When a company realizes that its operations require short-term (or medium term) computer expertise, it is faced with a choice. Either it must hire freelancers via a resource lending firm, or it must use the services of an external development firm. There are advantages and disadvantages to both approaches.
Resource lending (outsourcing) is focused on providing consulting services with the expertise to meet your specific needs. As a general rule, a company will outsource resources in order to carry out short-term goals. The needs of the company and the deadlines will be defined beforehand and the work plan will also be elaborated beforehand.
Since the work to be done is already defined, you will only pay for the realization of the project. The resource loan also offers the freedom to demand new resources if the relationship becomes difficult. Finally, you will also benefit from a fixed-term project mandate allowing you to optimize the planning following the completion of the mandate.
The main disadvantage of the resource loan is undoubtedly a financial disadvantage. The supplier will take a commission on the hourly rate of outsourced services. In addition, the supplier will be responsible for doing a good job so that subsequent people can easily take over the work in case changes are required. The company itself must develop a transition plan and strategy truly benefit from this approach.
The project development partner company is primarily focused on providing the necessary project services to design a complete project. In general, a company will use project delivery in order to achieve medium or long term goals and projects. Needs and deadlines will not always be defined beforehand and the chosen partner company will accompany you in this process.
Let's imagine this option as a house building project. The construction contractor will support you in your projects, but changes during construction will have a cost. It will also be easier to estimate the total cost of a project if it is properly defined by both parties. The delivery of projects is substantially the same and the contribution of the partner company is definitely beneficial for you. In addition, it is very likely that the hourly rate paid for the project will be lower given the withdrawal of the commission. Finally, this option allows you to outsource the management of resources and tasks. This allows you to concentrate your efforts on your company and its production chain.
It goes without saying that since the project is not always completely defined in advance, there will be a variation of costs. More often than not, a preliminary phase of analysis will be carried out in order to lessen or even avoid this variation. This can sometimes have an impact on the duration of the project. The control of team members is also diminished, if not non-existent, since it will be important for the company to bring the team together.
At Shift, we are a united team that works extremely well together. We do not outsource resources because it hinders team spirit and slows down our effectiveness. We work in project delivery mode with our clients. We want to offer less expensive and more efficient solutions to our customers, with the same quality of expertise while focusing on team spirit! That being said, if you have sporadic and short-term needs requiring one or two services, outsourcing may be a good option. There are many companies that specialize in this area.