Go to:

1. 1. Why is it worth outsourcing business analysis?
2. 2. Business analysis outsourcing – what will you get?
3. 3. Summary – areas of business analysis

Why is it worth outsourcing business analysis?

Based on client expectations, business analysts deliver the relevant information to the software programming teams, which is helpful when choosing the best IT solutions. Also, during the project development stage, business analysts are on standby to support the IT team in their assessment of the current situation and when making the most important decisions. Added to this, they are in constant contact with the client to monitor his current business needs.

Business analysis outsourcing – what will you get?

Full project support from business analysts

Requirements engineering is an important element of each software development project. Business analysts collect business requirements, facilitate the determination of the goal of the project, and check if the solutions envisioned comply with the realistic possibilities of implementation and the goals set for the project. As a result, you will receive solutions tailored to your needs.

Understanding and improving processes

Business Analysis facilitates understanding and ameliorating processes. For example, at Inetum we conduct Agile analysis of IT concepts and projects in terms of the technical, technological and operational capabilities of a given organization.

EXPERT KNOWLEDGE

Agile Methodologies in Software Development

Find out what agile means and what are different agile methodologies in software development. Go to article!

PoC or MvP project

Our business analysts help to create PoC (Proof of Concept) and MVP (Minimum Viable Product) projects. This allows us to check the development potential of projects with little effort and cost and make sure that the product meets the requirements of business representatives.

A wide range of Business Analysis services

The services offered by business analysts include complete IT systems projects.

At Inetum, we create business process models, logical and physical data models, databases, system integrations, multidimensional data models, as well as data warehouses and architecture based on SOA (Service Oriented Architecture).

Proven tools for Business Analysis

Business analysts use proven UML, BPMN, SysML and ArchiMate notations.

Along with the support of business analysts from Inetum, you will benefit from the potential of modern tools and technologies such as Enterprise Architect, Aris, Visual Paradigm, Microsoft Visio, and many others.

Better project documentation management

BA provide professional project documentation containing the results of the analysis, reports, and a project strategy proposal. Documentation translates into tasks which the project team is working on (developers, testers, or Business Intelligence specialists).

UI Design – only the functionalities that you need

In Inetum projects, business analysts conduct UI prototyping. User Interface Design consists of designing the user’s path and indicating which functionalities will be useful, so that the interface is as intuitive and friendly as possible.

Summary – areas of business analysis

Thanks to experience gained working on numerous projects for companies from different industries around the world, our business analysts have learned the specifics of various business environments and gained valuable knowledge which they draw upon during the creation of analyses.

They also keep up with the latest trends in analytics, so the reports they provide are based on the latest analytical methodologies and an integrated set of analytical tools.

Elevate Your Application Development

Our tailored Application Development services meet your unique business needs. Consult with Marek Czachorowski, Head of Data and AI Solutions, for expert guidance.

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Go to:

1. 1. Java outsourcing services
2. 2. What you gain thanks to Java development outsourcing?
3. 3. Why companies choose Java solutions?
4. 4. Areas of specialization in Java development outsourcing
5. 5. Typical usage of Java programming language

Java outsourcing services

Experienced development teams build Java applications with due diligence in mind, ensuring the highest quality and best practices in app development. Discover the wide range of additional Java outsourcing services, competencies and business solutions, thanks to which your firm will be fully supported in the scope of software development.

What you gain thanks to Java development outsourcing?

Expert advice on the latest tools and frameworks

By outsourcing Java development, you gain access to the knowledge of Java experts and teams that use the latest technologies and tools.

At Inetum, for many years, we have been successfully developing solutions based on JVM languages such as Java, Groovy, Kotlin and Scala. We use proven frameworks and tools that allow us to create a high-quality final product.

Agile Approach

Thanks to the Agile approach (Scrum, Safe, DaD, Kanban) and the support of Scrum Masters, Java development projects are oriented towards maximum efficiency and taking advantage of 100% of the communication skills of Java developers and teams.

We uphold the principles of agile project implementation and promote the role of Agile as well as using the latest tools facilitating progress monitoring (Jira, Atlassian tools).

Java applications of all types

As part of Java software development projects, teams deliver all types of Java solutions:

• web apps,
• custom applications,
• mobile apps,
• and all kinds of enterprise applications.

Our Java team can also undertake Java migration projects, according to the needs of the customer.

Wide range of Java development services

You can either get support for your in-house team, build a dedicated team or complement your existing team. This is one of the biggest benefits of outsourcing Java developers and IT professionals.

Proven approaches and technologies

You can benefit from continuous integration approaches (DevOps) and various technologies that allow development teams to achieve maximum efficiency.

At Inetum, we aim to facilitate the management and maintenance of our products, which is why we focus on microservices architecture and solutions such as Service Mesh, Docker or Kubernetes.

Flexibility and a mature development process

You gain more flexibility. Not only thanks to the Agile approach – there are so many options to choose from!

We are flexible – if the client wants to use a different approach to develop a project, we also offer Waterfall methodologies or a hybrid approach.

Java development outsourcing support tailored to your needs

Java development company can offer the support of Java developers at all skill levels: senior, regular and junior. Regardless of whether you need permanent or temporary support, our Front-End and Back-End developers or DevOps specialists will support your project with their knowledge and competences in the scope and time that you need.

Only tested solutions

Quality is a priority in all projects concerning mobile development, web applications development and many others.

For example, our Java teams and developers are supported by Quality Assurance engineers and certified software testers. We use programming patterns such as BDD, TDD, DDD or Pair Programming to provide high-quality software.

Software development outsourcing with the best dedicated Java developers and teams

Cooperation with Java development company gives you access to competences and experience of the best Java specialists on the market, without necessity of paying for time-consuming recruitment process.

EXPERT KNOWLADGE How to Build a Java Developer Team in 5 Steps   Why an expert partner is the best way to hire Java developers for your team? Read the article!

Why companies choose Java solutions?

Java is object-oriented

Java allows for the creation of easily maintainable module programs that can be reused in the future.

Active community

The active community of Java users, as well as a wide range of open and free-of-charge sources, allows for the swift creation of secure solutions. All of this without additional costs related to software development.

Secure

Java is one of the most secure programming languages thanks to its reliable, integrated security functionalities.

Multithreading

Java applications are able to process multiple tasks simultaneously. This is why the technology can be successfully used to build an application for capturing and processing data, as well as analyzing it.

Areas of specialization in Java development outsourcing

Superb quality software development services

How to choose an IT partner? What makes it stand out?

Years of experience in Java development services

Choose a partner for whom programming is more than just writing code and is actively engaged in Java community events.

The best Java developers are appreciated by clients

The high-quality Java development outsourcing services provided by development teams receive rave reviews from global clients on the reference portals.

Inetum has earned a lofty position in the rankings, gaining the trust of other companies developing their digital platforms, websites and mobile applications.

Involvement in the Java community

Our developers run mentoring and internship programs for beginner programmers sharing their Java development expertise. We help them to spread their wings as part of the original program. “The best of the best” are offered longer-term cooperation.

Their Java developers create self-designed solutions

Hire Java developers that create pioneering solutions used by large enterprises.

We take part in greenfield projects for E-commerce, FinTech, HealthTech, IT Consulting and other industries! We have the knowledge and competences that allow us to design a digital product or functionality from scratch, and then develop, monitor and maintain it on our own.

They are independent and flexible 

Thanks to their vast experience and access to the latest tools, the best Java developers act independently and are able to offer the client’s teams frameworks, solutions and libraries tailored to their current needs.

EXPERT KNOWLEDGE Scrum Master vs. Agile Coach Who’s Best For Your Team? Go to article!

Typical usage of Java programming language

Android is a Java-based platform, which makes Java one of the most commonly used programming languages, allowing for the development of mobile applications. Moreover, Java frameworks, such as FX and Swing, are used to create graphical interfaces in desktop applications. Java is also used while creating websites, wherein popular frameworks are Spring Boot (including Spring MVC) and JSF.

Spring Data Repository is used in order to develop the back-end of an application. It facilitates access to data gathered in both SQL and non-SQL databases. There is a wide range of available Java programming tools facilitating and expediting project development – including integrated programming tools (such as: IntelliJ IDEA and Eclipse), software development automation tools (Maven, Gradle), continuous integration tools (i.e. Jenkins and Bamboo) or version control systems, i.e. Git or SVN.

Contents

1. 1. Waterfall Project Management Explained – Benefits & Drawbacks
2. 2. The Waterfall Methodology Explained
3. 3. 1 – The Requirements Phase
4. 4. 2 – The Design Phase
5. 5. 3 – The Implementation Phase
6. 6. The Agile Methodology Explained

If you’re delivering software projects, it won’t be long before you come across the age-old debate of which is better – Agile or Waterfall project management. Both methodologies have their supporters and enemies, but each undoubtedly brings something different to the software development process.

Want to know my view? As a project manager, you need to know how and when to use both to maximize your chances of a successful project delivery. And, by the end of this article, I’m sure you’ll believe that too. We’ll look at the benefits and drawbacks of both methodologies, how they shape up when you compare them side-by-side, and how to choose the right one for your software project.

Ready? Let’s get started!

Waterfall Project Management Explained – Benefits & Drawbacks

The Waterfall methodology has been around for decades and is seen by many as the traditional way to deliver well-controlled projects. It has its roots in construction and engineering and is still used worldwide by millions of people every day.

Let’s find out some more.

The Waterfall Methodology Explained

The waterfall methodology is a framework for delivering a project in a linear way. Each of its distinct phases/stages are completed in turn, only moving on to the next phase once everything in the previous stage is completed, E.g., all requirements are gathered for the entire solution before progressing to design.

Waterfall methodology
There is a range of different waterfall methodologies out there, including Prince2, PMP, and APM.

It’s this step-by-step, top-to-bottom approach that gives it the name ‘Waterfall.’

Let’s break down each phase of the Waterfall model so you can see how to take your project from A to B.

1 – The Requirements Phase

Also known as the Initiation Phase, Concept Phase, or Kick-Off Phase

This requirements phase is about getting the project started and understanding what you want to achieve. In this phase, teams will gather high-level information about the project cost, objectives, scope, timelines, risks, issues, and resources.

Crucially, and as the name suggests, the project team will also gather the project requirements – working to understand what the project should deliver. In software projects, these may be Epics or Features that a new system should provide to the end customer.

This phase usually ends by creating a complete project plan or business case that lays out in detail how the project will be delivered.

2 – The Design Phase

The design phase builds on the requirements phase to fully understand how the project team will build the solution. During this phase of a software project, the project manager will begin to assemble a team of experts, including designers, architects, technical leads, and business analysts.

In Waterfall, given that the whole solution is delivered in one go, the entire design has to show how all of the different component parts fit together.

This phase usually ends by creating a set of detailed project design documents, as well as updating the project plan or business case from the previous phases as the team learns more.

3 – The Implementation Phase

Also known as the Development Phase, Build Phase, or Execution Phase.

Now the action really starts, as the next phase is all about creating the project deliverable. After the designs are re-checked and the development team is happy, work team will begin to create the solution.

In the software development world, more team members join the team, such as developers and testers, and the development process truly begins.

This phase ends once all of the requirements have been created. Most projects will also create a range of technical documentation to support the implementation too.

PROJECT MANAGEMENT

What are an Agile tester's responsibilities within a Scrum Team? Read the text!

The Agile Methodology Explained

An Agile methodology is an iterative approach to project management, whereby the delivery is broken up into different parts that incrementally build to create the end solution. Often referred to as cycles, agile methodologies focus on delivering business value quickly and regularly, all while the team learns as the project progresses.

This means that, unlike Waterfall, which is linear, Agile breaks up the work and cycles through the lifecycle as often as is needed to deliver the solution. Depending on the project’s size, this may mean that you cycle through the Planning/Design/Testing/Deployment/Feedback stages tens or hundreds of times until all the work is complete.

Going one step further, according to the “Scrum Guide”, in Scrum there are “self-management teams, which means that they decide for themselves who will perform specific tasks, when and how”. In Scrum Teams, there is no manager who points the finger at individual developers, while at the same time dividing tasks between them. Scrum essentially takes for granted the fact that employees are smart and responsible enough to decide for themselves how and when to perform a specific task.

When it comes to developing software and running projects, many people want to have the best of both worlds by using a Hybrid Methodology. Let’s take a brief look at them to determine if they’re a good idea.

Like any hybrid, a Hybrid Project Management approach seeks to combine the best bits of Waterfall and Agile to give a project speed, iteration, and control.

In most instances, a Hyrbid technique will follow the high-level philosophies of Waterfall, such as detailed upfront planning and structured documentation, but use Agile iterations to get tasks done inside each stage/phase.

‘We treat JCommerce consultants the same way we treat our own employees. Simply they make up one team, working with us developers together on a daily basis’

– Andrew Shemnack, Field Assistant

In principle, this sounds like a great idea, but in most cases, you end up simply creating an ugly duckling – losing the benefits you gain from either approach. Hybrid methods often find themselves becoming unstructured while not moving at the speed you’d expect from an Agile methodology.

Do I recommend them? The answer is no, probably not. You’re always better off opting for a defined approach that gives you and your teams a tried and tested framework to follow!

What can better navigate you to the right location if not a road map, meaning the right location strategy? Simply put, location strategy is a plan that includes determining the objectives of your company and then finding the right location to achieve them. There are many factors to consider, so choosing a new location should be preceded by an in-depth analysis.

Important factors to consider while choosing a new location include:

1. Geographical proximity 

According to State of Tech Hiring 2023 study by CoderPad, the majority of teams are now hybrid, with only 15% of developers working 100% on-site. Many companies worldwide have moved to a work-from-home model, and business travel has been replaced by online meetings. Does this mean that distance does not matter anymore? Not necessarily. When working on digital solutions, geographical proximity can be a competitive advantage. In IT nearshoring, working within a similar time zone facilitates daily communication which is crucial in the case of Agile project software teams. 

2. Availability of skilled programmers 

The IT talent shortage is a never-ending story. The pandemic has made matters worse and the demand for tech talents has risen on an unprecedented scale. However, when looking for the right location, it’s also worth considering not only the availability, but also the proficiency of experts. Do they have the know-how and the right level of competences for your project? International rankings such as those published by HackerRank and SkillValue can be helpful here.

 3. Costs  

In 2023, salaries will increase by 3% to 10% and remuneration is the major  motivation for candidates to switch jobs. For this reason, hiring qualified software developers is becoming a real challenge. The costs of software development may vary significantly, depending on location. By outsourcing IT services to countries with a vast talent pool (such as Poland) you can lower the cost of software development without compromising quality.

4. Room for development 

When searching for a new location, make sure to allow room for expansion – not only in terms of office space but also in the context of scaling the project team. When it comes to IT service centers located in larger cities, the scalability of teams is not an issue. In the case of nearshoring, the IT partner provides all necessary competencies according to the current needs. So, when thinking about development in the context of project growth and involving more specialists, it is worth considering IT nearshoring in the Time and Material model.

5. Availability of amenities and services 

Last, but not least, while thinking about relocation, ensure that the appropriate infrastructure is in place for your employees – meaning amenities (housing and shopping areas, communication systems etc.) and services. If you do not plan to relocate employees, perhaps there is a provider on the local market who can take care of part of the work related to setting up a new office (e.g. preparing the facility, recruiting employees, taking care of processes and knowledge transfer). In such a case, you can take advantage of the Build-Operate-Transfer model. 

Nearshoring services

Entrust your project to nearshore software development experts Get started now!

Examples of location strategy methods  

The weighted scoring method / factor rating method

Using a weighted scoring method, you take a variety of aspects into consideration and evaluate them. Creating a list of important factors and weighing them accordingly is recommended. Eventually, you compare all locations and choose the option with the highest score.

Break-even analysis 

With this method, you conduct a cost-volume analysis allowing for an in-depth insight into economic aspects. You need to identify both variable and fixed costs and make a decision based on the results.

The Center of Gravity Method  

This method is particularly helpful in determining locations for distribution centers or in supply chain planning. It consists in determining the optimal location in terms of transportation costs.

How to find an optimal location?

When it comes to choosing the optimal location, decisions cannot be made overnight. There are many other factors to consider, for example, legal regulations, level of digitization, transportation costs, and quality of life in a given area. A general to specific strategy can come in handy here. After deciding on the country, then it will come time to get a closer look and choose the exact location. In the process of getting to know the best IT service providers to support your project, do not underestimate the value of the organizational culture of your IT partner. In the end, people are at the heart of every business.

Focus on Poland – the shining star of IT nearshoring services 

For many European countries looking for IT nearshoring partners, Poland has become a natural choice. Poland is a valuable European academic center of ICT, science and engineering. The expertise and vast talent pool make this country an advantageous location and an important supply base for other European countries struggling with the problem of an IT talent shortage. According to the “European Cities and Regions of the future 2022/2023” report, Polish cities and regions are ranked highly among the best investment locations. Apart from the ranking of large cities, Poland can boast of 4 mid-sized regions on the list of the top 10 most business-friendly areas in Europe (Lower Silesia, Lodz Voivodeship, Greater Poland, and Lesser Poland).   

Warsaw  

The capital of Poland is ranked 2^nd in Europe in terms of business friendliness. Researchers also emphasize Warsaw’s significant economic potential.

The capital of Poland is number 7 in the overall ranking of major European cities in 2022 / 2023; what is more, the Masovian Region has been recognized as one of the top 10 areas in Europe in terms of cost-effectiveness and investment potential.  

Read more about Warsaw! 

Katowice  

The capital of the Silesia region, traditionally associated with mining and heavy industry, is today one of the best locations for IT nearshoring in Poland.

The city of Katowice is number 5 in the ranking of large European cities of the future. In turn, the Silesian region is ranked 4^th on the list of the most important regions for investment. 

Read more about Katowice! 

Krakow 

Krakow, a well-known tourist attraction, is the clear winner in terms of business friendliness. It is also ranked number 2 when it comes to human capital and lifestyle, which makes it the right choice for BOT model-based projects. An extensive base of university graduates makes it an ideal place to build IT teams and open software development projects. 

Summary   

Choosing the right new locations for companies or outsourcing services is now possible thanks to different techniques such as break-even analysis, the weighted scoring method / factor rating method or the center of gravity method. When it comes to team building (e.g., for multi-location teams), selecting the location is just the first step. The next one is to implement suitable management standards that ensure the efficiency of your team. We recommend you familiarize yourself with our materials and guides on agile methodologies.

Service provider role in models based on gain sharing

Models based on gain sharing work when a “partnership” approach is needed to achieve a mutually-beneficial result, such as reducing purchasing spend. Gain-sharing inspires both the service provider and the client to work together creatively and gives the service provider flexibility in their delivery. However, this type of arrangement very clear baselines and target-setting, can be difficult to manage and may lead to debates about the level of contributions provided.

The fundamental premise of the model is the existence of a parameters materialized (and can be elaborated for different volume levels) in the flexible budgets and standards of each cost center. The model is comprised of four steps.

1. Elaboration of the original budgets — taking into account the amounts and the values of the resources forecast for each volume level and for each cost center (considering its particular work units).
2. Revision of the original budgets (or elaboration of the revised budgets) — consisting of a revision of the quantities and values of the resources previously planned for each volume level and for each cost center (considering its particular work units). The revised budgets constitute the base for comparison of expenses incurred and, therefore, the measurement of gain-sharing;
3. Counting of the expenses incurred — based on the same concepts and criteria adopted in the previous phases.
4. Comparison of the expenses incurred with the constants in the revised budgets — allowing a measurement of gain-sharing and an evaluation of the contribution of the cost centers (and the diverse elements that make up their costs). The comparison between actual costs and estimated costs allows the measurement of cost savings to be obtained.

Gain sharing and cost savings

As previously noted, the amount of fixed cost stays constant within a determined interval of activity. The measuring of the savings of fixed costs is through a comparison of the forecast total value of expenses (for a given level of activity) with the actual total value of the expenses incurred.

Read also: Build-Operate-Transfer model

Gain share pricing model – summary

In summary, gain sharing model best suits the more complex deal types and most likely a situation where a new (but perhaps more risky) business opportunity exists and where both parties have access to a real upside if they work together to leverage their respective core skills (e.g. the customers brand or product design, and the outsourcing service providers execution/processing capabilities).

Elevate Your Application Development

Our tailored Application Development services meet your unique business needs. Consult with Marek Czachorowski, Head of Data and AI Solutions, for expert guidance.

Schedule a meeting

Hybrid work and safety first

Compared to 2010, the number of remote workers has increased by 400% in 2020. According to studies, nowadays 72% of employees prefer the hybrid model over full-time office work. The importance of the remote workforce has a significant impact on IT project implementation in two areas.

1. Firstly, we can predict that the majority of the projects will still be carried out by distributed or dispersed development teams. The year 2020 proved that this strategy helps companies to remain operational and at the same time adapt to new digital, business and pandemic circumstances.
2. Secondly, for safety reasons, more than just the IT provider’s teams will “stay home” and solutions and technologies based on the assumptions of the Distance Economy will gain momentum. Therefore, we believe that companies will search for IT partners to implement solutions that foster digital innovation.

TECHNOLOGY

Read on to discover how Banking-as-a-Platform, Open Banking, RegTech, Artificial Intelligence and Big Data are revolutionizing the FinTech sector.

Read article

Technology outsourcing over ad hoc outsourcing

Nowadays companies struggle to get access to in-demand technical skills and recruiting the right talent has become a real challenge. The role of outsourcing companies has changed significantly over the years; nowadays we think of it as technology outsourcing rather than “last minute body leasing”. 2020 brought a shift towards digital transformation-oriented outsourcing, especially in areas enabling digital change allowing companies to obtain digital advantage on the market, such as:

• Cloud services
• Cybersecurity services
• DevOps and DevSecOps
• Data Analytics
• RPA and automation services
• Machine Learning and Deep Learning
• Artificial Intelligence

Trusted vendors over random providers

How about the trends in vendor management? In its “Top Priorities for IT leadership in 2021” report, Gartner predicts that IT leaders will have to focus on developing talent rather than hiring it and that risk management will be of high importance (especially in terms of data security and cybersecurity). We predict that in times of uncertainty, reducing third-party risk in IT outsourcing will be front and center. It is worth considering cooperation with trusted vendors and being open to collaboration with proven and trustworthy IT providers. We believe that focus on effective vendor management will become one of the most important outsourcing trends also once the COVID-19 pandemic is over.

Read more:

• Best practices in vendor management in a time of crisis
• Main trends in BioTech
  
  
  

  PROJECT MANAGEMENT

    How to work effectively with Agile nearshore teams? Get to know the benefits of Agile Nearshore Software development Read the text to find out more!

Agile outsourcing over strict planning

In 2020 many businesses learned that observing and reacting flexibly is a better strategy than planning and scheduling. We have been using this approach in the IT sector – our software developers successfully use Agile project management improving time to market. According to a Deloitte report, the future of outsourcing will be built on 3 pillars in the post-pandemic reality:

1) flexibility

2) responsiveness

3) digital adoption

Summary: main outsourcing trends in software development

One of the lessons learned in 2020 is that planning and predicting aren’t always possible. Many global companies were forced to reimagine their model of cooperation with external providers. We believe that the remote implementation of IT projects and Agile Software Development will be highly important in 2021 and beyond and the understanding of IT providers will further evolve in favor of Digital Transformation partners.

Nearshoring – seemingly non-financial advantages

Let’s recall the main advantages of nearshoring, usually mentioned just after the financial ones directly related to the price of the project.

EXPERT KNOWLEDGE

Do you plan to set up your office abroad?

Discover benefits of Build-Operate-Transfer model! Read the text to find out more!

• Access to already verified and motivated candidates. You don’t have to spend time on a complex recruitment process, which consists of several stages and which very often engages highly qualified specialists on your site. You can get people who are not only skilled, but also motivated, because your project is in-line with their professional development plan or it’s simply challenging in terms of the topic or the technology used. Moreover, you can take advantage of the available resources repeatedly. You don’t need to maintain a test team. You can benefit from a Testing-as-a-Service model every time such a need arises.

• Access to knowledge. You can choose between recruiting in-house and outsourcing… if you’re lucky. Sometimes you need expertise that is simply limited or even unavailable on the market. The requirements related to the project may vary, it’s not necessarily a defined scope. When it comes to new technological requirements, the importance of access to suitable resources can’t be overstated.

• Labor flexibility. You may need a software development team for a 3-month project. Taking the current situation on the labor market into consideration, it seems to be unfeasible to tempt highly-skilled professionals to get involved for three months, unless you can offer participation in Elon Musk’s Neuralink project or similar. Otherwise, it may be a real challenge to find skilled professionals who are available and interested in a short-term project.

• Innovation & competitive edge. In the past, outsourced teams were involved to deliver a repetitive job, a simple part of software development. But things have changed. The inability of the education system to respond to the needs of the labor market is a game-changer. The common talent shortage means that the vast majority of customers expect a different type of support. There is strong demand for experts, people who are prepared to bring solutions to complex problems to the table, or even more: to give the hallmarks of creativity and innovation. This leads to the next factor.

• A fresh approach to the problem. You pay for the resources delivered, but you get something more. By paying the hourly rate of a senior developer, you get his 10+ years of experience in that field. You gain the willingness and ability to solve complex problems that are not necessarily possible to solve based on the experience of an in-house team.

How to determine the value of nearshoring?

All the benefits mentioned above may be converted into any given currency, yet their value goes beyond money at the same time. The off-balance-sheet valuation takes into account a lot more than what is possible to easily sum up. What is the real value of money spent on nearshoring? Seems like it’s a question that can only be answered by the client.

There are many conditions affecting the value of the service in the context of the benefits received. The most important are:

• Whether you need high-qualified people for a given technology.
•  Whether your project requires an immediate team extension (every time the success of the project is at stake, the benefits may exceed financial matters).
• Whether you need support in one particular area, like testing or cloud transformation.
• Whether you need support within a particular period (e.g. 2-3 months).

Summary

It is natural that clients searching for a nearshoring partner ask for a project evaluation. In everyday life we all need to know what we are paying for. But in our private lives we don’t always put money first, and nor do we in IT nearshoring. Of course, choosing the appropriate pricing model in IT is a highly relevant and extensive topic, but the aim of this article was to show that the value of IT nearshoring depends on numerous factors. The real value of services provided by a nearshoring partner in terms of competences, fresh approach and time saved cannot be measured in an instance, but brings profit in the long-term.

Read also:

• Agile Project Management
• The best practices in IT nearshoring

Nearshore Software Development

As technology becomes an ever-increasing facet of business operations, companies need to expand their software portfolio, creating new applications that not only take care of client needs but also those of their own employees. Assembling in-house teams is not only challenging but also quite costly to foment and maintain. Nearshoring is a viable alternative that enables companies to bypass these challenges.

So, what is nearshore software development?

First, there is a need to distinguish between on-shoring, offshoring and nearshoring. In the former, a company decides to outsource IT development services to a company within the same national boundaries. In the second case, IT services are outsourced to a company in a far-off geographical location. In the case of nearshoring, skilled teams are outsourced from outside the boundaries within which the company operates but at a near enough geographical location. For example, your company could be based in Germany while the outsourced company is located in Poland.

PROJECT MANAGEMENT

  How to work effectively with Agile nearshore teams? Get to know the benefits of Agile Nearshore Software development Read the text to find out more!

The advantages of IT nearshoring

Nearshoring presents the best advantages of all three options in terms of comprehensive support for all your IT project needs at the least cost. With a specialized development team that is proximally close to your own country, you can achieve greater results in tech areas where your company isn’t fully competent, or if you completely lack a software development team. The fact that both countries are in close proximity means that cultural or legal differences between the two countries are greatly reduced.

With nearshoring, communication between the two assets is greatly enhanced because of the time zone difference which isn’t too drastic. On-site visits by the client are also a possibility with reduced travel costs compared to complete offshoring. While on-shoring might seem like the first option for most businesses seeking IT outsourcing, in truth it may prove to be quite costly in terms of the lack of technical expertise that you may experience within your own country and costly labor.

What Services Can a Nearshore Company Provide?

Software development encompasses a whole host of different functionalities which should be properly aligned with your company’s objectives.

Nearshore software development solves such problems as:

• scalability,
• migration,
• cross-platform use,
• security,
• seamless testing and deployment,
• and other performance issues at all project levels.

A full-stack development team moves beyond just writing typical lines of code and takes care of the entire client experience.

With a nearshore software development company, your business can leverage the power of custom software development and IT consulting on Software as a Service (SaaS) implementation of end-to-end client web and mobile apps, APIs, UI/UX interaction, Database Management System (DBMS) and secure-server systems, cloud hosting, data storage, etc. For entire teams, Enterprise Resource Planning (ERP) and Enterprise Mobility Management (EMM) can also be easily rolled out. Companies looking for a full digital transformation or in need of greater virtual connectivity with customers can benefit from the full range of IT consulting services including Quality Assurance and Business Intelligence. All these services and more are provided by JCommerce, one of the best Polish nearshore companies, recognized as a top Outsourcing Company in DesignRush latest ranking, as well as by dozens of satisfied customers from 19 countries worldwide. In 2020, JCommerce was ranked JCommerce 5th in the “Clutch Top Software Developers in Poland for 2020” report.

Why Poland

Why to outsource software development to Poland

• Skilled programmers
• Remarkable English proficiency among Polish developers
• Low hiring prices

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Thinking of Nearshoring? Think Poland

Poland is one of the best countries to seek nearshoring services, especially on Java-based frameworks. You should consider this country for your IT outsourcing needs for the following reasons:

• According to SkillValue 2019 report, the nation ranks third on its list of the best developers on the globe, a feat also endorsed by HackerRank. Poland has a highly specialized tech economy with some of the most talented coders in the world.
• A good number of the population speaks good English, making it one of the best fits for nearshoring for any country. According to EF EPI Report 2019, Poland is ranked Poland ranked 11th in English proficiency!
• It is strategically located in Central Europe, making the time zone difference with any other country work in the client’s favor.

Summary

As you can see, nearshoring helps beat the constraints inherent in off-shoring such as time zones, economic and social differences, and legal bottlenecks. You should definitely consider this option to build a fruitful relationship with your IT service provider.

Read more:

• Agile Project Management
• IT Service Provider – Trusted Technology Partner
• The best practices in IT Nearshoring

1. Looking for the Cheapest Price

Everyone loves a good bargain and saving money on outsourcing costs may seem a good move. However, hiring a team of unskilled developers will end up costing you more in the long run and the end result of your project will be nowhere near the quality you would have expected. We highly advise taking your time to research all the companies and looking through their case studies. We have already covered the cost of software development outsourcing for those looking for more guidance within this area.

2. Poor Planning

Rushing into the hands of the first outsourcing company is a huge mistake because you will have no idea what they specialize in. Before you even begin to search for an outsourcing company, you need to decide which sector of development the project is i.e. BioTech Software Development. Next, you will need to find the technologies used within the project, this could be PHP Development and/or Java Development and a whole load more. You need to be specific on how you want your project to be made and what it needs to do. Without planning, you could end up wasting a lot of time as well as money.

3. No Security

Approaching multiple companies regarding your software project is highly recommended but so many companies will discuss the complete project without any legal agreements. Non-Disclosure should be the bare minimum before talking about the plans and the requirements of your project.

PROJECT MANAGEMENT

  How to work effectively with Agile nearshore teams? Get to know the benefits of Agile Nearshore Software development Read the text to find out more!

4. Not Managing the Project

If the project was developed in-house, you would be managing it throughout the development lifecycle and this is no different to outsourced projects. You cannot expect the vendor to completely manage the project from start to finish. Frequent contact and task checklists are vital to maintaining a good relationship and keeping track of the project.

5. No Technical Instructions

Some companies will provide a brief description of work they want and the result will be completely different to what they were expecting. Before providing details of the project to vendors, have an in-house technical colleague read over the plan and ensure all aspects are outlined. For example, discussing the technologies that should be used in order for the in-house software developers to be able to maintain it. For example, if you have an in-house developer that specializes in Java but the project has been built in C++, it will be very hard to maintain the project in the future.

Conclusion

Mistakes are fairly common but the majority of software development companies will help you along the way. At Nearshore IT, we will ensure you have everything you need to take your project to the next step and provide a clear outline of work that we carry out. Get in touch with our team to discuss your project with a signed non-disclosure agreement and completely free of charge.

Read also: The best practices in IT Nearshoring

Build-Operate-Transfer – more than outsourcing?

Companies decide on IT outsourcing to expedite software development, lower their costs and complement their internal teams with unique competences, as well as expand their operations onto new markets. So far, many providers have delivered the services of single specialists or entire teams in either Agile, fixed or hybrid methodology. Nowadays there are more client engagement models which address companies’ strategies for developing their own scalable IT centers. The BOT model allows clients to set up an operational subsidiary of their company in a remote location with the support of a local provider. The estimated time taken to set up such an office of course depends on mutual agreements in the contract. Once the project reaches a satisfactory level of maturity within a specified time, the service provider transfers ownership to the client.

Read also:

• Agile methodologies
• Agile Nearshore software development

What is the BOT model?

According to Gartner:

“Build-operate-transfer (BOT) is a contractual relationship in which an organization hires a service provider to set up, optimize and run an IT or business process service delivery operation with the contractually stipulated intent of transferring the operation to the organization as a captive center. BOT, as a hybrid model, combines elements of the “build” option (i.e. “insourcing” or captive center) and the “buy” option (i.e. outsourcing; see also “captive centers”).

Before deciding on the BOT model:

If you are considering setting up a subsidiary of your organization elsewhere, you should consider the important factors listed below. This will help you to determine whether the BOT model will be a good option, as it addresses the following issues:

• Do you have access to competences and the necessary IT talents for your project?
• What is the size and complexity of the project?
• How important is risk sharing for your organization?
• What is your desired location? Do you prefer an offshoring or a nearshoring model?
• Which outsourcing model will ensure better data security and GDPR compliance? 
• What about intellectual property protection in the desired location?
• What is your expected set-up time?
• Does flexibility matter to your organization?
• What are the estimated initial and final costs of your project?
• Would you like to maintain your corporate culture in the remote location?

Elevate Your Application Development

Our tailored Application Development services meet your unique business needs. Consult with Marek Czachorowski, Head of Data and AI Solutions, for expert guidance.

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Read also: Location strategy in operations management

Phases of Build-Operate-Transfer services 

1) Build – the service provider sets up your office in a remote location. They equip the office and take care of IT infrastructure in accordance with security standards. Also, they recruit developers and establish the project team. At this stage, the knowledge transfer process takes place. This is also the right time to establish the legal regulations of contracts, take care of HR-related processes and aspects related to risk management. 

2) Operate – this stage includes operational management of your project. While you develop the core of your business, your IT partner takes care of issues related to project delivery (KPI & SLA, reporting, software development, quality checking and so on). This is the right time to introduce best practices and optimize project management processes. 

3) Transfer – at the final stage, the client takes over the project. At this stage, the provider hands over the management of the office and processes to the client’s company. The client can still take advantage of the support of the provider, and the cooperation can be continued under a new engagement model, if necessary. 

Advantages of the Build-Operate-Transfer model 

• Know-how – you gain access to the technological stack of the service provider and take advantage of the newest technologies in your project. 
• Shared risk – the contractual agreement determines the extent to which each side takes responsibility for particular aspects of the project.  
• Time to market – the BOT model expedites product delivery and thereby has an impact on time to market. The operational subsidiary of your company can even be set up in less than a year with minimal effort from your side. 
• Minimizing initial costs – thanks to BOT, you can lower the initial costs of the project related to the recruitment process and setting up the office. 
• Scalability –you can easily scale up teams and specialists at each stage and therefore significantly minimize costs. 
• Sense of bond with a company – employees feel a stronger bond with the company and identify more with its core values, as in BOT the project is carried out under the company’s brand. 
• Corporate culture – employees hired in your remote center follow processes you are familiar with and work in the same corporate culture. 
• New market – the BOT model is the right choice if you plan to enter new markets, and it is easier to do so if you start with a software development center. 
  

Summary

With BOT (Build-Operate-Transfer) model, clients are able to develop faster, deliver their products quicker and benefit from outsourcing possibilities at the same time. As we can see, risk sharing and time to market are becoming increasingly important. The BOT model addresses the needs of companies which are willing to develop operational centers within a reasonable time and budget.