How does an organization manage its resources? We’ve seen organizations fumbling at the basic points. The common mistake is to aim bigger when you’re not prepared for it. You cannot fight Goliath without being prepared. Your organizational strategy needs to be different and needs to be tailored to what you need. In a competitive scenario, you will need to be prepared to fight the basics. For instance, you will need to have to decide between outsourcing projects versus choosing the seemingly more reliable option of staff augmentation. Here is a look at what a normal IT Consulting firm has to take care for instance. For them, staff training is important, as well as the question of security. Staff augmentation can take care of both these incidents but it might not be able to solve network or software issues that the in-house team cannot handle. For that, they might need to outsource the projects. What is Staff Augmentation? Staff augmentation can be a great way to reduce costs and improve operational efficiencies. If you’re looking to expand strategically and are looking for more human resource, staff augmentation is the way to go. Staff augmentation refers to where can add in staff to your organization as you want. Staff augmentation refers to adding in staff as per the needs of the company. You do not permanently hire the employees so you can scale up and down as needed, offering you the flexibility to manage important projects and needs as well as avoiding the liabilities of hiring full time employees. After the work is complete, the staff will no longer need...
In today’s competitive world, businesses want to be careful when deciding whether a large software development project should be done in-house or done by outsourcing the work. Some companies have an in-house software development setup (captive centre subsidiary), but they are so flexible that they outsource work to reliable vendor partners. Other organisations no longer outsource major software development work, because of their captive centre setup which has long-term goals. You can select the best one that suits your business’s purpose in the short-term and in the long-term, by comparing the two setups. So let’s take a look at a comparison of the key drivers and challenges for a captive centre set up with those for a vendor partner set up. Key Drivers for the Captive Centre Setup Does your business have a captive centre in a low-cost area? Do you want to benefit from the cost-savings of offshore resources? Then this model is the one for you. You can choose to set up your own captive centre to make the most out of its large-scale offshore plans. Does your business deal with sensitive information? Do you want to prevent the potential risk of data leaks to third parties? Then you may prefer this model. For example, if your business is based on banking, insurance or the stock market, you deal with a lot of monetary transactions and sensitive customer data. Do you want complete control over your sensitive operational activities, like product costing and new product launches? Then this setup is suitable for you. Does your business handle a complex software development project? Then the knowledge gained by...
Application maintenance outsourcing (AMO) is an important part of application outsourcing. With AMO, you can outsource all the maintenance activities, such as enhancements, corrections and patch developments. Image credit: Flickr You can get the resources that you need for the maintenance phase of your project on a contract basis. These resources include the manpower with the required technical skills, technology and other required resources. Application development and maintenance form about 80% of the total work that is outsourced. The number of outsourcing companies is also increasing due to the huge demand. Thus, let’s take a look at the several pros and cons it comes with. Pros of AMO AMO is a cost-effective solution and improves your operations and technology well. Here are some benefits of AMO: Cost and time saving It lets you have more time to develop the app and for other operations. It lets you concentrate on the core business. It makes use of external expertise. Gives you access to industry experts without paying a big compensation as you would for a normal employee. Allows your work to be flexible. Gives you access to talented IT professionals, better tools, equipment, and technology. Improves the performance, productivity, and customer satisfaction. It allows work to be continued in different time zones. Enables you to go without a payroll system. Nullifies the worry about losing key employees. Cons of...
