Outsourcing and Outstaffing are the two most popular practices that are widely approved and preferred by businesses. Such models help to fast-track the development process and also save a lot of time & money. Both the models allow businesses to utilize the valuable resources and experience of the employees working from any part of the world.
The approaches are gaining traction with many companies across industries, and such models are the best for specific domains, and the IT industry is one of them. So keep reading to know more about Outsourcing and Outstaffing practices and effective tips to find the best fit.
The Difference between Outsourcing and Outstaffing
People often assume Outsourcing and Outstaffing are the same things, but they are not.
Software Development Outsourcing refers to a model where a company hires workers from another company to get specific tasks done. The IT industry can be developing an app, a website, software product, etc. Often, Outsourcing means that the contractor will carry out the entire scope of work and not just one or two tasks. For instance, if you want to develop a mobile app, they will deal with everything, from technical requirements to maintenance and final checks.
If you choose to outsource, you will get a project manager assigned to your project. They will interact with you and also handle the entire team.
On the contrary, Outstaffing is a type of model in which a third-party worker or a team performs your work. The third party is officially employed by another company but performs the work for you. In Outstaffing, the customers control the entire scope of work, and they have direct access to the outsourced team. When you outsource, you have to manage the hired team and your own; however, the Outstaffing team will handle the payroll.
This approach works best when you already have a development team but lack some expertise required for a particular project.
Outsourcing vs. Outstaffing: Looking for the Best Fit
There is no one-size-fits-all, and no one can tell you what to opt for. Every situation is unique and requires consideration. To develop the best fit, you need first to evaluate the available resources at your disposal.
If you don’t have a software department in your company and have enough funds to accomplish your project, Outsourcing is the option for you. On the contrary, your team doesn’t have enough strength, and you can seamlessly manage a third-party team and yours to complete a project, outstaffing is the best choice for you.
When deciding between Outsourcing and outstaffing, you need to be aware of the general principles on which the models work.
How does Outsourcing work?
When you are required to build cooperation with your outsourcer, a universal algorithm is followed.
- Draft and allocate the required budget.
- Look for an experienced and competent outsourcer.
- They will need a product requirements document that encompasses all priorities concerning your needs.
- You will have to brief the outsourcer about your requirements and the details of the project.
- You should schedule regular meetings with the team working on your project to know the progress made and discuss the modifications that may arise.
- In the end, you will have to evaluate the results and give feedback on the services availed.
How does Outstaffing Work?
When you choose outstaffing, a different set of activities are performed to obtain the desired results.
- Just as you hire candidates, you need to hold a selection campaign to look for IT experts who would be a great fit.
- The final project requirements are to be articulated to make sure that all the employees proceed together.
- Furnishing the required software to ensure smooth workflow.
- If needed, the onboarded team is to be trained and then provided with a workload.
- Monitor the performance of the outstaffed team.
- Provide regular feedback on how they are performing and the areas that need improvement.
- Evaluate the quality of the deliverables and suggest necessary alterations.
Make Outsourcing and Outstaffing Great (Always): Useful Cues
Start with Goal Setting and Scheduling:
Whether it is Outsourcing or outstaffing, you need to determine the goal of your project. You need first to know which model you will choose. After hiring a team, you can then communicate your objectives to the vendor to get started. It would help if you then supplied them with a complete list of the details of your project. With more accurate information, they will let you know the cost and duration of the project.
Prioritize Finding the Right Vendor:
When picking vendors for your project, you need to consider a few essential points, the competence domain of your vendor, their portfolio, past client’s reviews, etc. Other crucial considerations include language barriers, timezone, work ethics, cultural background, etc. This will narrow down the options for you to decide on the best company.
The lowest bid is the dirty word:
It may sound tempting, but you should disregard the vendor who charges the lowest rates. You cannot expect to get quality at thrift prices; hence, such a decision may make you compromise on the key performance indicators of your software product.
Rule out a fixed-price offer:
In the beginning, if you know how much you will have to pay, you will have a sense of control and safety since all upcharges and financial risks will be handled by your outsourcer only. However, if you relieve yourself from all the worries, you may face other concerns. For instance, in the fixed cost, the vendor may keep a risk margin along, and hence you end up paying more. Also, if the sum is stipulated initially, the developers will limit their creativity and try to fit in the budget with no improvements.
A contract is a must-have:
The best recipe to get financial, technical, communication, management, and all possible moments regulated, signing a contract is a must. This document will cover all necessary details of the project and will be signed by both parties.
If you cooperate with a vendor for the first time, we recommend starting with an assignment of smaller scope. If you are satisfied with the results, you can continue obtaining the benefits of software development outsourcing.
Correlate payment to milestones:
Don’t make the entire payment upfront. A sensible move is to make an advance payment of one-third of the final amount and then divide the remaining amount to complete milestones. In this way, they will also work towards meeting deadlines.
Coach the in-house staff:
When you choose outstaffing, this tip is essential. When you explain the potential benefits to your regular employees, they will accept, and the resistance of introducing new temporary employees will be reduced. It further helps to enhance the efficacy of the workflow.
Communication is essential when cooperating with remote teams. If it fails, the project may be defeated. To prevent such mishaps, you should establish effective communication channels with which both sides are comfortable.
Provision for a follow-up:
It is critical to integrate a support clause specifying the possible cooperation of the parties after the completion of a project. By doing so, you will not have to look for another vendor to get the required fixes done or get something corrected after the product launch.
Whether you choose Outsourcing or Outstaffing, you will use the workforce outside of your company to make the job—the main difference with who manages the team. You are required to make a thoughtful decision and weigh all the pros and cons before choosing a business model for your project. Gauge your requirements thoroughly and look for high-quality, reasonable services.
Image Credit: provided by the author; thank you!
Low-Cost Business Ideas for 2022
Successfully running your business in 2022 is not easy due to the new norms of people’s lives. The Covid-19 pandemic has changed the consumption of goods and services. If opening an offline store or restaurant just a few years ago was a profitable idea, now their owners can incur heavy losses.
Since most startups in 2022 are going online, you need to think about starting your business on the Internet. If you decide to become an entrepreneur and have the opportunity to invest, but there is no modern idea, you can take advantage of the options that someone is already successfully developing.
What Business is Popular in 2022
Thanks to the Internet, anyone can become a business owner. A startup on online platforms is an excellent idea for those who like flexible working hours and complete control over their income. This option of earning money is more resistant to crises and outbreaks of pandemics.
According to Statista, in 2021, online shopping exceeded $4.2 trillion globally, and social media has become the backbone of many businesses looking to build brand awareness.
Before preparing to launch for a startup, consider the following factors:
- Expertise. An entrepreneur needs to learn new skills and knowledge about a niche for any successful startup.
- Investments.If you don’t have enough money to invest a significant amount in a project immediately, think about how to raise capital for your business (investors, crowdfunding, business angels, grants, etc.).
- Scaling. To attract new customers and profit, the company needs to grow and develop constantly. Consider a long-term scaling plan and remember the hassles that can happen while you work.
- Personal interests. Consider whether you will still be passionate about the business in the long run.
The cost of starting a business decreases every year, which is especially important for an online business; to start, it is enough to have a computer with an Internet connection. The most challenging part when developing ideas is the problem of choice. To be successful, you need to deal with products in strong demand. A business should be run by a person who enjoys doing it.
Dropshipping is one of the profitable business ideas if you want to make money remotely online. Unlike a regular online store, you don’t need products to run an e-commerce site specializing in dropshipping. Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 billion before 2025.
This business is considered very affordable because to work, you only need to launch your website and access the directories of wholesale suppliers such as AliDropship or SaleHoo.
All you have to do is partner with wholesalers and manufacturers to sell their products under your brand name. The buyer purchases on your website, informs the supplier company about it and sends the order to the client. The dropshipping scheme for an online store is straightforward:
- The seller selects products from the supplier’s catalog and uploads them to the trading platform (online store, landing page, marketplace).
- Adds a markup to the supplier’s price.
- Promotes products and finds a client.
- When a client places an order, the seller communicates this information to the supplier.
- The supplier packs the product and sends it to the customer.
To quickly become a leader in this industry, you need to stand out from the competition. Instead of a thousand different products, you can narrow your niche and specialize exclusively in one category: clothes for children, home decorations, or more.
Food Delivery to Offices
Food delivery is not a new but trendy business idea. Fundera says that the online food delivery industry has generated more than $26.5 billion in 2021. While large companies set high prices for dishes, newcomers have a chance to gain customer loyalty at affordable prices.
Since there are a lot of office workers and not everyone can afford to go to a cafe for lunch, you will quickly gain a loyal audience and strengthen your position in the market.
An aspiring entrepreneur does not need a lot of investment. You can cook the food right at home and use your car to deliver orders. An important thing to invest in is a website or an application to tell about your services and present all the menus.
To minimize your costs, before launching a full-fledged software, you can use an MVP, with which you will test the main functions of the app and attract the first customers. Thus, potential buyers can see the available dishes and order them online without calls. They can choose a specific time for which you need to deliver food and even leave a particular comment on the order.
Also, your customers will pay for services using the app, saving you from cash. By allowing feedback on the service in the software, the delivery owner also receives feedback from the person and builds a loyal audience. Your own application will help you tell the world about yourself and take a leading position among those who do not use digital technologies yet.
Opening your own online store is the most obvious idea for an online business. The following online stores can be called relevant in 2022:
- children’s goods;
- ecological and natural versions of everyday products;
- sporting goods;
- clothing and footwear;
- home textiles;
- boxes with surprises.
This startup idea is not as simple as it seems at first glance, but it will not require significant investments at the initial stage with a competent approach.
First, you need to decide on your niche. Purchase several copies of each item to understand what will be more in demand and what is better to remove from the catalog altogether.
Next, you need to study your target audience. For example, selling home furnishings to teenagers is useless. The older generation is unlikely to be interested in fashionable gadgets, and residents of the city will not appreciate goods for the garden. The main characteristics of potential buyers are gender, age, place of residence, and financial situation.
The critical step is the selection of suppliers. To avoid getting caught by scammers, try to find out more information about them and look at the goods live.
Implement enterprise resource planning software to customize and automate the process straight away. ERP will integrate and manage finance, order supply chains, user operations, reporting, manufacturing, and human resources. With this software, you and your employees will be able to plan deliveries and improve the quality of customer service. The use of digital technologies in business will help increase productivity and store all data in secure cloud storage.
Why Digitize Your Business in 2022
Without developing a digital transformation strategy, no modern business in 2022 can exist in the long term. Due to the pandemic, everyone observes a rapid acceleration of trends that previously gained popularity very slowly. Such resources allow you to save money, increase profits, and attract new customers.
The required minimum for any company now is a website and accounts in social networks. Brands looking to take one step closer to their customers can also develop a mobile app/chatbot and use other promotion channels.
A more thorough digital transformation involves working with clients and deep business processes: production, personnel management, and internal communications. To implement such a transformation, you need to carry out serious work, which can be based on Big data analysis, cloud and mobile services, and agile development.
Before embedding digital technology in your business, think about what exactly you and your customers need. You should not chase trends and use that software that cannot help optimize processes and establish communication with customers.
Image Credit: Karolina Grabowska; Pexels; Thank you!
5 Ways To Grow Your Business With Technology
“I’d like my business to remain stagnant.” No entrepreneur, owner, or CEO ever uttered those words. You can be sure none ever will, either. That’s because corporate growth is always an overarching goal for any organization. Growing your business comes with its challenges, of course, like figuring out which steps will make it easiest for you to scale and expand.
One thing’s clear: You need to develop a clear-cut growth strategy. And technology needs to play a huge part in that strategy. After all, we’re living in a primarily technological world. If you’re not making the most of the tech at your fingertips, you regularly miss opportunities to strengthen your brand’s position.
Where can you start? Below are a handful of ways that you can leverage technology to grow your business’s footprint. Try these recommendations, whether you’re a micro startup or a mid-size corporation headed toward a Fortune 500 future.
1. Automate repetitive manual processes.
Is it worth automating all the mindless to-dos in your business in order to grow? Yes, especially if you do the numbers.
McKinsey research studied the ordinary tasks of several occupations. They concluded that around 33% of the tasks of six out of 10 jobs could be automated. For example, let’s say your company is modestly sized at 50 workers. If your staffers work a traditional 40-hour week, 30 of them are frittering away 13 hours. In other words, you’re losing nearly 400 hours weekly to pay employees to handle repetitive duties.
To be sure, not all tasks can be automated. However, you owe it to yourself to find ones that can. For example, is your finance department team processing payroll or inputting invoices by hand? Then, invest in software to remove the tedium—and reduce the chance of human error.
Check out your sales and services processes next. Do your salespeople or support agents have to cut and paste information? Are they forced to switch between two or more programs that don’t communicate? Look for ways to integrate those systems to free up everyone’s valuable time so they can concentrate on growth-based responsibilities.
2. Strive to make customer first impressions stickier with tech tools
Tons of articles highlight the importance of growing your business by retaining customers. It’s true that retention tends to be less expensive than acquisition. Nevertheless, you can’t hold onto your customers until you get them in the door. So put a premium on delivering impeccable first impressions that urge people to stick around.
The right type of technology can assist you in wowing your best leads via an unforgettable customer experience. Take first-time logins, for instance. Okta reports that asking a visitor to set up an account turns off 37% of prospects. So what can you do to overcome this friction point? First, you can rely on social logins to streamline the process. From the customer’s viewpoint, being able to login via already-existing Facebook, Google, or credentials is effortless. From your company’s viewpoint, you can begin marketing to yet another buyer or potential buyer.
A strong CRM can be equally beneficial to moving leads into and down your sales funnel. Once you’ve captured prospects’ data through a social sign-in, personalize future communications like emails, texts, and DMs. Only two years ago, McKinsey found that 80% of retail buyers valued the personal touch. So whether you’re in retail or not, strive for individualization to keep new buyers coming back.
3. Bring a virtual assistant to your team.
You may not have the funds to hire live customer service representatives 24/7. That’s okay. Chatbots can give your organization the ability to offer visitors self-service, even during non-business hours. And they can do it for a fraction of what you’d pay a live agent.
Not sure you’re ready to put your faith in a chatbot? A New York Times article explains that today’s AI-fueled chatbots are only getting smarter. They’re also gaining widespread acceptance, with chatbot growth poised to hit around 15% in 2022. One Gartner executive even predicts that a genuinely conversational AI chatbot program is just around the corner.
Already, some chatbots are inching toward humanlike responses. A University of Florida experiment found that about a third of people could not tell a chatbot from a real person. Consequently, there’s little harm in exploring the wide world of chatbots for your company. Your chatbot doesn’t have to be perfect to be appreciated by customers with questions who want fast answers.
4. Investigate tech solutions to tap into your data.
Tremendous amounts of data flow into your company. Yet it would be impossible for you and your team to make sense of it all. Does that mean you have to give up on finding a way to unearth your data’s insights? Not at all. You just need a tech-based data mining solution.
You have plenty of choices regarding software that can analyze data and find trends. First, though, determine where your data exists. Is it in your CRM? Or a legacy piece of software? Once you know where to find your data, you can search for highly-rated data mining systems.
Be aware that some data mining programs have been developed with specific industries in mind. These can include healthcare, finance, e-commerce, or manufacturing. It never hurts to see if something’s already been created for your sector.
5. Invest in a branded mobile app.
Mobile app use continues to rise. By 2025, one Forbes writer notes that the app market will approach $1 trillion. So why, then, doesn’t your brand have an app of its own?
This is the question a lot of business leaders are asking themselves. Offering customers the chance to interact with your company through an app makes sense. Not only does it give them an immediate connection to your organization, but it simplifies the purchasing process. At the same time, it helps buyers feel that they’re getting special treatment as you deploy push notifications and exclusive offers.
How can you make the most of your app once it’s been developed? First, make sure your customers know it exists. Lots of brands have apps that get very few downloads. The issue isn’t necessarily the app itself. It’s that they don’t know the app is available. Therefore, be diligent and consistent about talking up your app to drive higher usage and conversions.
You’re not alone if you feel that growing your business isn’t happening as fast as you like. Most leaders wish that they could get to the next plateau faster. One method to add a little speed to the process is to lean into the technologies you’re not using yet. Then, with the right combination of tech tools, you should begin to see a positive difference in your numbers.
Image Credit: Artem Podrez; Pexels; Thank you!
The Developer’s Guide to Mobile Authentication
Mobile app developers must ensure that the mobile app is effortless while keeping internal information protected and secure. Complex or repeated authentications can be frustrating for your mobile app users.
This article discusses various means of simple and secure mobile authentication, ensuring frictionless UI and UX of mobile authentication screens and data security.
What is Mobile Authentication?
Mobile authentication is a security method to verify a user’s identity through mobile devices and mobile apps. It caters to one or more authentication methods to provide secure access to any particular app, resource, or service.
Let’s look at the various mobile authentication methods developers can utilize depending on their business use case.
Mobile Authentication Methods
Email-Password and Username-Password are common types of password-based authentication. While utilizing these methods, developers should consider setting secure and robust password policies in their authentication mechanism, such as:
- Mandatory use of symbols and numbers
- Restricting the use of common passwords
- Blocking the use of profile information in passwords
These measures ensure better quality passwords and prevent user accounts from brute force and dictionary password attacks.
Limitation: Passwords are hard to remember, and typing in passwords on a small mobile screen degrades the user experience. Hence, developers must use authentication that does not compromise the security postures yet provide an appropriate user experience.
Patterns and Digit-based Authentication
The user must set a pattern or a digit-based PIN (typically 4 or 6 digits). Developers can utilize this as an authentication factor for their mobile application, as this authentication method is faster and more comfortable than entering passwords on a mobile screen.
Limitation: Both patterns and 4 or 6 digits PINs are limited. Also, users tend to use simple patterns and PINs like L or S patterns and 1234, 987654, date of birth as their password.
Users use an OTP received via SMS or email to authenticate themself. Thus, users do not have to remember a password, pattern, or PIN to access their account. At the same time, developers don’t have to implement password-based security mechanisms.
Biometric authentication uses unique biological traits of users for mobile authentication. Some common examples of biometric authentication are fingerprint scanning, face unlocks, retina scans, and vocal cadence.
Developers can implement pre-coded libraries and modules to enable authentication through mobile components like the finger scanner, camera (for facial recognition), and microphone (for voice-based identification).
It acts as a single sign-on authentication mechanism. Developers can implement this in mobile apps to use users’ login tokens from other social networking sites to allow access to the app.
Also, with social login, developers don’t need to worry about storing passwords securely and managing the password recovery option. It helps the user sign in to the mobile app without creating a separate account from within the app, hence increasing the user experience (UX).
User Interface (UI) and User Experience (UX) in Mobile Authentication
Login and registration screens are a gateway to your mobile applications; if they are a hassle, the user might not bother using the application. Thus, developers should pay a lot of attention to these screens regarding user experience and usage.
Here are some quick tips for mobile authentication screens:
- Simple Registration Process: Lengthy registration forms are a big no-no. Brainstorm essential information for creating an account via mobile application and only include those fields.
- External or Social Login: Allow users to log in via external or social accounts. This way, users don’t have to remember another password or credentials for your app.
- Facilitate Resetting: Include forget password on the login screen for good visibility and reach if the app provides password-based login. Also, setting the new password should be seamless and fast.
- Keep Users Logged In: Not logging out users on app close is helpful in a good experience. However, this depends on the type of app you offer. Developers should include MFA for better security if the app stores sensitive information or skip the stay logged-in feature altogether.
- Meaningful Error Messages: Errors and how they are handled directly impact user experience. Thus, developers should keep error messages meaningful and clearly state what went wrong and how to fix it.
Tip: Customize the mobile app keyboard for the type of input field. For example – display a numeric keyboard when asking for a PIN and include @ button when asking for an email address.
Considering the above points would result in a great and secure user experience for your mobile app users. However, if you feel executing these guidelines would take ample time, be informed that CIAM solutions are available in the market to handle all these requirements for you.