increase in the share of boxed software relative to the share of custom-made software, from a 1: 1 ratio to a 2: 1 ratio. The number of users choosing free software (Open source) will increase.
What you need to know about outsourcing?
Classic outsourcing is the development of software products from scratch for the specific needs of customers, continues to conquer the market. Although in some areas, it is wiser to agree to a decrease in functionality and purchase ready-made proven software, which, moreover, can be bought in instalments. There is also an outstaffing option, but in general we do not recommend it. In some cases, this may be justified. But in most cases, intermediaries make money on outstaffing. Performers receive less money, customers, on the contrary, overpay, while not receiving proper quality guarantees. You can learn more about ways to manage projects here https://8allocate.com/managed-projects/.
The realities of IT business
The largest decline was recorded at the beginning of the year in projects with high hourly wages, while projects with low prices were practically not affected. Among the clients of outsourcing teams, companies began to appear that had never previously used outsourcing. As our potential projects, we also see unfinished projects that have been suspended due to budget cuts, but which are critically needed by customers.
Good business management concept
Small companies suffer the most from the crisis, for which the closure of the project may turn into the closure of the entire business. In addition, for small companies, the share of costs is higher than for large companies due to the effect of scaling. In addition, in most of these firms, the manager is the project manager, the supply manager, the financier, and the head of the personnel department at the same time. The non-production load is more than 70% of his working time, which affects the efficiency of the enterprise as a whole. For delegation purposes, outsource professional teams must be hired.
The software development industry and its patterns
If from the point of view of mathematics, the expression 100 + 100 = 300 looks absurd, then it is precisely in the field of software development that this is possible, when two hundred programmers are able to complete the amount of work for three hundred or more people. An increase in labour productivity is achieved due to the following features in the system of labour organization:
- High motivation of the team manager to do more work with less costs is stimulated by the rules of cost accounting, he can personally control and manage the work of a team of 20-30 people;
- Reducing unit costs is achieved through the use of common services;
- Availability of developments of one team for other teams in order to move forward faster without reinventing the wheel;
- Possibility of narrow specialization in the general system of division of labour;
- No need to maintain redundant resources due to the system of internal outsourcing between teams;
- System of continuous professional development of personnel in the direction of market needs, desires and human capabilities;
- Managed staff migration allows you to get the most out of each employee while maintaining the interests of the team that raised him;
- Uniform standards of production processes and quality control within a dedicated software team.
