The digital transformation, or DX, is announced unstoppable in the coming years. The acceleration in the speed and growth of DX is a direct result of the COVID-19 and the new normal situation, which forced companies to do business differently.

It is no wonder that software development is among the most demanded services worldwide.

The “Digital first” already prevails in every experience. 60% of companies in 2021 have invested heavily in digitizing employee experience. It has radically transformed the traditional way of working. In addition, according to predictions, 75% of organizations will implement digital transformation in their strategies in 2023.

In 2025, digitally native cultures will be adopted by 50% of companies, with a customer-centric and data-driven approach.

A plus of this transformation is that as digital businesses increase, there are also associated risks. Cloud deployment and business transversality have transformed the old approach in cybersecurity paradigms. The adoption of more modern methodologies, such as the Zero Trust Network and blockchain technology applications are expanding.

This increase has resulted in many companies adopting several strategies to have a successful digital transformation. However, not all companies have a robust software development department or specialized developers to assume all the needed work.

If that is your case, how do you rise to the challenge? A reasonable solution for most companies is to search for software development experts to solve their needs. The response looks like a no-brainer, but definitely, it presents us with new challenges.

Which is better: outsourcing software development services or hiring a freelancer?

So you have this innovative idea that will excel your productivity and benefit your customers. You have already decided that the company needs to outsource your software development force. There may be long discussions in your company’s board to determine how this development force would look. Which will be better: hiring a freelance developer or perhaps outsourcing a whole software development team?

Why do companies prefer outsourcing services?

Outsourcing and its three principal models: staff augmentation, dedicated team, and project-based model have experienced rapid growth for years.

The main reasons are, among others:

• The product or service development cycle is closed without the hiring company spending resources training its staff in fields that are not the company’s objective. In this way, there is a direct impact on the implementation time, which is used to the maximum.
• You have access to global talents since physical boundaries between countries do not exist in the online world.
• Adopting this type of service allows the hiring company to focus on those core activities that we must not overlook. This way favors the cost/efficiency ratio.
• The risks throughout the process also decrease when hiring specialists within the team who ensure strict quality control.
• Carrying out the outsourcing team selection process correctly; ensures making an accurate estimation of deadlines, meeting the agreed requirements, and completing the process on time.

Hiring freelancers or a development team from a company with a reputation in the field will exclusively depend on the size and complexity of the software system. In any case, coordinating independent teams of freelancers, sometimes with locations in different countries, can be a problematic issue. In addition, as we will explain, there is no single personality to replace a proven and powerful team.

Managing effective software development teams is always the best option.

It does not matter what you decide. You must be sure that the team structure responds to your objectives. Some desired features at the time of hiring a software team would be:

Well-defined roles. If we had to give our opinion about the key software development roles within a team, we could define a couple of them, although they are all relevant. The presence of a software project manager for the coordination of main points is vital. He is the one who will give cohesion to the team, will guide the processes, and will be in direct communication with the client.

The other relevant role is the technical leader who conducts the most complex aspects of the tackled problems. The use of several programming languages, patterns recognition, and their interpretation are vital skills in this case.

Team wisdom. Working with several perfectly integrated people adds value. One performance draws traction on the others, and no one is left behind. Responsibility is shared when you start from clear and noble company values.

Advantages of straightforward communication. The clear separation of technical and functional aspects is vital. The team reinforces shared ideas, concerns, and opinions. They respond in a cohesive way to the demands of the client if the communication is optimal.

Advantages of a team compared to one developer. There is unity in diversity, although, at first glance, it may be out of place. The development process must be approached as a team effort and not a solo performance.

The project manager must be clever in identifying the technical leader. He must look beyond his technological skill and needs to have the ability to train people. In case he is absent for any reason, it does not affect the performance of the team.

As the saying goes: Great software engineers hire great software engineers. We go a little further to add: not only do they hire, but they prepare them.

Following this model for the software development team structure has many positive reasons:

• Shared knowledge with all the team members
• Cross-training and collaboration is enhanced
• Gain flexibility, as what you are hiring is not only the team but their acquired experience.

A dedicated software development team is very demanded in outsourcing, both for large companies and start-ups. Its benefits in terms of productivity, quick response, and flexibility are proven. In any case, it will depend on the characteristics of the work to be done.

The recommended size of a development team. A large group becomes unmanageable, but teams with the correct members guarantee uniform distribution of work and effective communication. Developers in small groups can be overworked and far from having cost advantages. You pay the consequences in the long run.

Team communication and the use of agile methodologies. These allow you to align the team’s work and save time. Even for an agile development team or a hybrid software development model, the focus on problem-solving is favored, not to mention that team communication in an agile team structure is maximum.

Use of your software or open-source software? It is a question that always haunts the client. In any case will depend, among other factors, on the characteristics that arise in the elicitation of requirements. Also, the degree of trust that exists in the contractual parties.

If you have doubts concerning the kind of development to hire, leave us a message. We will guide and advise you on the appropriate team structure to suit your interests.