Software development: choosing the right model is the key
Businesses are investing in new products and platforms, helping them on their digital transformation journey. It allows them to expand their audience, streamline communication and data processing, and improve their customer experience in both B2B and B2C scenarios.
Before investing a colossal sum in the development of your next web or mobile application, it is essential to choose the right software development strategy. This can be difficult, but first decide on the specific requirement before deciding which type of mobile app development to select.
Selecting and allocating resources for a project can also be challenging, so it’s important to know exactly what the end product is that needs to be delivered within a certain budget. Businesses need to find the most cost-effective model that will provide the best results for capacity planning as well as project management planning. Speed and quality are also important factors.
Selecting the right application development model and employing a team of expert software developers is key to the success of any project. There are generally three models used in the industry to choose from; Management of project delivery, team augmentation or hiring of professional resources.
Managed Project Delivery
With a managed project delivery service, the software development company could manage the entire project through its project management team. This means customers don’t need to employ in-house developers or manage a remote development team.
With managed services, customers often don’t even know who is working on their project or what the developers are doing and what decisions are being made throughout the process.
This means that the development house or service provider designs, builds and delivers the entire software project and will be responsible for delivery against the agreed requirements.
Its led team takes care of planning, design, development, quality assurance and project or product management. Agile delivery methodologies will often be applied when delivering the project to the client.
On small projects, a developer would be hired to develop a specific application with a fixed set of requirements, and would be paid at the end of the project.
There is often a misunderstanding between scaling up and delivering managed projects. The main difference is that the raise is paid based on time and materials, whereas a managed project approach is about a fixed set of deliverables. Some clients may apply a blended approach depending on the composition of the team and their existing internal capacity.
Augmented staff could be used to write lines of code for a specific application and they would be paid hourly based on the work they do, giving the customer the flexibility to modify the backlog as they wish.
With the increase, the development house provides in-house experts to help the client’s internal teams deliver the project and the roles may vary depending on their needs. Sometimes the development company will allocate a product owner who will then manage all resources for both teams, or they will place some resources to support delivery.
This model helps expand a team by supplementing existing staff with additional skills. It is a flexible outsourcing strategy that allows companies to hire application developers anywhere in the world.
They can choose from a long list of developers who meet their needs and can expand or contract their augmented team whenever they want. This allows them to add skilled technical resources to their in-house application development team, short or long term.
The biggest advantage is that these resources are provided and used by the application development company, eliminating the cost and responsibility of permanent staff.
Professional resources or ETP
With full-time equivalent (FTE), the application development company provides the client with a dedicated full-time equivalent resource. This is usually a development resource, on a long-term contract and usually 12 months or more.
They are managed directly by the client’s team and are part of the internal team. This can also evolve into building full off-site development teams for clients.
FTE is used as a unit of measurement and is often used to convert hours worked by a number of part-time employees to hours worked by full-time employees. It gives an indication of the number of full-time employees required by a business or project.
It’s a useful tool for determining potential labor costs, especially when embarking on a major web development project. It helps companies understand the number of full-time workers they would need to complete a certain task, as well as the estimated salaries.
It can be used to measure staffing needs and planned hours. By defining the FTE required, one can measure the scope of the project and also identify the number of people required. This helps resolve the confusion around hours and staffing.
FTE is a fantastic metric for long-term projects, it provides clearer forecast plans. It’s a measuring stick for calculating hours to work, it just focuses on the scope of the project and then breaks it down into smaller tasks. It calculates the number of hours and skills needed to do the job.
FTE allows project managers to hire specialized resources so they don’t waste a full-time resource on a specific skill set. It also provides transparency when one needs to hire part-time resources for short-term projects.
This model minimizes risk because resources are contracted for specific tasks. Businesses can now streamline budgets by using resources for specific tasks and only for the time needed to get the job done.
Digital solution providers like Bluegrass Digital work with companies of all sizes, including funded start-ups, mid-sized and large enterprises around the world in various sectors of financial services, healthcare, manufacturing and FCMG. He must apply these models to the respective projects.
For startups, Bluegrass often works in a team augmentation scenario where it can collaborate with the existing technical team to provide more capacity or specialized skills such as React Native for mobile app development.
The company has grown as a project delivery company and continues to deliver many software projects to its customers. Over time, he extended this to both team growth and FTEs. He also works with clients when he needs to combine each of them with different projects or business stakeholder requirements.