Software development is a constantly changing field, necessitating the selection of an optimal cooperation model with programmers. The article details five popular models, including the Build-Operate-Transfer (BOT), IT outstaffing, IT outsourcing, IT recruitment, and Research and Development (R&D) center outsourcing.
1. The BOT model delegates the entire set-up process of an R&D center to a third-party provider chosen by the client. The BOT provider subsequently transfers the center back to the client. The provider shoulders the preliminary costs of software office setup, such as staff hiring, accounting, and payroll. BOT is convenient and cost-effective at the initial stages but could pose problems later with the transfer stage, often taking years to complete and being costly.
2. IT outstaffing is a model where a company contracts an IT outstaffing agency to furnish software developers. These developers then work on specific tasks or projects for the company. The model is cost-effective and allows easy resource allocation. However, it comes with the challenges of temporary cooperation, security risks, and high buy-out fees.
3. IT outsourcing involves delegating specific software development tasks or entire projects to external service providers. The model is cost-effective and provides access to a wide range of trained experts, making workforce expansion quick and easy. However, challenges include lack of control over development, potential issues with intellectual property rights, and hidden costs.
4. IT recruitment is the traditional method of recruitment where an agency attracts, interviews, and hires people for specified jobs. While it’s cost-effective and efficient, it may not be necessary for companies requiring a one-time app or website development. Also, the model’s success hinges on clear guarantee terms from the vendor.
5. R&D center outsourcing involves setting up an R&D center with the help of a partner. This comprehensive approach combines IT recruitment with legal support, accounting, HR, branding, and infrastructure setup. While beneficial for expanding international presence, this model might be too expensive for smaller businesses.
Choosing the right model depends on the business’s specific needs and resources. For optimal results, companies should weigh the pros and cons of these methods before deciding on the right one. Maryna Panchuk, the author of the article, is an experienced IT recruiter who can aid in this decision-making process.
