Sunscrapers Team
6 December 2022, 7 min read
What's inside
- Intro
- Body leasing, also called team leasing
- Team extension and dedicated team
- Project team
- Contact us
- Read more
Intro
You can use different working models if you want to develop a solution with a software development agency. The differences between them might seem subtle at first, but they have a considerable impact on your service provider’s pricing, attitude, and added value.
Consider your project requirements and what your business needs first. Then choose the best working model for your company by following our comprehensive guide.
Body leasing, also called team leasing
What is it?
Body leasing (team leasing or body shopping) is a form of outsourcing where the software company acts as the intermediary between your company and the development team.
When to choose it?
Companies looking for developers who meet specific project requirements usually choose this cooperation model but don’t want to lead the programming process.
How does it work?
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The software company arranges job interviews to verify the candidate’s technical and soft skills.
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Candidates are sometimes verified during technical interviews carried out by the client.
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If successful, the developer starts to work for the client exclusively, usually at the client’s office.
Note:
The software company is the actual employer of the developer in question. That’s why it’s responsible for the administration, payroll, etc. This model operates on a commission basis.
Pros
Body leasing is probably the fastest hiring option, which makes it a great advantage for big companies. A software company usually employs skilled recruitment specialists who can quickly choose many interested candidates. Since software development companies can access many experts, they can move team members between clients and projects efficiently.
Cons
Choosing this working model is only profitable if your project is large enough to require a high number of developers, fast.
Another problem with body leasing is a matter of motivation and team spirit. Such employees may only have some in-house benefits or identify as team members. However, experienced service providers have processes to help such developers become integral to the team.
Is the team leasing a suitable working model for me?
Team leasing is a good software development model if your company is under severe time pressure and needs to add developers to the project as fast as possible. If flexibility is increasing and decreasing the number of team members is essential to you, consider team leasing. Also, if your company works on challenging projects and keeping employees in-house is a struggle, body leasing might be the way to go.
Team extension and dedicated team
What is it?
Team extension (team augmentation) and dedicated team software development models offer software developers who work full-time exclusively for one client but are hired by the software company.
When to choose it?
The extended team model helps to address the problem of insufficient staffing. Tech leadership and project management usually stay on the client’s side. The software development company provides the know-how and experience gained from other projects and encourages developers to demonstrate a proactive attitude.
- Learn more about team augmentation: The extended team model: here’s how to make it work
The dedicated team model is based on setting up a more autonomous team of developers. Tech leadership and project management are the responsibilities of the software development company. A dedicated team works full-time for one client exclusively.
- Read this to learn more about dedicated teams: Unpacking the dedicated team model + 3 best practices from our team
In both software development models, the agency takes care of employment issues such as benefits, office space, hardware, holiday leaves, work tools, professional development, well-being, and team building. Developers are usually more committed to the company because they work in an environment conducive to their progress.
How does it work?
Developers can be recruited for a specific project (team leasing) or from a company’s internal resources.
We believe that the second option offers a higher chance of hiring skilled and proven experts in software development.
At Sunscrapers, we have developed unique company standards for recruiting the most qualified and versatile developers.
Pros
A software development company that offers team augmentation services and dedicated teams usually provides added value based on past experiences and gathered know-how.
Regarding pricing, these software development models are almost always cheaper than in-house recruitment. While the initial cost may seem comparable to the salary of a local in-house employee, don’t forget that the provider pays for the workplace, equipment, benefits, administration, and other overhead costs.
Experienced software development companies also care for employee development.
All this is possible while maintaining flexibility in the recruitment process and scaling the team up and down to match the changing project needs.
Cons
What can become a problem with both team augmentation and a dedicated team? Remote cooperation. Communication or project management will require extra effort, but experienced providers have processes to streamline collaboration and keep all the project stakeholders in the loop.
Is a dedicated team or team extension a good fit for me?
Team augmentation and dedicated team software development models that are perfect for mid and long-term projects.
If you need committed developers to work closely on your project and value for money is an essential factor for your business, this is easily the best solution.
- To see how team extension works in practice, read this case study: How our team built key product features for the employee performance tool 15Five
Project team
What is it?
With project-based cooperation, you set a goal to be accomplished by the team within a specified time and budget.
When to choose it?
This working model works best if you want to outsource software development completely and let another company take care of your standalone project.
For example, an enterprise organization often outsources Proof of Concept or Minimum Viable Product projects to other companies because their internal resources are engaged in other, more mission-critical activities.
How does it work?
You can assign the task to a software development agency with multiple competencies when you know what you want. Such projects are usually independent of your daily operations.
Cooperation costs are based on fixed-price or time and material pricing models.
Pros
The company will provide added value to the project through its experience of working with other companies on similar solutions or in the same industries.
The company can offer on-demand availability and access to various unique competencies such as product development, UX/UI design, web or mobile development, IT consulting, and other parts of the software development process.
Cons
The major drawback of this working model is its price, which is often higher than other solutions. Developers may be assigned to a project for short, irregular periods. The software development company is carried out by the software development company alone, generating more costs. The provider has to engage more developers without settling into long-term cooperation, which might be pricey.
Is the project teams model for me?
The project-based model works best for small projects. It’s a good option if you’d like to work with a partner with broad technology competencies and you need flexibility in choosing them.
Also, if you’re looking for specialization in specific areas, you can choose a software company based on its know-how, quality of work, and relevant experience.
Finally, the project model is an excellent solution if you don’t have your internal IT teams, and outsourcing is the only option.
Contact us
Get in touch with us if you need help choosing a suitable working model for your business. We help companies from different industries meet their technology needs with careful planning and choosing the most appropriate working models.
Reach out to us at hello@sunscrapers.com
Read more
To help you learn more about IT outsourcing, we prepared a series of helpful guides:
- What are the benefits of outsourcing IT services?
- 6 tips for coordinating internal and external development
- How to manage agile collaborations with challenging clients
- How company culture impacts outsourcing partnerships – and what you can do about it
- How to outsource R&D projects
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