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What is essential to building a successful product? Having the right team in place. However, assembling such a team is often easier said than done, especially in a global market where the demand for skilled developers frequently exceeds supply. Giants like Google, Apple, and IBM compete for top talent, leaving smaller companies and startups to vie for what remains.
The challenges don’t end with recruitment. Once a team is in place, managing processes, scaling effectively, and ensuring that the product is delivered on time and within budget can be daunting. This is particularly true in an environment where technology evolves rapidly, and businesses must remain agile and competitive. Many companies face a critical question: how do you build a high-performing development team without being slowed down by time-consuming hiring processes or skyrocketing costs?
The answer lies in outsourcing. By outsourcing development needs, companies can access a global pool of experienced professionals, avoiding lengthy recruitment cycles, overhead costs, and administrative headaches. With the right outsourcing partner, you can quickly scale your development team, reduce costs, and focus on the big picture — building and launching your product.
The secret to a successful outsourcing partnership lies in identifying which aspects of your business can benefit most from outsourcing and selecting a partner who offers the ideal balance of capabilities and cultural alignment for your organization.
Reasons why companies choose outsourcing
Companies often turn to outsourcing for several strategic reasons that allow them to remain competitive, efficient, and focused on their core operations.
Here are some key reasons:
- Meeting Project Deadlines
Outsourcing provides companies access to external teams who can help meet tight project deadlines. By leveraging experienced professionals and specialists from outsourcing firms, businesses can accelerate project timelines, ensuring timely delivery without overstretching their in-house team. This is particularly crucial for companies with fluctuating workloads or short-term projects. - Filling Gaps in In-House Expertise
Many companies may need more expertise for certain projects but have no intention of hiring full-time specialists for temporary needs. Outsourcing offers a flexible way to bring in expert knowledge and skill sets that are unavailable in-house. This approach allows companies to engage with professionals who specialize in the required fields, such as software development, data analysis, or digital marketing, without the long-term commitment of hiring new employees. - Cost Reduction
Outsourcing offers significant cost savings by reducing expenses for salaries, infrastructure, and equipment. It allows businesses to convert fixed costs into variable ones, scaling operations as needed.
A key factor in these savings is economies of scale. For example, managing a large company’s IT infrastructure requires diverse, specialized skills that are costly to hire and maintain. An outsourcing provider can supply these skills at a fixed cost, scaling staff as needed, and leveraging bulk purchasing to secure better deals on equipment. Additionally, their staff often work on multiple accounts, reducing overall costs for the company. This makes outsourcing cost-effective while maintaining access to a broader skill set.
Common challenges and risks
Cultural vectors
According to a study conducted by the Economist Intelligence Unit, “cultural differences” and “intercultural communication” are some of the most frequent answers that multinational companies give when asked about the difficulties they face in cross-border collaborations.
Management theorists over the years have broadly divided organizational culture into categories. One such theory is the Competing Values Framework, developed by Cameron and Quinn, which defines organizational culture into four categories: Hierarchy, Clan, Adhocracy, and Market-driven.
- Hierarchies are old, large, and regulated organizations that provide a relatively stable working environment.
- Adhocracy is the term coined to describe highly organic unordered organisations – the opposite of a hierarchy.
- Clan culture values cohesiveness, participation, and teamwork.
- A market-driven culture tends to emphasize competitiveness and the value of high achievers or notable achievements.
Successful outsourcing cooperation is most effective when there is a cultural fit and shared values. Since culture is a dynamic process influenced by numerous factors – such as changes in management, new strategies, and the business climate – it is also a moving target.
Cultural affinity is achieved when both parties align on the same cultural trajectory – starting from a similar cultural base and moving toward the same new cultural goal. For example, they may transition towards an adhocracy or market-oriented approach. Ideally, the outsourcing partner should be ahead of the client on this cultural vector, allowing the client to be pulled towards their cultural goal rather than regressing to their starting point. The specific starting and target cultures of the participants are less important; what truly matters is that both parties share the same cultural direction.
Cultural Barriers
Cultural barriers arise from deep-seated differences in how individuals from various backgrounds perceive and interact with the world. These barriers go beyond workplace culture, touching on broader societal norms such as power dynamics, individualism versus collectivism, attitudes toward uncertainty, and communication styles. When not managed effectively, these differences can lead to misunderstandings, mistrust, and conflict.
Key areas include:
- Communication Styles
High-context cultures (e.g., Asia, Middle East) use implicit communication, while low-context cultures (e.g., U.S., Germany) prefer direct, explicit language. This can lead to misinterpretation. - Power Dynamics
High power distance cultures (e.g., Japan, Mexico) respect hierarchy and authority, whereas low power distance cultures (e.g., Scandinavia) value equality and open dialogue. This divergence affects leadership and decision-making. - Individualism vs. Collectivism
Individualistic cultures (e.g., the U.S.) prioritize personal achievement, while collectivist cultures (e.g., China) emphasize group harmony. This affects teamwork and conflict resolution approaches.
To overcome cultural barriers, organizations must provide comprehensive training that addresses intercultural communication, power dynamics, and societal norms. This includes learning to recognize nonverbal cues, understanding diverse conflict resolution styles, and fostering cultural empathy. Encouraging open dialogue about cultural differences and promoting cultural sensitivity is crucial for building trust and mutual respect within diverse teams.
Offshoring
In software outsourcing, two main models exist: nearshore and offshore. The choice between near- and offshore outsourcing depends on your project’s specific needs and priorities.
Nearshoring offers advantages such as easier communication and cultural similarities, though it may come with higher costs and a more limited talent pool. Offshoring provides significant cost savings and access to a larger talent pool but may pose challenges such as communication barriers, increased project management demands, and potential quality control concerns.
Nearshore and offshore outsourcing offer distinct advantages and disadvantages. The key to success lies in choosing the model that best complements your project needs and company culture.
Quality
Any company’s primary objective is to acquire functional, high-quality software products backed by exceptional service. However, a common challenge is the uncertainty of outcomes when partnering with a new vendor.
Importantly, cost-cutting techniques such as employing a cheap development team with little to no expertise and attempts to save on development time might backfire if the result is unacceptable, potentially necessitating starting anew with another vendor.
To mitigate these risks, adopt the following approaches:
- Thorough Vetting Process
Implement a comprehensive vetting process to select the right software development team. This should focus on cost and on the overall value they bring, including their skills, experience, and alignment with your project goals. - Behind the Price Tag
While budget concerns are important, choosing the lowest offer is likely to result in higher expenses and issues later. - Analyze Previous Work
Ask the external team for case studies or samples of their earlier work. Additionally, assess their track record with similar tasks and scrutinize the quality of their past deliveries.
Outsourcing with JetRuby Agency
JetRuby Agency provides outsourcing solutions that help businesses build efficient and effective development teams. By addressing the common reasons companies choose outsourcing JetRuby offers tailored solutions that enable companies to overcome these challenges. Whether you’re a startup looking to bring an idea to life or an established company aiming to scale operations, JetRuby offers the expertise and flexibility needed to succeed in today’s competitive landscape.
At JetRuby, we understand that every business has unique needs. That’s why we offer two proven outsourcing models, designed to meet your specific requirements: Dedicated Teams and Staff Augmentation.
JetRuby’s Dedicated Team Model: Your Project, Your Control
JetRuby’s Dedicated Team model is ideal for businesses seeking long-term partnerships. Through this model, we provide a team of developers committed to your project. Unlike traditional outsourcing, where control is limited, our Dedicated Team operates as an extension of your company. You have complete control over task prioritization, team composition, and how they integrate into your workflows.
This model offers the best of both worlds: access to top-tier development talent without recruitment challenges while maintaining full oversight of your project. Whether you need to scale quickly, shift focus mid-project, or integrate new technologies, the Dedicated Team model provides the flexibility required to adapt.
Of course, with flexibility comes responsibility. The client is responsible for managing the team’s workflow and must handle the risk of downtime if priorities shift. However, this model offers unparalleled agility for businesses needing full control over the development process.
JetRuby’s Staff Augmentation: Expanding Your Team’s Capabilities
This model is ideal for companies facing short-term capacity issues or skill gaps. Whether you need extra hands to meet a project deadline or your in-house team lacks specific expertise, Staff Augmentation allows you to bring in the right talent, without the hassle of recruiting, onboarding, or long-term commitments. Additionally, this model scales your team up or down as needed, typically with just a month’s notice.
How JetRuby Navigates Common Challenges
By addressing the common challenges associated with outsourcing JetRuby ensures that our clients’ outsourcing experiences are seamless and successful.
- Cultural Alignment and Communication
We understand the importance of cultural affinity and transparent communication. JetRuby ensures that our teams align with your company’s culture and communication style, whether you’re adopting a hierarchy, market-driven, or adhocracy approach. We go the extra mile to train our team members in effective intercultural communication, minimizing the risk of misunderstandings. - Quality and Reliability
Our vetting process ensures that we provide only top-tier talent for your project. We deliver functional, high-quality software products backed by exceptional service by reviewing case studies, conducting thorough evaluations, and maintaining high standards We prioritize value over low costs, ensuring that you receive the best return on your investment. - Flexibility and Control
JetRuby’s two outsourcing models — Dedicated Teams and Staff Augmentation — offer businesses the flexibility to adapt quickly and maintain full control over their projects. Whether you need to scale your team or access specialized skills to meet tight deadlines, our models are designed to offer the right balance of control and cost-efficiency.
By choosing JetRuby Agency, you’re not just outsourcing a service; you’re partnering with a team that understands your challenges and works hand-in-hand to ensure your success.
Outsourcing software development is a key trend
Outsourcing software development has become a key trend among medium and large enterprises, especially those whose core operations are not tied to the software’s performance. However, alternatives like direct hiring, Build-Operate-Transfer (BOT), and staff augmentation often provide more commitment and control, leading to higher quality results.
While outsourcing is a cost-saving measure, many startups and major companies have used it to address local talent shortages. In contrast, tech giants prefer keeping development in-house but outsource when project demands exceed internal capacity, often hiring remote developers from countries like Mexico, Ukraine, and India.
Companies like Slack, GitHub, and Google illustrate the success of outsourcing. Slack outsourced parts of its UX/UI design and app development. GitHub’s backend was built by an outsourced engineer who became CIO, and Google used outsourcing to expand its AdWords support. These examples show that outsourcing can go beyond cost savings, offering fresh perspectives and enabling in-house teams to focus on core business functions. By choosing the right partner, like JetRuby Agency, businesses can overcome development challenges and maintain a competitive edge in a fast-paced market.
