The debate over whether companies should keep operations in-house versus relying on outsourced development has been ongoing for a long time. Outsourcing is used across all industries, with obvious benefits, none more so than in an industry like iGaming and online sports betting, where speed to market with new products and launches into newly regulated markets is of utmost importance.
With each new market, such as those that have opened up in the US and Latin America in recent times, comes intense competition. Speed to market is essential, and each operator entering a new market has to meet tight deadlines and simultaneously deliver innovative products to keep existing customers engaged while trying to attract new customers.
While The Unit possesses unrivalled expertise in the iGaming and betting industry, we also deliver outsourcing solutions for multiple other sectors, and the argument for outsourcing can be applied to all of them.
Below, we delve a little deeper into how we can help businesses scale up, increase flexibility, access additional tech talent, and deliver innovative products at value for money, all while maintaining control over the IP.
The Case for Outsourcing in Today’s Market
For companies that are starting out and looking to find their feet with limited resources, or established companies looking to deliver on lengthy product roadmaps, outsourced development services can help with the delivery of projects on a time- and cost-effective basis.
Internal resources may not be sufficient in numbers to be able to deliver on the product roadmap in a given timeframe. This is all the more frustrating for senior management when budgets exist to deliver such projects. In such situations, there needs to be a mechanism in place for budgets to be spent to deliver projects without increasing overall headcount.
With modern technology, it is easier for both internal and external teams to communicate to deliver projects, working seamlessly together on a common goal: the delivery of quality, on-time projects.
An outsourced development company is not typically kept at a distance. It will act as an extension of the core team. When it comes to full-stack development, app development, or custom software development services, leaning on the expertise of a third party is a far more enhanced process due to the better tools and practices that are in place.
When an external partner is on hand to swiftly take calls, communicate with the client, take their needs into account, and work efficiently, they can deliver fast, successful results.
Scaling Teams Quickly With External Development Partners
When it comes to building a team, recruitment processes can often be lengthy, with many applicants to sift through, and a significant amount of time needed to review and schedule interviews with candidates. That is before salary negotiations, notice periods, and all the natural issues that come with a new starter who will need time to get up to speed.
When you can call upon an external partner who can quickly get to work and is so vastly experienced in the industry that they do not need that time to get up to speed, this vastly improves efficiency and allows the business to scale up teams quickly, meeting the demands of a project.
Different specialists can be added at different phases of the project. Whether it is back-end development in the early stages of proceedings, or front-end development coming in towards the latter stages, the external provider can call upon the right people at the right time for optimum use of resources and budget during the project.
Are a team of six developers going to be needed for next week? Will engineers need to be on call the following week? Will the marketing team be required for a month-long stint? These are all questions a third party can answer.
Flexible Resourcing for Changing Project Demands
Requirements often shift and priorities can evolve during the development of products. Different teams can be brought in at different stages of that process, and flexibility will be an important part of the project.
When outsourced development services are on board, they can adapt to levels of workload that could change as a project progresses. The client may require full teams for the first sector of a project, and only a couple of individuals for the later phases.
This is once again a reason to favour outsourcing over hiring internal staff. Once internal staff are hired, the business will constantly have to justify why they are paying them a full-time salary, even when there may be times where a smaller headcount is needed.
It is not just about the number of staff contributing, but it is also about the variety of skill sets they can bring. This is something a third party can provide, as they will have already spent several years building out their own teams, who all bring the relevant required experience. The specialist attributes of the outsourced team will ensure the client always has the right people on the job at the right time.
Accessing Specialised Skills Through Development Outsourcing
Many internal hiring processes can be run more in hope than expectation. Most of the time, companies will advertise for open positions without having any initial contacts that they know are right for the job.
It is all well and good advertising on job board websites and hoping the right talent will come along and apply, but that does not match up to having access to a global pool of talent with years of experience in the relevant industry. The range of professionals the third-party provider has on hand could be scarce or expensive to hire internally.
Aside from the talent being available, the skills the outsourced development company provides could be more niche than anything that will be found via a hiring process. They can perfectly match up with what the client requires due to the experience they have built up in that very industry.
When you have a trusted partner on board, this can ensure quality and accountability. Geographically speaking, the provider may also be able to offer offshore development services from across the world, as opposed to an internal hire who may come from the client’s home market. At no extra cost, the net can be cast far wider.
Reducing Costs Through Strategic Outsourcing
Each internal employee will command a salary that will typically be paid in equal instalments on a monthly basis. This will be paid regardless of the needs of the company at that time, whether it is a busy or a slower month, and will not take into account the budgets required for individual projects. There are also additional costs such as employee benefits, equipment, training, and overheads to consider.
When an external partner is at hand, they can work on a retainer basis, a per-task basis, or a per-project basis, or however the client wishes to set it up. This is a type of flexibility that does not come with hiring staff internally.
There does not have to be a one-size-fits-all approach here either. The third-party partner could cover parts of a project aside from what has been assigned to the in-house team, collaborate with them on a joint basis, or handle the early stages of software development when the internal tech is not up to scratch, before handing it over to the in-house team.
For start-ups in particular, this method can be an effective way to budget for a product launch and can significantly reduce the financial risk.
Speed to Market and Innovation With External Teams
When the time being taken up to train new internal staff is reduced, quicker timelines and faster launches are possible. This is particularly important in competitive markets, where operators do not miss a trick and are constantly in a race to bring new innovations to the table. This is where an outsourced development team can make the difference between taking a leading position in the market from the outset or playing catch-up.
An experienced provider will be able to assess requirements, delegate them to the relevant members of their team, and turn around the work required in a timely manner. Outsourced partners can make timelines shorter when they have the ability to work around the clock and can utilise offshore teams. With work being done at a greater speed, this allows the client to test and improve as they figure out what works and what can be done better.
When work can be completed more quickly, this will give companies the opportunity to innovate within their product offering, and they will be able to offer an improved customer experience as a result. Internal teams can place their focus on the company’s strategy and vision, and the outsourced team can take care of the execution of plans.
Overcoming Challenges in Outsourcing Partnerships
Even when the expertise required to deliver results in a timely manner is in place, a team has to work in tandem to satisfy a client’s needs. The issue of communicating across various time zones can be challenging, but it can be managed effectively with the right approach.
Communication frameworks have to be in place, with work hours for different offshore development services teams overlapping. Collaborative tools, such as planning documents and communication platforms, can ensure everyone within the team is aligned and focused on the task at hand.
It is also extremely important to ensure both sides are fully aware of the terms of the agreement they are going into. Contracts and NDAs may seem like a very basic element of business, but companies cannot afford to forget these details before they go into partnership with one another. This makes sure both sides are legally protected and are clear on what is expected of them.
Conclusion
Outsourcing remains highly relevant and valuable, and can fill in all the gaps to ensure an operator has put itself in the best possible position to succeed. When you want fast and efficient results, the know-how and flexibility provided by an outsourced development partner is the far more convenient option, easing pressures on timelines, budgets, and expectations. Product launches, scaling of tech stacks, access to talent pools, reduced costs, and speed to market are just some of the many advantages a third-party partner will provide.
We would strongly encourage readers to consider outsourcing with The Unit for their company. To find out more about how The Unit can provide you with outsourced development teams, please feel free to get in touch here.
