{"id":3274,"date":"2020-07-30T08:42:33","date_gmt":"2020-07-30T05:42:33","guid":{"rendered":"https:\/\/www.roweb.ro\/blog\/?p=3274"},"modified":"2023-04-11T14:55:36","modified_gmt":"2023-04-11T11:55:36","slug":"comparative-cost-effectiveness-analysis-dedicated-team-software-outsourcing","status":"publish","type":"post","link":"https:\/\/www.roweb.ro\/blog\/comparative-cost-effectiveness-analysis-dedicated-team-software-outsourcing\/","title":{"rendered":"<strong>Comparative Cost-Effectiveness Analysis:<\/strong><br>Dedicated Team (software outsourcing)<br> vs In-house Staff"},"content":{"rendered":"\n<div class=\"suits\">\n    <p>The consumption of every resource begins and ends with spending more money. Based on this obvious reality,\n        evaluating the team\u2019s expansion from a cost perspective is essential mostly because:<\/p>\n    <ul class=\"blue-checkbox\">\n        <li>the <strong>new (social and economic) context<\/strong> generates an unpredictable market dynamic. This\n            dynamic directly influences your business evolution by: <\/li>\n        <ul class=\"red-checkbox\">\n            <li>forcing your company to operate in new ways;<\/li>\n            <li>determining you to re-prioritize your business with a digital focus;<\/li>\n            <li>generating urgency in developing a rapid response to the current disruptions;<\/li>\n            <li>managing the shift to new patterns of work (remote work, hiring external teams, etc.)\n            <\/li>\n        <\/ul>\n        <li>the <strong>competition became tougher<\/strong> &#8211; If you are working for a software development company, you\n            are aware that every project counts. While all your competitors will try to attract new projects through\n            persuasive arguments like costs and extended capabilities, you have to adapt fast to the clients\u2019 specific\n            needs and expectations and be ready to offer them a complete and competitive package of services.\n        <\/li>\n        <li>you <strong>need to rely on long-term profit<\/strong> &#8211; maintaining a good relationship with clients can\n            guarantee you a long-term profit as long as you are able to respond fast to their contextual needs with a\n            smart price-quality ratio.\n        <\/li>\n    <\/ul>\n    <p>&nbsp;<\/p>\n    <h4 class=\"header-with-badget\">What are the costs generated by extending your internal teams (In-house Staff)<\/h4>\n    <p>\n        When it comes to hiring new people for extending your team, there are several costs you must take into account:\n    <\/p>\n    <p><img decoding=\"async\" class=\"costs-icons\"\n            src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/employee.png\"\n            alt=\"employee_icon\"><\/p>\n    <p><strong>Hiring process:<\/strong><\/p>\n    <ul class=\"blue-checkbox costs-icons\">\n        <li>recruiting costs (job ads placement, time spent by your HR specialist for selecting and interviewing\n            candidates, etc.);\n        <\/li>\n        <li>one-time onboarding and employment costs.\n        <\/li>\n    <\/ul>\n    <p><img decoding=\"async\" class=\"costs-icons\"\n            src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/monitor.png\"\n            alt=\"employee_icon\"><\/p>\n    <p><strong>Equipment and training costs:<\/strong><\/p>\n    <ul class=\"blue-checkbox costs-icons\">\n        <li>tech equipment for office or\/and remote work;<\/li>\n        <li>training costs for specific technologies.<\/li>\n    <\/ul>\n    <p><img decoding=\"async\" class=\"costs-icons\"\n            src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/payment.png\"\n            alt=\"employee_icon\"><\/p>\n    <p><strong>Ongoing payments:<\/strong><\/p>\n    <ul class=\"blue-checkbox costs-icons\">\n        <li>monthly salary;<\/li>\n        <li>benefits (bonuses, health insurance, pension, etc.);<\/li>\n        <li>course fees and associated costs.<\/li>\n    <\/ul>\n    <p><img decoding=\"async\" class=\"costs-icons\" src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/money.png\"\n            alt=\"employee_icon\"><\/p>\n    <p><strong>Other costs:<\/strong><\/p>\n    <ul class=\"blue-checkbox costs-icons\">\n        <li>vacation;<\/li>\n        <li>holidays;<\/li>\n        <li>illness.<\/li>\n    <\/ul>\n    <p>&nbsp;<\/p>\n    <p><strong>Hidden costs generated by new hires:<\/strong><\/p>\n    <ul class=\"blue-checkbox\">\n        <li>acclimating period to the work environment (team, methodologies, etc.) &#8211; During the accommodation period,\n            the employees are not productive, initially generating only costs. As research showed (source:\n            sloanreview.mit.edu) it will take <strong>8 to 26 weeks for an employee to achieve full\n                productivity<\/strong>;<\/li>\n        <li>adaptation to projects requirement &#8211; If they don\u2019t have experience in working on similar projects, new hires\n            will generate extra-cost for more training. As research confirmed, due to the learning curve, new hires\n            <strong> end up costing between 1% to 2.5% of total revenues<\/strong>. (source: MIT Sloan Review);<\/li>\n        <li>employees leave the company until generating any profit &#8211; In IT companies the <strong>fluctuation of\n                employees is dynamic<\/strong> as a result of the high demands on the market for specialists;\n        <\/li>\n        <li>retaining key-employees &#8211; Every project development relies on some key-employees. Keeping them satisfied\n            takes energy, time and&#8230;money. Bonuses and salary increases are the most commonly used methods to\n            <strong>retain performant employees in the company<\/strong>;<\/li>\n        <li>employees become unavailable &#8211; Personal events like pregnancy, accidents or long term illness may keep them\n            on pause for a significant period of time, blocking a position in your team and forcing you to\n            <strong>restart the recruitment process<\/strong>;<\/li>\n        <li>once the project is over, they become unproductive &#8211; Hiring people for a specific project comes together\n            with the risk of taking on <strong>expenses for a period when they might not producing anything.<\/strong>\n        <\/li>\n    <\/ul>\n    <p>&nbsp;<\/p>\n    <h2 class=\"mobile-main-header\"> EXAMPLE (East Europe):<\/h2>\n    <p><strong>Basic team structure:<\/strong><\/p>\n    <div class=\"team-structure flex-container\">\n        <div class=\"team-structure-item\">\n            <p><img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/manage.png\"\n                    alt=\"employee_icon\"><\/p>\n            <p>1 X Project manager<\/p>\n        <\/div>\n        <div class=\"team-structure-item\">\n            <p><img decoding=\"async\" src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/woman.png\"\n                    alt=\"developer_icon\"><\/p>\n            <p>1 X Developers <\/p>\n        <\/div>\n        <div class=\"team-structure-item\">\n            <p><img decoding=\"async\" src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/ux.png\" alt=\"ux_icon\">\n            <\/p>\n            <p>1 X UX Designer<\/p>\n        <\/div>\n    <\/div>\n    <div class=\"team-cost-card\">\n        <ul class=\"icon-list\">\n            <li>Annual salary + benefits + taxes\/1 employee: <strong>$60-$70K<\/strong><\/li>\n            <li>Annual training costs\/1 employee: <strong>$1200 &#8211; $1500<\/strong><\/li>\n            <li>Recruiting and initial hiring costs\/team: <strong>$3000 &#8211; $5000<\/strong>\n            <\/li>\n        <\/ul>\n        <hr>\n        <ul class=\"icon-list\">\n            <li>Average costs for a BASIC In-house team: <strong>($65000 x 3) + ($1300 x 3) + $4000 = $202900<\/strong>\n            <\/li>\n            <li>*without including other inevitable costs mentioned above<\/li>\n        <\/ul>\n    <\/div>\n    <p>&nbsp;<\/p>\n    <h4 class=\"header-with-badget\">What are the costs generated by working with a dedicated team? (Software outsourcing)\n    <\/h4>\n    <p><strong>Dedicated Team Model<\/strong> is the approach based on bringing together business analysis, project\n        management, and skilled external employees&#8217; absorption. By taking over an entire project,<a href=\"https:\/\/www.roweb.ro\/dedicated-development-team.html\" target=\"_blank\" rel=\"noopener noreferrer\"> a dedicated team will cover all the needs and risks that can\n            occur on a project<\/a>: from setups operations to project management and team\u2019s architecture and\n        functionality.<\/p>\n    <p><strong>How it works<\/strong><\/p>\n    <div class=\"red-icon-cards\">\n        <div class=\"card\">\n            <span class=\"heading\">Debriefing<\/span>\n            <p>client&#8217;s specific needs on the project<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/conference.png\" alt=\"\">\n            <\/div>\n        <\/div>\n        <div class=\"card\">\n            <span class=\"heading\">Defining<\/span>\n            <p>the team architecture and the project\u2019s estimations (time, budget, etc.)<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/notes.png\" alt=\"\">\n            <\/div>\n        <\/div>\n        <div class=\"card\">\n            <span class=\"heading\">Staging<\/span>\n            <p>project\u2019s evolution<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/evolution.png\" alt=\"\">\n            <\/div>\n        <\/div>\n        <div class=\"card\">\n            <span class=\"heading\">Developing<\/span>\n            <p>project stage by stage<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/development.png\" alt=\"\">\n            <\/div>\n        <\/div>\n        <div class=\"card\">\n            <span class=\"heading\">Managing<\/span>\n            <p>the project<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/manage.png\" alt=\"\">\n            <\/div>\n        <\/div>\n        <div class=\"card\">\n            <span class=\"heading\">Reporting<\/span>\n            <p>and communicating results to the client<\/p>\n            <div class=\"icon\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/blog\/newsjacking\/digital-marketing.png\" alt=\"\">\n            <\/div>\n        <\/div>\n    <\/div>\n    <p><strong>Services covered by a Dedicated Team (for software outsourcing):<\/strong><\/p>\n    <ul class=\"blue-checkbox\">\n        <li>high-level management<\/li>\n        <li>project management<\/li>\n        <li>task management<\/li>\n        <li>activities and processes supervision<\/li>\n        <li>project stages and workflow development<\/li>\n        <li>team architecture<\/li>\n        <li>logistic management<\/li>\n        <li>recruiting\/selecting\/integrating professionals in the project team<\/li>\n    <\/ul>\n    <p>The dedicated team pricing system is simple and allows easy estimation. Based on an hourly rate, the client pays\n        monthly bills according to the team size and structure.<\/p>\n    <p>Main costs a client has to take into account for working with dedicated team are: <\/p>\n    <ul class=\"icon-list\">\n        <li class=\"icon-clock\">Hourly rate according to the team structure<\/li>\n        <li class=\"icon-plane\">Travel expenses (if applicable)<\/li>\n        <li class=\"icon-innovation\">Management &amp; communication for the project<\/li>\n    <\/ul>\n    <p>Costs like&#8230;<\/p>\n    <ul class=\"blue-checkbox\">\n        <li>professionals\u2019 salaries<\/li>\n        <li>associated hiring taxes<\/li>\n        <li>logistic investments<\/li>\n        <li>benefits, taxes<\/li>\n        <li>recruiting investments<\/li>\n    <\/ul>\n    <p>&#8230;are <strong>supported by<\/strong> the company that provides the <strong>dedicated team.<\/strong><\/p>\n    <p>&nbsp;<\/p>\n    <div class=\"blue-info image\">\n        <p class=\"white-block\"><strong>Looking for a professional team for your next software development project?\n            <\/strong>\n        <\/p>\n        <p class=\"white-block\">Count on our 130 skilled developers to turn your ideas into functional solutions.<\/p>\n        <p>\n            <a class=\"contact-us\" href=\"https:\/\/www.roweb.ro\/estimation\" target=\"_blank\" rel=\"noopener noreferrer\">Request a project quote<\/a>\n        <\/p>\n    <\/div>\n    <p>&nbsp;<\/p>\n    <h4 class=\"header-with-badget\">Comparative Cost-Effectiveness Analysis:<br>Dedicated team (software outsourcing) vs\n        In-house Staff<\/h4>\n    <p>\n        <a class=\"contact-us\" href=\"https:\/\/www.roweb.ro\/dedicated-development-team.html\" target=\"_blank\" rel=\"noopener noreferrer\">Dedicated Team Model<\/a> is usually used for:\n    <\/p>\n    <ul class=\"blue-checkbox\">\n        <li>long term projects;<\/li>\n        <li>projects with dynamic requirements and objectives;<\/li>\n        <li>projects that require extended skills;<\/li>\n        <li>developing a project (e.g., an app) with fixed deadlines;<\/li>\n        <li>completing an existing project.<\/li>\n    <\/ul>\n    <p>\n        For projects like these (and not only), the profitability is significantly higher when the company hires a\n        dedicated software development team.\n    <\/p>\n    <p>&nbsp;<\/p>\n    <img decoding=\"async\" class=\"simple-no-border\"\n        src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/Group5.png\"\n        alt=\"comparative_image\">\n    <p>&nbsp;<\/p>\n    <p>Cost simulation: Dedicated team vs In-house Staff<\/p>\n    <img decoding=\"async\" class=\"simple-no-border\"\n        src=\"\/images\/new_design\/blog\/articles\/Comparative-Cost-Effectiveness-Analysis\/Group.png\"\n        alt=\"cost_simulation_image\">\n    <p class=\"simple-gray-box\">(source: Existek Global Software Report 2020)<\/p>\n    <p>&nbsp;<\/p>\n    <div class=\"red-info image\">\n        <p class=\"white-block\"><strong>Get in touch with one of our software consultants to get a free quote for your\n                next project.\n            <\/strong>\n        <\/p>\n        <a class=\"contact-us\" href=\"https:\/\/www.roweb.ro\/estimation\" target=\"_blank\" rel=\"noopener noreferrer\">SEND US A REQUEST<\/a>\n        <\/p>\n    <\/div>\n    <p>&nbsp;<\/p>\n    <h4 class=\"header-with-badget\">How to start working with Roweb\u2019s dedicated dev teams on your next project?<\/h4>\n    <p>Starting a new project with us it\u2019s easy. <a class=\"contact-us\" href=\"https:\/\/www.roweb.ro\/estimation\" target=\"_blank\" rel=\"noopener noreferrer\">Fill the form<\/a> and send us relevant details about your software\n        development needs, and we\u2019ll get back to you as soon as possible with a project brief or even with a project\n        proposal (if the project requirements sent by you are complete).\n    <\/p>\n    <p>Until sending your project requests, there are some things you may want to know about us: <\/p>\n    <p>&nbsp;<\/p>\n    \n    <\/div>\n\n\n\n<pre class=\"wp-block-code\"><code><\/code><\/pre>\n\n\n\n<p><strong>TECHNOLOGIES THAT WE USE:<\/strong><\/p>\n<div>\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/dotnet.png\" alt=\".net icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/php.png\" alt=\".php icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/apple.png\" alt=\"apple icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/android.png\" alt=\"android icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/react.png\" alt=\"react icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/java.png\" alt=\"java icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/angular.png\" alt=\"angular icon\">\n    <img decoding=\"async\" class=\"logo\" src=\"\/images\/new_design\/blog\/articles\/logo\/node.png\" alt=\"node icon\">\n<\/div>\n<div class=\"row\">\n    <div class=\"col-sm-6 col-12\">\n        <p><strong>METHODOLOGIES<\/strong><\/p>\n        <ul class=\"blue-checkbox\">\n            <li>Agile<\/li>\n            <li>Scrum<\/li>\n            <li>Kanban<\/li>\n            <li>Waterfall<\/li>\n        <\/ul>\n    <\/div>\n    <div class=\"col-sm-6 col-12\">\n        <p><strong>ROLES WE PROVIDE<\/strong>\n        <\/p>\n        <ul class=\"blue-checkbox\">\n            <li>Project managers<\/li>\n            <li>Business analysts<\/li>\n            <li>Developers<\/li>\n            <li>Q&amp;A specialists<\/li>\n            <li>Scrum masters<\/li>\n            <li>UX Designers<\/li>\n        <\/ul>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"suits\">\n<p>&nbsp;<\/p>\n    <p><strong>Check out some projects developed with our dedicated teams<\/strong><\/p>\n    <p>&nbsp;<\/p>\n    <div class=\"app-example-carousel blue-carousel\">\n        <div>\n            <div class=\"row\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/dedicatedTeams\/whise.jpg\" alt=\"whise\" class=\"app-example-image shadow col-xs-4\">\n                <div class=\"app-example col-xs-8\">\n                    <div class=\"app-example-title\">Project: Whise<\/div>\n                    <div class=\"app-example-description\">Our client is a leading real estate software company from\n                        Belgium. The company&#8217;s main product is an integrated cloud-based Customer Relationship\n                        Management software, designed for the real estate sector.<\/div>\n                    <div class=\"app-example-info\">\n                        <span>TECHNOLOGY<\/span>\n                        <div>C#, WPF, WCF, LINQ, MS-SQL, SQLite, ASP .NET, MVC, SOA<\/div>\n                    <\/div>\n                    <a href=\"\/whise-real-estate-crm.html\" class=\"app-example-link\" target=\"_blank\" rel=\"noopener noreferrer\">Tell me more<\/a>\n                <\/div>\n            <\/div>\n        <\/div>\n        <div>\n            <div class=\"row\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/dedicatedTeams\/Ezbee.jpg\" alt=\"whise\" class=\"app-example-image shadow col-xs-4\">\n                <div class=\"app-example col-xs-8\">\n                    <div class=\"app-example-title\">Project: Ezebee<\/div>\n                    <div class=\"app-example-description\">We had been working with the client since 2012 on the first\n                        version of a social commerce application. Our client approached us with a business idea that\n                        relied on social networking to create an open, free marketplace for micro-businesses all over\n                        the world.<\/div>\n                    <div class=\"app-example-info\">\n                        <span>TECHNOLOGY<\/span>\n                        <div>Node.js, Web API Arhitecture, OrienteDB, Web Sockets, Braintree API, PayPal API, Amazon Web\n                            Services, MySQL, jQuery, CSS3, HTML5<\/div>\n                    <\/div>\n                    <a href=\"\/ezebee-v2.html\" class=\"app-example-link\" target=\"_blank\" rel=\"noopener noreferrer\">Tell me more<\/a>\n                <\/div>\n            <\/div>\n        <\/div>\n        <div>\n            <div class=\"row\">\n                <img decoding=\"async\" src=\"\/images\/new_design\/dedicatedTeams\/Tourpaq_QA_case_study1.png\" alt=\"whise\" class=\"app-example-image shadow col-xs-4\">\n                <div class=\"app-example col-xs-8\">\n                    <div class=\"app-example-title\">Project: Tourpaq<\/div>\n                    <div class=\"app-example-description\">Tourpaq provides software solutions for tour operators,\n                        including data structure and SEO tools finance management and payment monitoring tools,\n                        ticketing and credit management, automatic price optimization tools and CRM and marketing\n                        solutions.<\/div>\n                    <div class=\"app-example-info\">\n                        <span>TECHNOLOGY<\/span>\n                        <div>ASP.NET, MS SQL Server, ASP.NET AJAX, WCF<\/div>\n                    <\/div>\n                    <a href=\"\/portfolio\/tour-operator-management-system.html\" class=\"app-example-link\" target=\"_blank\" rel=\"noopener noreferrer\">Tell me more<\/a>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The consumption of every resource begins and ends with spending more money. Based on this obvious reality, evaluating the team\u2019s expansion from a cost perspective is essential mostly because: the new (social and economic) context generates an unpredictable market dynamic. This dynamic directly influences your business evolution by: forcing your company to operate in new [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[171,174],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/posts\/3274"}],"collection":[{"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/comments?post=3274"}],"version-history":[{"count":14,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/posts\/3274\/revisions"}],"predecessor-version":[{"id":7891,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/posts\/3274\/revisions\/7891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/media\/3276"}],"wp:attachment":[{"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/media?parent=3274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/categories?post=3274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roweb.ro\/blog\/wp-json\/wp\/v2\/tags?post=3274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}