3 Main Types of Effective Collaboration in Crysberry: Which Best Fits You?
How can you as a business owner understand what exactly you are paying for when outsourcing your software development to the third party?
How are you supposed to pick the best-fitting collaboration type and payment method?
And which type, after all, will best meet your business needs?
If you’re struggling with these questions, do not worry: you are not alone. All those business owners out there that start working with outsourcing companies for the very first time, ask the same questions.
You need to make a wise decision, to weigh all the pros and cons before signing a contract. And we get it!
That is why to help you make the right choice for your business, we have decided to explain what each type of collaboration offered by our company means, what advantages and disadvantages it has for your business and how you should pick the most suitable one for your particular product.
So, read on if these are the questions you want answered!
Types of collaboration
1. Projects model
It’s a perfect collaboration type for small short-term projects with a defined end product in mind.
It all starts with a clear idea a business owner has for his future venture or a list of functional specifications previously developed for this particular project.
First, the scope of work document is being developed. And in case an entrepreneur already has it, our company offers him our help with its processing and adaptation.
We define all the deadlines, describe the functionality that will be realized in this project within the set budget.
And once all these points are agreed on both by our management and our client, the development team gets down to business. The product development and management take place inside our company. This means that a client does not need to spend hours supervising the project flow: it is all taken good care of.
However, if a business owner decides to add some extra functionality to the project along the way, he will have to create an additional agreement and have extra funds dedicated to it. As long as the functionality goes beyond the Definition of Done agreed on in the first place, our company together with a business owner create an additional agreement for those specific features.
Fixed Cost meaning that our Project Managers/ Business Analysts and a Team Lead of the chosen technology create a scope of work estimation for the developers. No unexpected expenses in the end: our company will work within the set budget only.
Set; Defined by the business owner and the outsourcing studio based on the scope of work and given functionality.
- This collaboration type isn’t the best choice for an entrepreneur that does not have a specified vision of the end product due to fluctuations in the market.
- Therefore, those who are only getting their feet wet in the industry and want to add changes after each iteration and experiment with the features and functionality should consider one of the offers below.
- Besides, large-scale projects should also consider a different way of development outsourcing, since all the documentation and the software development itself might take up a lot of time. As a result, the market changes before the product gets there. And that’s how a great idea finds no recognition out there since the end product is no longer relevant or interesting to the target audience.
- Medium and small-sized businesses
- Clients that know the exact product they want to get in the end
- A clear understanding of the end product
- Elimination of potential risks thanks to the proper Business Analysis, professional estimation, and correct methodology choice
- No need for the client’s active involvement into the development process
2. Dedicated team
The second type of collaboration is called “Dedicated Team”. As you understand from the title, this type of collaboration means that a client gets a team of developers that are focused on one product striving to deliver impressive results for the benefit of the company outsourcing the software.
Practically it means that the client supervises the whole development project while the outsourcing studio provides him with the required staff.
Just think about it: you get the whole team of highly-qualified professionals to work on your project without having to deal with all the pains of recruitment, payroll, and employee processing.
To put it short, when this type is chosen the development team becomes one whole with the company of the client meaning that they work under company’s supervision at all stages with common goals in mind.
It’s almost as if they hired an in-house team only without having to worry about the search and employment process of the perfect candidates.
Besides, the time limits are established by the company, and the development team might be outsourced both for long and short-term projects.
And should we not have enough people on staff to cover the business needs of the client, the responsibility, and risks of hiring the right specialists are entirely on the outsourcing studio.
However, the involvement of the outsourcing studio is quite minimum. Once the team is formed, the client is in control of the whole development process.
Fixed staff month payment agreed on in the contract
Defined by the client; Collaboration can be both short and long-term
- This model is not suitable for new businesses, as the Managers must know how to organize a team and what pitfalls of the development they should be aware of;
- This collaboration type is not the best choice for those who do not want to invest in gradual development but rather want to have a minimum set of tools released to the market within the shortest terms possible without upgrades and continuous improvement;
- Clients that cannot afford active involvement in the process should also consider a different collaboration model.
- Сorporations of all sizes;
- Experienced Managers with solid background in the chosen area
- Ventures with clear vision and future plans for the project
- An opportunity for a client to supervise the development process
- Elimination of the recruitment risks, since it’s a responsibility of the outsourcing company
- Flexibility of the project flow and all the processes within it
- Cutting time and expenses
- Excellent employee management inside the company
- The team gets to focus on one task only
3. Team Extension
Finally, a brilliant solution for companies that have all the specialists on staff but one as well as those ventures that want to hire a particular professional for some limited time.
If that is the case for you, then Team Extension should be your choice. With it, you get the most talent for your project from an outsourcing studio.
However, it is important to bear in mind that such a collaboration will be the most fruitful only if the client already has solid experience in team management.
When hiring specialists this way, the client does not have to worry about searching for the right specialist. Besides, this way the company can hire an expert for some short-term projects only not having to worry about remuneration to the employee that got redundant.
Time and Material meaning that the hours worked by the development team are multiplied by the rate previously agreed on
Defined by the client based on his business needs
- This engagement model is not the best choice for people with a very small in-house team
- Not the best fit for companies that need a large group of professionals for extension
- Not good for long-term collaboration
- Established and fully functioning companies that need a specific expert to work for them within a limited time
- Companies with core development teams working on the project and looking for a new talent to join
- No need to be your company’s HR Manager, but have the professionals pick the best talents for you
- A chance to get qualified help for a limited time
- Cost efficiency
- Great talents within the shortest time and with no recruitment and payroll headache whatsoever
Just to recap, here is an image with all the types of collaboration so you can check them out and compare. Find out which one fits your business needs the most!
If you have not found your company in the description, do not worry: we know that every idea is special, your business might have needs different from the running businesses on the market.
That is why we are ready to offer a compromise: we can create a specific collaboration model that will fit you the most.
Our Business Analysts will look into your business processes to understand which collaboration and payment methods will best meet your needs and expectations and reap the most fruit for both sides. Just drop us a line about your concerns - and we’ll get in touch!