There are different working models in software development. Differences between them might seem subtle, but actually they vary in terms of price, attitude and added value. Think about what you need and choose the best one for your company with our comprehensive guide.
Team leasing, body leasing or body shopping
Team leasing, which is also called body leasing or body shopping, is form of outsourcing conducted by a software company. Software company is an intermediary between client and developers. Such firm is dynamically looking for developers to meet specific project’s requirements, but it doesn’t lead the programming itself. Software company arranges two job interviews. First one verifies candidate’s soft skills and is conducted by a software company. Second one is a technical interview carried out by the client. Signing a contract between software company and developer happens only after client’s approval. Then, a developer is passed on to exclusively work for a chosen client, usually in client’s office.
What’s interesting is that an intermediary software company is an employer of a developer. That is why it is also responsible for administration and payroll of this employee. Salary, leave – all is handled by a software company. Usually a software company operates on a commission basis.
Body leasing is probably the fastest option, which makes it a great advantage for big companies. A software company usually employs a lot of recruitment specialists, who can easily and rapidly choose a bunch of interested candidates. And since it has the access to so many developers, it is also able to move team members between different clients and projects quite easily. What’s also important is that there is a lot of companies that do such intermediary services, so their prices should be rather attractive.
Choosing working models like team or body leasing is only profitable when the client’s project is big enough. Huge companies need tremendous number of developers and they need them fast. This may be associated with the considerable threat – hiring low quality employees. The biggest issue here is the speed of recruitment process itself. It is so rapid, that negotiations with developers are mostly based on giving them higher salaries, not checking their skills. Software companies don’t conduct technical interviews, which doesn’t help either. Another problem with body leasing is a matter of an identification with a company. Employees don’t feel connected to anyone. They don’t have all in-house benefits and very often they don’t identify themselves as a team members, which can be an issue with building a strong, devoted team.
Will team leasing work for me?
Team leasing is a good option if your company is under the pressure of time and cares more about the amount of developers and less about their quality. If flexibility in increasing and decreasing your team’s members is extremely important to you, you should consider team leasing. Also, if your company works on difficult projects and keeping employees in-house is a struggle – body leasing might be the way to go.
Team augmentation and dedicated team
Team augmentation and dedicated team working models are based on developers that are working full time for a client, but are hired by a remote software shop that specialises in nearshoring or offshoring solutions.
Team augmentation helps with insufficient manpower in a client’s company. Tech leadership and project management is usually on the client’s side. Software shop is providing know how and experience gained from other projects and encouraging developers to demonstrate proactive attitude.
Dedicated team, on the other hand, is about setting up a more autonomous group of developers. Tech leadership and project management are on a software shop’s side.
In both of these models, software shop is taking care of all employee’s benefits, like office space, hardware, leaves, worktools, but also professional development, wellbeing and entertainment. Developers are usually more committed to the company, because they are working in an environment conducive to their progress.
Developers can be either recruited for a specified project, like in team leasing, or chosen from the internal resources of a company. We believe that there is a better chance to access skilled and proven experts in software development with the second option. That’s why at Sunscrapers we have our own, independent standards of the recruitment process, so we can hire the most qualified, yet versatile developers.
Software development company that offers team augmentation and dedicated teams, usually provides added value to its services based on its past experiences and gathered know how. When it comes to price, dedicated team or team augmentation are almost always cheaper than in-house recruitment. While the initial cost may seem comparable in relation to a salary of a local, in-house employee, web development company pays for workplace, equipment, benefits or administration. It also cares for employees’ development and entertainment, making them more productive and harmonious. All of this is possible while maintaining flexibility in the recruitment process.
What can be a hurdle with both team augmentation and dedicated team is remote cooperation. Communication or a project management will require some extra effort. Another problem is difficulty in carrying out a project that requires a very broad range of technologies. Software shops usually specialise in particular technologies in contrary to big recruitment companies. Software shops are experts in specific areas, for example Python development or mobile apps production.
When it’s a good option?
Team augmentation and dedicated team models are perfect for medium and long-term projects. If you need committed developers to work closely on your projects and value for money is an important factor – it might be the best solution for you.
With project based cooperation you set a goal to achieve in a specified time and budget and a software shop handles the delivery. This working model is a great decision when you need a web development shop to comprehensively take care of your standalone project. When you know what you want, you can assign everything to a software shop with multiple competences. Such projects are usually completely independent from your daily operations. Cooperation costs are based on fixed fee or time and material – we’ve mentioned differences between them in one of our previous posts. Are you doomed to fail your IT project? Hourly rate vs. fixed price discussion
Software shop provides added value to the project through its experience. Thank to previous projects and ability to upskill, web development company is able to deliver a requested solution. Software shop takes care of everything. It offers not only on-demand availability, but also access to a range of specialties: design, web/mobile development or consulting. All worries are removed from client’s shoulders with no obligation of long-term cooperation.
The major drawback of this working model is its price. Usually, it’s higher than other solutions, but there is a reason for that. Developers may be assigned to a project only for a short, irregular periods of time. And since project is held completely by a software shop, it generates more costs. Software shop has to engage more manpower without long-term cooperation, which might be pricey.
Is project model an option for me?
Project based model works best with short and medium-term ventures. It’s a good option if you would like to work with a partner with broad competences and you need flexibility in choosing them. Also if you are looking for an exact specialisation you can choose a software shop basing on its know-how, quality of work and relevant experience. Finally, project model is a great solution when you don’t have your own IT competences and outsourcing is the only option.
Considering your true needs is extremely important while choosing the best working model for your company. If you have any questions, leave a comment below. If you need help in choosing the right working model for your business – contact us!