What is the Best Way to Outsource Software Development?

When a client has a software development project, it is vital to analyze aspects such as the requirements, project duration, and whether it is an upgrade to an existing application or the development of a brand-new one. Collecting all of this information allows us to determine the best way to staff the digital solution. In companies like Adage, there are two ways of contracting: agile teams and software factories.  

Let’s get a better understanding of what these two forms of contracting are all about: 

  • Agile teams: Scrum teams or agile teams, are a set of cross-functional software development professionals with all the necessary skills to develop a digital product within a given time frame continuously. In this form of contracting, the client pays monthly for the services of said team. 

  • Software Factory: In software development companies, software factory contracting, also known as time and material, is mainly based on contracting a specific number of hours of one or more software development professionals to implement a digital solution. As it is an hourly modality, the requirements must be clear and specific in order to fulfill the objective within the agreed hours. 

It is very important to keep in mind that in software development, the overall timeline is unpredictable. 

At first glance, the cost of development with an agile team may be higher than that of a factory one. A cross-functional agile team may comprise a scrum master, various developers, a technical leader, QA, and other professionals that may be required. In contrast, a factory can have one or multiple experts hired on a part-time or full-time basis. 

Therefore, if it’s a large company that requires robust, high-impact, and easily scalable projects, it's recommended to hire an agile team. If you’re looking to complete a small project with very specific definitions and few variables, hiring a factory may be the most cost-effective alternative. 

Contact the Adage team to find out whether your next software development project is best served by an agile team or factory.

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