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Outsourcing Developer: Why Indonesian Companies Should Consider It

Outsourcing Developer – There is nothing more troublesome for a company than winning a project, but lack of resources to get it done.

Most of the time, recruiting new employees is not the answer, as its long process will waste your time–something that you don’t have plentifully when handling a project. The thing is, client will not likely to wait for you. Time will keep ticking and deadlines will keep approaching. You might be wondering, how is it possible to get the right, capable talents for your project in such a short notice?

Your best bet: try hiring experts from an outsourcing company.

It is fast, uncomplicated, and you can simply arrange the employment according to your company’s needs. While it can be very difficult to find available experts to hire, an outsourcing company will provide you with the most suitable candidate within weeks. It saves you from a lot of steps you have to take and costly expense you have to spend when recruiting in-house employees.

You won’t have to worry about high training cost either, as it has been taken care of by the outsourcing company.

Furthermore, a lot of outsourcing company are also offering businesses with the opportunity to increase their development capacity, and to share their workloads with a third-party so that their internal team can focus on the core business more. This was presumably the very reason why this practice began in the first place, although nowadays, a lot of companies decided to outsource merely to cut costs.

Brief History

Although outsourcing was not formally identified as business strategy until 1989 and became the integral part of business economics throughout the 1990s, the history of this practice can be traced back to the Industrial Revolution era where companies, to quote an article by NC state university, ‘have started to grapple with how they can exploit their competitive advantage to increase their market and profit.’

In 1950s and 1960s, as a result of diversification, companies began to expect more profit and, as the result, in around 1970s and 1980s, compete globally though being hindered by a lack of agility caused by bloated management structure. To tackle this situation, many large companies tried to increase their flexibility and creativity by developing a new strategy of focusing on their core business, a strategy that was later called as ‘outsourcing’.

outsourcing developer
Business card photo created by yanalya – www.freepik.com

What is Outsourcing?

Basically, it is called outsourcing when you, as a company, hires another company to be responsible for activities that are and could be done by your internal staff and resources.

It is a business practice and strategy in which an outsourcing company–usually known as the third-party–arrange their own worker to perform the tasks or services for another company, either on-site or remotely.

These days, you can get almost every support for your company’s IT needs through outsourcing. A lot of reliable outsourcing company will provide you with the most skillful talents with various skillsets that you can choose to meet the needed requirements. From back-end to front-ed developer, designer, and even the project manager, you are given the choice whether to employ a person, or a team.

On-Site Outsourcing

If you hire someone from an outsourcing company and they have to work from your office instead of their original company, it is called an on-site outsourcing. The differences between this and the regular recruitment for in-house employee are, obviously, the hiring process, and the employment system in which you can employ qualified experts for merely a short period–or, in this case, as long as the duration of your projects.

There’s no need to hire them permanently, nor be the one to responsible for their health insurance, which is not cheap, and incentive as the outsourcing company has covered it all.

outsourcing developer
Photo by Hannah Wei on Unsplash

Remote Outsourcing

With remote outsourcing, the employees that you hired stays at the outsourcing company’s office. They work for you, do every task you assign to them, but remotely. And no, it’s not similar to when outsource a project to a third-party company. The main difference lies in the project’s executor. When it’s the project that you outsource, you hire the whole company and anyone in the company might be doing it for you.

When you outsource the specific employee, you pick the personnel that fit your needs the best, and only those people will execute the tasks for you. You can still get the benefits of on-site outsourcing, but without the trouble of having to provide a space in your building. They won’t stay for a long time, anyway.

However, as much as this sounds more beneficial than the on-site one, it does come with challenges that can hinder your team’s performance if not managed properly. First challenge, communication. Since you and the employee you hired won’t be working from the same place, you will have to make extra effort just to communicate with each other. Second, for the same reason with the first one, it’s rather difficult to do supervision.

Third, while software development relies heavily on collaborative work, collaborating is also something that remote-working employee can’t do easily. To fix those problems, many experts has recommended companies to adopt scrum to manage their projects.

But What is Scrum, Anyway?

To give you summary, Scrum is one of iterative and incremental Agile software development methods where products can be delivered in a productive and creative manner with aim to achieve the highest possible value.

While Agile is the practice that employs incremental and iterative work beats called sprints, Scrum is more like the process. It is a framework that each member has to follow so that the team can achieve the same goals. With its 3 pillars, which are transparency, inspection, and adaptation; Scrum allows projects to be self-organized, and constantly examined to ensure that the process won’t deviate too far from the goal.

Scrum is usually conducted by a team comprises Product Owner, Development Team, and Scrum Master. There are 4 events in running a project managed by Scrum:

outsourcing developer

– Sprint Planning

A beginning of a Sprint when the entire Scrum Team are collaborating to plan the work that’s going to be performed during the Sprint. In this event, the Scrum Team discuss Product Backlog, the latest product Increment, projected capacity of the Development Team, and Sprint Goal that the team want to achieve at the end of the sprint.

– Daily Scrum

Daily event at which the Development Team plans work for the next 24 hours, inspect the work since the last daily scrum, and forecast upcoming Sprint work. The aim of this event is to optimize collaboration and performance of the Development Team.

– Sprint Review

An event that is held at the end of the sprint where the Scrum Team and stakeholders collaborate to inspect the Increment and adapt the Product Backlog if needed.

– Sprint Retrospective

Sprint Retrospective is an event where the Scrum Team got the opportunity to inspect itself and create a plan for improvements to be implemented during the next Sprint. It is usually conducted between the last Sprint Review and the next Sprint Planning.

A Sprint is a time period at which a ‘Done’, usable, and potentially released product Increment is created. While the Scrum framework itself isn’t exclusive to software development and outsourcing system in general, Scrum is probably the most well-known framework for agile software development, as software development is usually prone to uncertainty and bigger risk, thus going back to fix them would cost too much time and money.

In outsourcing, though, Scrum helps to improve team’s communication, coordinate work more efficiently, and gain responsibility of the product. When you outsource developers to work remotely, it usually technology that help you communicate with each other.

One of our clients, for example, has set a specific time of when they would contact the outsourced developers and conduct Daily Scrum through video call on Skype. Later at the end of the day, the developers would report the progress and what they have done that day to the PIC from the client-company, usually through project management and collaboration applications.

At BTS.id, we are committed to help companies expand their capacity by providing experienced talents with wide range of skillsets in software development. With mission to always give the best service to our clients, Bridge Technology Services (BTS.id) can be the solution to your business

Looking for talented developers to outsource? Contact us:

Phone : (+62 22) 6614726
Mail : info@bts.id

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