Project-based outsourcing – characteristics and benefits

Is your IT project hitting a roadblock? Perhaps a lack of in-house expertise or an overwhelming workload impedes your progress. Or maybe you're among the 40% of companies without a customer app, watching competitors race ahead?

If the above concerns sound familiar, don't worry – you're not alone. Many businesses face these challenges and turn to project-based outsourcing to overcome them.

What is project-based outsourcing? What benefits can you expect for your business? Stay with us to the end and discover the behind-the-scenes of the project-based outsourcing model.

What is project-based outsourcing?

Project-based outsourcing is a cooperation model where the software company takes care of all the activities involved in delivering a fully-fledged project. The client's role is to communicate their expectations, vision and deadlines. It is on the outsourcing provider's side to coordinate all the activities, manage the team and deliver the finished project to the client within the specified deadline.

Characteristics of project-based outsourcing model

The main differentiator of this cooperation model is outsourcing all project activities to an external company. As a client, you do not need the knowledge and skills of software project management because the external provider is responsible for all project phases.

The project starts when you define initial requirements which shall be met during the development stages. Regular updates from the outsourcer allow you to modify the project direction or add new features to adjust the product to the ongoing market changes.

Advantages of choosing project-based outsourcing for your project

Are you unsure whether project-based outsourcing is the appropriate cooperation model for your upcoming project? Explore the advantages of choosing this solution and see if they address your concerns.

No tech experience is needed

You don't have to be proficient in software development to have a stunning web shop, mobile app or business process automation tool. Project-based outsourcing guarantees taking care of the technical and business aspects of delivering full-featured software for your company.

Planned schedule and timeline

If time is a priority and you have a clear vision of the results you want to achieve, the project-based outsourcing model can help deliver your product on schedule. While unexpected issues may arise and delays can occur (for example, a precisely defined timeline might be disrupted by an incorrect update to one of the globally available systems), the structure of project-based outsourcing often helps manage and mitigate potential delays more effectively.

Regular project updates

The external team works independently but does not leave you uninformed about the progress of the work. By opting for project-based outsourcing, you get updates on the completion of project milestones.

Optimised time-to-market

Before the work starts, you define the initial requirements and the timeframe. The agile approach in the project-based development model streamlines the process by efficiently using personnel, time and financial resources. Even if the project experiences numerous changes in the course, the likelihood of violating the deadline and delaying other company's activities will be negligible.

When should you decide on project-based outsourcing?

Do you want your business to have cutting-edge technology solutions but have only a clear vision of the benefits they bring? That’s a great starting point, but you need to take the next step. See if any of the following scenarios reflect your current situation and determine if project-based outsourcing is the right choice for you.

Launch a product without an in-house IT team

The lack of software developers is no barrier to growing your business as fast as companies with an in-house development team. Project-based outsourcing is a cost-effective alternative to hiring developers, testers and project managers with the right skills.

Develop a precise vision of your project

When you know your business needs, project-based outsourcing software development starts as soon as you pass on your demands. A precise vision and ongoing cooperation with the outsourcing partner will result in a satisfying solution in a short period.

Focus on your core business

The project-based outsourcing model helps small entrepreneurs with multiple roles in their businesses. An external company takes care of all the elements necessary to deliver a successful software product while you grow your business, look after your customers and increase profits.

Partner with trusted and experienced professionals

The project-based outsourcing provider is a close-knit team of people who have completed many projects together. Various assignments allowed them to learn the specifics of many industries and specialise in frequently used and niche technologies. Thanks to the outsourcing provider's extensive experience, your project will be equipped with proven functionalities and free from the most common problems.

Optimise your involvement in the development process

We understand perfectly well that software development may not be as exciting for you as it is for us. :) That is why the project-based cooperation model takes all the software development tasks off your shoulders and gives you regular updates about the project. You maintain control through clear communication and project milestones, while your IT partner handles the technical complexities.

Differences between project-based outsourcing and other cooperation models

Do you want to find out if project-based outsourcing is the most suitable for your software project? Know the differences between the services and make a decision.

Project-based outsourcing vs dedicated team

A dedicated team is the right option when you have in-house developers and a project manager but need extra resources for specific elements of your project. This team can focus on specific tasks, such as developing features in a new programming language or performing detailed testing.

If your company does not hire software developers, a more convenient way is to partner with an outsourcing provider that has dedicated programmers and management staff to coordinate all steps of the project.

Project-based outsourcing vs team augmentation

A team augmentation model, like a dedicated team, is good for projects that require partial external assistance. One or more additional developers selected for your company support internal programmers and help them complete tasks according to the deadline.

If you have no personnel to manage a project in-house or do not want to coordinate on your side, the project-based model will take care of the design, programming, testing and implementation with minimal effort on you or your employees.

Project-based outsourcing vs managed services

In the managed services model, external IT specialists coordinate support over one or more IT areas. Managed services are a form of long-term cooperation without a specific deadline. The outsourcing team is focused on providing ongoing maintenance.

The project-based outsourcing model focuses on delivering software based on clearly defined requirements and deadlines. If you are satisfied, you can use this model repeatedly – each new project will be treated independently, with the outsourcer focusing on the new project's specific needs.

How can you leverage the potential of project-based outsourcing in your company?

The project-based model gives you the necessary software to grow your business and attract new customers. Furthermore, you save time and costs on recruitment and management. The only effort on your side is to choose the right outsourcing partner and to keep an eye on the regular updates, which shall be an easy ride.

Project-based outsourcing with Happy Team guarantees cooperation with a perfectly harmonised team of specialists and (above all) happy people. Your success is our success, so we will not release a product with any shortcomings. We will do everything to ensure that you are as satisfied as possible with our cooperation and that your new product is a trampoline to success.

Take care of your business development and customer experience, and we will provide the necessary tech tools to support you.

Conclusion

The project-based cooperation model is a popular solution for businesses that want to take full advantage of tech improvements, but investment in setting up their own IT department is not their priority.

With project-based outsourcing, any business improvement, corporate application or web service is as near at the hands of small businesses and start-ups as large companies, which levels the competitive landscape.