The same evolution goes for service delivery as well. Multinational organizations, enterprises, and medium to small companies all want to gain a competitive advantage in the market and turn to software development outsourcing to adopt innovative software and improve efficiency as well as boost revenue.

With the growing demand for services, more diverse and innovative service delivery models appear as well to leverage external expertise effectively. And one of those innovative models with its growing popularity is called build-operate-transfer model in IT.

Check out this extensive engagement models ebook that will help you understand the basics of collaborating with an outsourcing vendor.

In this article, you are going to find out the essentials of BOT in IT outsourcing industry. First of all, we will give the definition of this approach, describe how it works, what are the benefits of BOT, as well as possible challenges you might encounter. Let’s get started so you know more about the build-operate-transfer in IToutsourcing and can make better and well-informed business decisions!

What is a Build-Operate-Transfer (BOT) Model?

Before we dig into all the details, let’s get started with the basic definition so you know clearly what is BOT.

Build-operate-transfer model is one of the business engagement models that imply building R&D centers in an overseas location. Usually, a trusted IT outsourcing provider takes over this process and will create a center that will function in their location.

To be more specific, an IT outsourcing provider who offers a BOT model will be fully responsible for developer recruitment, legal aspects, payroll and accounting, and other operational procedures. It’s also worth noting that the R&D office might eventually transition into the client’s premises.

Outsourcing is one of the best and most well-recognized solutions that can help businesses reduce costs and improve their efficiency. Vendors offer quality services through the BOT as well as other engagement models to achieve all this.

In addition, by leveraging the build operate and transfer model in IT, companies can gain a competitive advantage as they can benefit from the market-leading expertise while delivering complex software solutions as well as acquiring exceptional service delivery capabilities.

How Does Build-Operate-Transfer Model in IT Outsourcing Work

Build-operate-transfer in IT industry is a very straightforward model. It consists of three main stages.

1. Build stage

The first phase involves a deep analysis of the client’s tech requirements and business needs. It’s crucial to understand their main vision, the end goal, as well as their company culture. Based on that, the service provider will take care of choosing the location, employing competent specialists, and providing the team with all the necessary hardware and software.

2. Operate stage

This phase is aimed at attaining safe and consistent operations while standardizing all the internal procedures and improving the processes to meet the objectives. The professionalism of a vendor will enable the client company to become more flexible, scalable, and easily adaptable to market changes.

3. Transfer stage

The last phase of engagement implies that the mature and stable operational center will be legally transferred to the client. It can be fully or partially transferred to a client including all the IP, knowledge base, team members, and assets. One of two options will be discussed and agreed upon beforehand. The success of the BOT depends on the success of the overall transition which depends on the proven track record of the service provider.

Key Benefits of Build-Operate-Transfer Model in IT Industry

Let’s take a closer look at the real advantages that BOT in IT industry can bring to businesses all over the world.

1. Reduced costs

First and most significant benefit of the BOT model is its reasonable pricing. The option of creating an R&D office with this model will be suitable for small companies that only want to grow as well as for big enterprises that want to cut down their expenses without losing the service quality. It can help you save up to 60% of expenses as salaries in overseas locations are significantly lower than in the North American market. We recommend you take a look at Eastern European service providers.

2. Minimized risks

Along with significantly reduced costs, the BOT can also minimize the potential project risks related to the services offered. The outsourcing company will take care of all the details as they are aware of the industry and they know all the local conditions of collaboration including the legal side of the process. The vendor will be already prepared to face all the challenges and overcome them without your involvement.

3. Flexibility

The build-operate-transfer model is considered a very flexible one. If a company needs that, the BOT will satisfy this need. Employees hired within the BOT model will be able to work on different tasks and switch between projects. Moreover, the collaboration between your in-house team and BOT team will be more productive and effective as outsourcing professionals are fully integrated into the project and will share the overall company culture.

4. Access to a wide talent pool

Due to a talent shortage of qualified professionals, businesses located in North America or Western Europe have faced a problem of having difficulties hiring in-house employees. The high demand for talent creates a lot of competition between employers of different sizes.

The BOT model will give you unique access to a wide talent pool so you can hire specialists with the required expertise without geographical limits. No matter what you choose — a nearshore or offshore outsourcing partner, you will have higher chances of successful recruitment of experts.

5. Facilitated scaling

The build-operate-transfer model gives an opportunity for a client to start a productive collaboration with team members right away. As the company infrastructure is completed and all team members are put to effective work, the client can focus more on scaling up their businesses while the outsourcing partner will take care of and eliminate all the possible bottlenecks. It gives more freedom to a company for business growth and development as well as plenty of room for rapid operational expansion.

6. Fast product release

Team members hired within a BOT model work on a project continuously. They are fully dedicated to the process meaning you can achieve the desired results and release your product on the market faster and more easily. Both parties are interested in a successful collaboration that’s why both of them are putting maximum effort into the quick and quality end result.

Challenges & Solutions When Using Build-Operate-Transfer Model in IT Market

As you can see, the BOT model in IT industry has plenty of advantages. However, there are some potential risks that you might face as well. Let’s take a look and the possible drawbacks:

• Offers might be rejected by candidates. If you haven’t played the offshore outsourcing game before, you have to be ready that candidates might potentially reject your job offer. Not all outsourcing providers will promote your company to be more appealing to candidates. In order to avoid that, you have to take care of employer branding as part of your collaboration strategy with offshore specialists.
• Challenges with dedication. The BOT team will belong to the offshore outsourcing provider. Therefore, chances are you will face potential challenges with employee dedication. Developers who will work for you can be confused and not fully understand who manages them and to whom to report all their progress. To make everything easy and smooth for you, make sure you take over the management process and your vendor that assists you in setting up the R&D team won’t have access to the development itself.
• Lack of operational management expertise. Choose an experienced provider who is knowledgeable in setting up an R&D office. Many IT service providers don’t know all the administrative operations details it implies. Choose a vendor with practical skills that will help you effectively.

Summing Up BOT Model for IT Outsourcing

To sum up everything that we said above, the BOT model IT outsourcing is the outstanding solution for companies who look for affordable ways to expand their teams, improve operational efficiency, and take their businesses to a whole new level.

More and more companies of different sizes opt for this specific model over other engagement models due to the big number of benefits the BOT offers. Despite some minor challenges it’s possible to face during the collaboration, this model is definitely worth considering for your upcoming projects.

Consider Intellectsoft Your Trusted Software Development Partner

If you are looking for a reliable software development partner that can help you in your digitalization journey, consider collaboration with Intellectsoft. It is a trusted offshore IT outsourcing strategies company with more than 14 years of professional experience on the market.

Our team offers a wide range of expert services, starting from software development consulting, to building a custom end product while using the latest technological knowledge and advancements.

Take a closer look at our top client cases to see how effectively we cope with business challenges and what scalable and innovative solutions we offer.

We have extensive expertise to outsource software development services across various industries including construction, healthcare, fintech, hospitality, logistics, and more. Intellectsoft has gathered the most qualified software engineers and other IT professionals to deliver top-notch results and meet all your business needs and requirements.

Feel free to contact our representatives today to get all the information regarding the terms of collaboration, to describe your project, and see the NDA agreement as well as contract samples. We are ready to skyrocket your business and implement our best knowledge and practices to build software that will transform your company.

FAQ 

How does the BOT model benefit IT Outsourcing?

In outsourcing, the build-operate-transfer model has a very special place. This particular model has many advantages and that’s why it’s chosen by various companies across industries. The main benefit of this specific model is cost reduction. You will be able to expand your team and receive quality services while paying less. Another pretty important advantage is that this model minimizes all the risks related to the process of building an R&D office so you will always stay on the safe side. In addition, this approach is very flexible and scalable, and you will get access to a wide talent pool to choose from.

Is the Build Operate Transfer model in IT popular?

Yes, BOT is getting more and more popular every day due to the wide range of benefits it might offer to businesses. If you want to know more about this model in Intellectsoft then feel free to get in touch with our team and we will be happy to tell you more about the build-operate-transfer model as well as about other engagement models we use while collaborating with our international clients.

How to know if a BOT is suitable for me?

First of all, in order to evaluate this specific model and understand if it’s suitable for you, you have to clearly define your business needs and goals. It will help you see what purpose you have in the future and after that, you can think of ways that will help you achieve your plan. BOT is not the only existing model so if you are hesitating, contact us and we will give you some basic consulting to enable you to make a well-informed decision that will match your ultimate business development goals.

The post How Build-Operate-Transfer Model is Shifting IT Outsourcing appeared first on Intellectsoft Blog.

To make it all happen you need an experienced workforce with relevant tech skills to do so. .NET development is a big challenge for businesses that can be overcome through outsourcing. Intellectsoft .NET outsourcing services will enable you to build your dream project and meet all your requirements.

We have in-house developers as well as enough resources to hire them from a large talent pool from any location in the world you want. The speed of the search process varies on the requirements regarding the specialist and their expertise, their seniority level, location, future responsibilities, etc. At Intellectsoft, it usually takes from 10 days up to 1 month. The hunting process is not a problem as the rising demand for accomplished professionals across the globe makes it so much easier.

Intellectsoft’s rigorous selection process makes it possible to hire only the most qualified and experienced .NET software developers for your needs and integrate them with your team. Our software architects and team leads take part in the recruitment process and conduct technical interviews to evaluate the technical skills of candidates.

If you are interested in hiring .NET developers and don’t know where to start, keep reading the article. Here, we are going to talk about how to hire dedicated .NET developers for your project, what are the core skills of a qualified professional, and what challenges you might face during the recruitment process. Let’s get started!

.NET Developer Global Market Overview

Currently, .NET is the most widely used platform on the market. It was released in 2002 by Microsoft. Why is it the main choice nowadays? Because it contains plenty of features and tools that enable companies to develop reliable applications and software using different programming languages.

That’s why more and more aspiring developers gain .NET experience and skills and more businesses search .NET developers for hire. There is a large number of professionals with relevant expertise all over the world. And rising demand for .NET developers generates an even more increasing number of specialists. Take a look at the following statistics to see the trend of the current .NET market.

Necessary Skills of .NET Programmer

1. ASP.NET MVC

ASP.NET MVC is the biggest industry trend that can be a developer’s competitive advantage. Knowing how it operates enables programmers to fully manage all application functions. ASP.NET MVC replaces other frameworks that help build any software in the most efficient and timely manner.

2. Exceptional coding skills

It goes without saying that a .NET developer must write quality code so the final product performs well. Specialists should easily determine how they can input the existing code to save time and what code to write from scratch. After the code is written, they have to be able to evaluate the code’s performance and improve it if needed.

3. Client-side technology knowledge 

As the primary task of a .NET developer is to develop innovative, user-friendly, scalable, and highly-functional web applications, they should understand well the essential client-side technologies such as HTML, CSS, JavaScript, and Bootstrap. Similar knowledge will help any professional to boost their employability as well as to deliver top-notch results at work.

4. Programming languages

In order to perform well on a project, a developer must have exceptional knowledge of programming languages. The most important languages are C#, F#, and VB.NET. In addition, it’s also beneficial to be familiar with SQL Server, NoSQL, Oracle.

5. Soft skills

Highly professional full stack .NET developer is not only a person with exceptional technical expertise. The specialist should also possess some soft skills that are integral while collaborating with a client and being a part of a team. Among the most important soft skills, it’s possible to name time-management, problem-solving, and customer service skills.

In-House vs. Outsourced .NET Developers

If you are wondering whether you should outsource .NET developers or hire an in-house team then we will try to help you decide what option is better for your case. An in-house team is an excellent option because you will get developers who are highly involved in a project and share your company culture, and it’s easy to manage them as they are working on your premises.

The main drawback of hiring an in-house team is that it requires some serious financial investments. First of all, in-house developers have significantly higher salaries. In addition, the recruitment process of local specialists involves additional expenses for training, healthcare insurance, office space, vacations, etc. This option will be suitable for large companies and enterprises with enough budget and stable workload and plenty of software development plans for the future.

Outsourced developers offer the same level of performance for a reduced price. As software engineers are located overseas, you don’t have to worry about paying extra and it can be very beneficial for small companies or startups that want to save their budget without losing the quality.

Moreover, outsourcing is the better option in case you are looking for a temporary collaboration with developers. However, be ready to face some challenges while outsourcing. The main bottlenecks are different time zones, some cultural differences, and potential language barriers.

Key Steps to Hire .NET Developer

Here are some easy yet effective steps that will help you find .NET developers and build a loyal and trustful relationship with them.

1. Write an informative job opening

The first and most important thing is to write an informative and detailed job opening. Define who is your perfect team member and what responsibilities they will take on. Structurize all the information and based on it come up with a brief yet extensive advertisement that potential candidates will see.

2. Know where to find them

There is no shortage of .NET developers, however, it’s not so easy to hire a good specialist really easily. Therefore, you need to know where to look for them and be really fast. You should turn to recruitment agencies or look for developers on job boards.

3. Prioritize the selection process

Once you start receiving candidates’ profiles, you have to review each of them thoroughly so as not to miss the real gem. Take your time, read CVs carefully, compare with other candidates and choose your top picks to invite them for an interview.

4. Prepare the right interview questions

Many managers make a big mistake by not preparing the list of interview questions beforehand. It’s paramount to be well-prepared before the interview if your main goal is to hire the best specialist. Create not just a list of questions about the previous experience, but also develop the tech task to evaluate their professional competencies.

5. Soft and hard skills matter

The importance of soft skills is gravely underestimated right now. However, it’s crucial to evaluate the soft skills of a candidate the same way you evaluate their technical knowledge. Define what soft skills would matter for your business and for your company culture and rely on them while looking for a best-matching candidate.

6. Consider hiring remote developers

As we have already mentioned above, outsourcing software development services can be a very convenient and budget-friendly option for companies across industries. Therefore, you should seriously consider hiring remote .NET developers.

Challenges to Avoid While Hiring .NET Developers

• Not paying attention to cultural fit. Cultural fit really matters. You should hire not just an amazing professional who can perform well but also a team player who shares your company’s vision and can be a great match.
• Choosing the lowest salary rates. It’s very tempting to choose the developer with the lowest salary requirements. However, it’s important to understand that salary is the reflection of professionalism and experience. Make wise investments.
• Limited your access to talents. Even though you would prefer to hire local developers, don’t limit your search. Be open to opportunities and don’t underestimate the potential of global search and outsourcing.
• Failing to conduct a proper tech interview. This mistake is very straightforward. Take your time to prepare the relevant technical interview and review it carefully while evaluating it without any bias.
• Hiring from freelancing platforms. This is not the best space to look for qualified professionals. Most likely you will encounter a person with mediocre skills and a lack of experience. Better delegate this task to a professional agency.

Where to Hire .NET Developers? 

As you can see from the .NET global overview and statistics, there is no lack of specialists. There are approximately 6 million on the roles of .NET developer all over the world and basically, you can hire them in any country you want. If your team has enough budget and resources to hire in-house developers, you can search your local market. However, if you want to minimize expenses while maintaining the service quality, you should consider outsourcing .NET services or hiring a dedicated development team who will relocate to your premises but you will pay according to the prices offered by an outsourcing vendor.

Let’s take a glimpse at the average salaries of ASP NET developers in different countries. For example, in the United States, specialists get up to $105,000 per year depending on their seniority, skills, and years of experience. This is the highest salary in the world. In Canada and Australia, the salary goes up to $88,000, and in Western Europe — $80,000. In the UK, the level of salaries is the lowest, up to $72,000.  

Take into account that offshore .NET developers cost less than developers from North America. The price range varies between $50K to $30K per year depending on their seniority level and your specific requirements for a candidate you want to hire. If you want to hire matching specialists, you can look for Easter European destinations. Countries like Ukraine, Poland, the Czech Republic, etc. are trusted by many international companies for .NET developers outsourcing.

If you want to know more about hiring offshore software developers in Eastern Europe — read our guide with valuable tips and a list of companies to consider.

Intellectsoft is a Trusted .NET Software Development Partner

Intellectsoft is a trusted outsourcing company with a market presence of more than 14 years. We are recognized by many review platforms like Clutch, TheManifest, Inc. 5000, and so many more for the level of professional enterprise software development services we offer and for the feedback our multiple clients gave us after collaborating with Intellectsoft.

Our core expertise includes experience working across industries such as fintech, healthcare, construction, hospitality, logistics, and more. We have gathered a team of qualified outsourced developers with outstanding programming skills who share our corporate culture and bring their own contribution while helping businesses digitize and grow exponentially through technology implementation.

Speaking of .NET specialists, we offer our clients access to our employees with the relevant experience or an opportunity to find the best-matching candidate among the large talent pool with the assistance of our skilled recruitment department. We are here to help you in your digitalization journey and are ready to offer all of our skills.

Feel free to contact us and get all the information regarding hiring .NET programmers or discussing your software idea with our representatives. Our team will gladly assist you with defining your project scope, and length, counting expenses for our services and so much more.

Don’t hesitate to take a look at our top client cases to see our capabilities and exceptional results that enabled our partners to grow their businesses and benefit from collaboration with Intellectsoft.

The post Hiring Dedicated .NET Developers in 2023: Steps, Advantages and Pitfalls appeared first on Intellectsoft Blog.

The web application market is an environment that is continuously evolving, incorporating new technologies and increasing safety standards.

In this regard, the proper attention to the foundational design of a web app contributes to maintaining the required robustness, responsiveness, and security of this software. In a web app, this is what solid web app architecture is responsible for.

The definition of web app architecture is broad and depends on the focus of building web applications.

A web application architecture is a model of interaction between web application components. The kind of architecture for web application strictly depends on the way application logic will be allocated among client and server sides.

Technically, it’s the skeleton of a web app, including its elements, databases, systems, servers, interfaces, and all the communication happening between them. In more abstract terms, it indicates the logic behind responses to client and server requests.

When it comes to business benefits, web application architecture is related to the process of creating web applications and planning for their needs in terms of speed, scalability, and security.

This article will provide an overview of modern web application architecture, including its key components, types, and models so that you can invest in this type of architecture with confidence. Let’s get started!

Importance of the Web App Architecture

Improved customer satisfaction: Investing in web application software architecture, or a solid blueprint of its functioning, is needed from the standpoint of user experience.

Being an important part of developing any web app, it makes sure your design is efficient and scalable, which means it will work well under a variety of conditions and avoid downtime. Otherwise, a business app will irritate users with numerous bugs and turn them away from cooperating with it.

Greater business results: The right web application architecture can save your company time and money over the long term, making sure that your website operates at its optimal capacity and runs smoothly without any problems.

In particular, web application system architecture allows web developers to create websites that scale well as traffic increases; it also provides features such as offline access (e.g., Google Docs) that are increasingly expected by today’s consumers.

Better app performance: A solid web app architecture introduces a great degree of flexibility, meaning its adaptiveness to dynamic market fluctuations and customer demands.

The vision on the overall structure makes it easier for developers to work on an app in several modules and introduce new features without interrupting the web app’s work.

Enhanced app security: By envisioning a web app as a system of several blocks, modern web application architecture protects each of its structural elements separately.

This way, overall security increases, making the software stand all the common safety threats like malicious attacks. Thanks to the solid structure, adding new elements won’t ruin the achieved security level.

How Does It Work?

The exact way how web application architecture operates differs between projects, as many of its aspects aren’t dictated by technology but by your project’s needs and business objectives. In other words, web app elements can be adjusted or changed entirely without affecting the overall success of your web app.

At the same time, the typical process of communicating with web app architecture is the following:

1. You as a client type an URL in the relevant browser field.
2. The browser sends the request to the Domain Name Server to recognize the IP address.
3. If successful, the browser sends a request to the server to respond.
4. The server directs the request to the data storage to locate the page, request data display.
5. If successful, the initially requested data appears in your browser.

In this web application architecture diagram, you can see 3 main sides of the process:

• Client-side, or the frontend for user interaction
• Database server, or an extra component for sending client’s data to the server
• Server-side, or the backend storing business logic, processing requests, and sending responses

Web Application Architecture Diagram

What is a web application architecture diagram? Simply put, it’s a framework that is aimed at simplifying the interaction between components. It’s a client-server application that contains various user interfaces, insights, databases, and so on. Now, let’s take a closer look at the basics of this diagram.

1. DNS

The abbreviation DNS stands for the domain name system. It’s a key element that searches IP addresses and domain names. In this way, a certain server receives a request sent by an end user.

2. Load balancer

It directs incoming requests to one of the multiple servers, which means it sends an answer to an end user. Generally, web app services exist as various copies mirroring one another to enable all servers to process requests in the same manner. Also, the load balancer is an element that distributes tasks in order to prevent them from overcharging.

3. Web app servers

This component is basically an app deployment descriptor. What does it mean? It means that it processes the user’s requests and sends JSON//XML docs back to an initial browser. To make it happen, it refers to the backend infrastructure including the database, job queue, cache server, etc.

4. Database

The meaning of this component is pretty much straightforward. It offers a big variety of instruments to perform, delete, organize, and update computations. Mainly, web app servers interact with job servers without any intermediary.

5. Caching service

The component grants easy and quick data storage and search. When the user receives the info from the server, search results will be cached. As a result, future requests will be returned much faster.

These are the scenarios when caching is efficient:

•  Slow or repeated computation
• When a user receives similar results for a specific request

6. Job queue (optional)

This one has two components in it which are a job queue and servers that process those jobs. Many web servers operate a big number of jobs of minor importance. A job that has to be fulfilled goes in the queue and will be operated according to the schedule.

7. Full-text search service (optional)

There are plenty of web apps that support search by text feature. After this, an application sends the relevant results to an end user. The whole process is called a full-text search and it can find the requested data by a keyword among all the documents available in a system.

8. Services

Services will be built in a form of a separate application once the web app attains a specific level. Those won’t be super visible among the rest of the web app components, however, web apps and services will interact with them as well.

9. Data warehouse

It’s a way of storing and exchanging data online through the Internet. This element is usually used for storing different types of files like images, videos, etc. The data is sent to a firehouse for its processing, after that the additional data will be sent to cloud storage, and finally, it all goes to a data warehouse.

10. CDN

The abbreviation CDN stands for the content delivery system. This system sends HTML/CSS/JavaScript files and images. Basically, it delivers content taken from the end server around the globe so users can load sources.

Web Application Architecture Components

The applications differ in complexity and functionality, and the number of layers and components changes accordingly. It may happen that an app is so simple that it works as a monolith storing all the web application design architecture in one place.

Nevertheless, a typical web app will consist of multiple components (or tiers) that interact with each other. Usually, the two major groups for web application architecture are user interface and structural web components.

User Interface Components

This group of components composes a visual interface and has no ties to the architecture itself. Being a part of the interface layout design, the set of UI components includes activity logs, dashboards with analytics, and notifications.

Structural Web Components

Client components: The frontend part that appears in the browser and serves as the field to interact with a web application. The client components are developed with HTML, CSS, and Javascript and don’t need an operating system or device connectivity to operate. Simply put, these components are the web app representation.

Server components: The backend part of the web application architecture that is built using Java, Python, .Net, NodeJS, PHP, and Ruby on Rails to create app logic. Also, server components compose the database, meaning a control center for data storage.

A 3-Tier Architecture Overview

The majority of web apps are created through the separation of their principal function into layers/tiers. Respectively, this enables you to quickly and effortlessly replace or upgrade those layers independently. It is called a multi- or a 3-tier architecture.

In a 3-tier architecture there are three layers/tiers:

• Presentation (client) layer
• Application (business) layer
• Data access layer

It’s possible to say that this architecture is the safest and most secure one. It can be explained by the fact that the client doesn’t access the data directly. Application servers can be deployed on multiple machine providers which enable higher scalability, increased performance, and better efficiency.

Each tier can be scaled independently, therefore, this architecture can be scaled horizontally. In addition, it also significantly improves the overall data integrity as data will go through the app server which is the one that decides exactly how and by whom data will be accessed. This amazing perk is an easy and cost-effective solution in case of new company management.

Layers of Modern Web Application Architecture

Now, let’s take a closer look at each of the three web application architecture layers.

When we are talking about the presentation layer we imply the front end of an app. This layer includes such elements as static content and dynamic interface that are visible to end users.  The environment of this layer is any browser. Among the technologies that are used in this case, we can name HTML, CSS, or JavaScript. The potential frameworks to choose from include Angular, React, and Vue.

Speaking of the business layer which is also referred to as the application layer, is a part of the app backend. The web app’s backend determines business logic and responses to browser requests that are sent to the presentation layer. It consists of the core application logic and outlines all internal flow for data and requests. The most convenient environment in this case is servers, serverless cloud platforms, or PaaS. Among the programming languages that are used in this case, we can name PHP, Java, Python, Ruby, or JavaScript. The potential backend frameworks to choose from include Django, Express, Spring, and Laravel.

And the last but not least layer is the data access layer. The data access layer is closely linked with the business layer as it gets needed information from the servers. In its turn, the data service layer separates business logic from the client side while processing requests.

It is an app backend part that contains databases and  DBM ( database management systems) that collect, manage and store data. The environment can be the same as the application layer. Among the Database management systems, we can name MySQL, PostgreSQL, MongoDB, and so on.

All the layers work independently and communicate with each other through the relevant components.

Models of Web Applications

Enterprise web application architecture models differ based on two criteria: the number of servers and the number of databases. To pick the best one, you should carefully revise your aims and constraints and find the most appropriate one for the current stage of business development.

One Web Server, One Database Model

• The simplest: You have only one server and one database for all the requests and responses.
• Relatively unreliable: If the single server goes down, your app will shut down immediately.
• Relevant for testing: These days, one web server, one database model is too old for real apps. However, it’s a great way to test your web app idea and overview the fundamental design of your web app as an MVP.

Multiple Web Servers, One Database Model

• Stateless architecture: There is no single web server for data storage. When a client inputs information, the relevant server writes it to the sole database managed outside.
• Relatively reliable: As there are more than two servers in the model, a backup server is always available.
• One database availability: Dangerous in terms of possible website crash.

Multiple Web Servers, Multiple Databases Model

• The most efficient: No single point of failure, as there are several web servers and databases.
• Flexibility: You have at least two options for database storage, so you can choose to keep identical data in all of them or distribute information.
• Some information can be lost: In the case of a crash, you won’t lose your entire web app. Nevertheless, some data will be lost. To prevent this scenario from happening, it’s better to install load balancers.

Types of Web Application Architecture

A web application architecture type is a particular pattern under which the components interact with each other. In other words, it shows the way app logic lets the client side and server side communicate.

To make the right choice here, it’s also relevant to check your business requirements, along with technical information about features, functionalities, and the desired app logic.

Single Page Application Architecture

This web application architecture is designed to show relevant content only. To make this happen, it first loads the relevant web page and then dynamically updates the representation of its content with the requested information only.

In other words, it doesn’t refer to the server for loading new pages but sends requests for the needed parts of the webpage only.

Single Page Applications contribute to smoother performance and a more intuitive user experience.

Pros of single-page app architecture:

• Faster performance
• Improved flexibility of UX

Cons of single-page app architecture:

• Increased testing time
• Possible loss of unsaved progress
• Slower first-load speed

Microservice Architecture

Being the frequent alternative to an unreliable monolithic web application architecture, microservices disperse the functionality to deliver small and lightweight services separately.

In particular, they are loosely coupled and use APIs for communication if a sophisticated business problem arises. This peculiarity eases the developer’s life since it’s possible for individual service components to be built in different programming languages.

Thanks to its flexibility and stability, microservice architecture has gained popularity these days, with businesses like Amazon, eBay, and Netflix adopting it for their complex needs.

Pros of microservice architecture:

• Easier scaling up
• Better fault tolerance
• Simple-to-understand code base
• Independent module deployment

Cons of microservice architecture:

• Difficulties with testing and debugging
• Complex deployment

Serverless Architecture

In web application development, this architecture type, you outsource both server and infrastructure management to a third-party cloud service provider. This way, a web app logic execution won’t intervene in the infrastructure running.

Choosing a serverless architecture is good for companies that want to delegate server and hardware management to a reliable tech partner and concentrate on front-end development tasks instead.

Also, this web application architecture type allows working on small functions in apps. The service providers that assist in server management are Amazon and Microsoft, among others.

Pros of serverless architecture:

• Absence of server management
• Highly scalable
• Minimized latency
• Speed and flexibility

Cons of serverless architecture:

• Security concerns
• High complexity

Progressive Web Apps

Being among the most promising web app trends since 2019, progressive web apps offer a convenient and effective user experience available from any browser and device through a shared URL.

The application of progressive web apps is wide, including industries like entertainment, finance, and eCommerce. Their key benefits include lightweight, cost-effectiveness, cross-device nature, ability to attract web traffic, and a fully functioning app experience.

Pros of progressive web app architecture:

• Browser availability
• Mobile-first approach
• Increased traffic
• Effective offline performance

Cons of progressive web app architecture:

• Restricted browser support
• Narrow utilization of native APIs

Web Application Architecture: Best Practices and Tips

Here, we’ve gathered the top 5 recommendations for business owners to consider while working on web app architecture for their projects and building cooperation with tech partners.

1. Think of a proper web application architecture at the earliest stages

Without a comprehensive structure, your application will turn into a labyrinth of messy elements and components that are too hard to handle.

2. Don’t copy somebody’s success

The top mistake is to pick a web application architecture of a successful company and simply replicate it. In reality, a successful architecture is one that corresponds with your business goals and ideas, not theirs.

3. Pay attention to your technical limitations

It’s not always possible to get the best and most successful elements in your web application architecture. However, with the proper attention to quality attributes and realistic business expectations, you will get the maximum from all the components you have.

4. Eliminate the problems right away

Don’t wait for the web app release to fix the problems in its architecture. The earlier you address the issues, the more reliable core features it will have.

5. Create a checklist of successful web app features

To make sure your web app has achieved its goal, it’s good practice to note your expectations from it at the very beginning and discuss their possibility and measurable KPIs with your tech partner.

The possible checklist may include these features:

• Overall system flexibility
• Components can be reused
• Well-written code
• Ability to scale
• System stability
• Easy bug detection
• Sticking to security standards
• Fields to work with user feedback
• No crashes
• Easy-to-use
• Responds fast
• Can be deployed automatically

Consider Intellectsoft Your Trusted Web App Development Partner

So, the success of web development services is always closely connected to its architecture. In this regard, we recommend each business owner and their software development team dedicate attention to picking the best architecture design for the project.

In the future, the time spent on this stage will lead to thousands of dollars and lots of time and nerves saved on fixing errors in the core app functionality.

If you need high-level assistance in building a secure and modern web application architecture, we’re here to help! Contact the Intellectsoft team, and we’ll build together the software solution that perfectly fits your exact business needs.

The post Web Application Architecture: The Ultimate Guide appeared first on Intellectsoft Blog.

Optimized and automated operations are the essences of successful business practice. This rule is easily applied to the healthcare industry as well. Implementing the latest software solutions is crucial for any medical institution or business as it boosts efficiency and solves a wide range of challenges this industry faces daily.

Among the most common challenges healthcare providers face are the difficulty in finding patient and doctor management tools that will enable them to reduce paperwork, improve efficacy, and enhance patient care while reducing the overall budget expenses.

More and more organizations have started adopting medical ERP software with exceptional functionality that fits perfectly in every hospital.

It is one way to enhance any healthcare organization’s efficiency. For hospitals of different sizes, the enterprise resource planning system helps to overcome operational challenges, provide better efficiency of the services, and correspond to the needs of the modern market.

In this post, we’ll provide a detailed overview of healthcare ERP solutions, including their types, benefits, and implementation peculiarities.

What Is ERP and What Is It Used For?

Enterprise resource planning (ERP) is a modular software solution that centralizes the organization’s information, optimizes connections, and facilitates data sharing between enterprise departments. With its help, a company can establish end-to-end connectivity of all the running business operations, including the relations with vendors and customers.

The ERP system brings together multiple modules and facilitates cooperation between various departments of the company. This way, distinct business units can constantly communicate, interact, and share data while dealing with daily operations.

Even more, the ERP system stores all the relevant information and enables automation of collecting and using corporate data for the business’s benefit. In this regard, ERP systems harmonize the decentralized workflow which usually adds some hurdles to process management.

6 Ways ERP Software Benefits Healthcare Business

ERP system for healthcare is a multifunctional software tool that adds value to hospitals in a number of ways, including cost savings, improved efficiency, enhanced collaboration, and optimized patient management.

The exact list of advantages of medical ERP includes:

1. Improved patient care

The first core benefit of ERP systems in hospitals is enhanced patient care. As the system minimizes paperwork for doctors, and reduces their time spent on finding the patient data, they significantly improve the patient service quality as doctors can focus on patients more than on redundant administrative tasks.

2. Better finance management

ERP systems are perfect for managing hospital finances as well. It will make it so much easier to process and control all patients’ payments as well as hospital operating expenses. It also minimizes administrative errors to avoid any unnecessary costs.

3. Virtual data storage

Enterprise healthcare systems allow organizations to store effectively all their strategic data related to their patients and business operations. The system can enable full privacy and confidentiality so you can be certain no data leakage is possible. In addition, it’s very convenient for employees as it allows easy data access for anyone as all data will be stored in one system.

4. Enabled strategic planning

Enterprise healthcare software will be very useful for owners and hospital managers to make well-informed strategic decisions. It’s easy to analyze all core success indicators of the hospital to improve the overall results in the future.

5. Simple integration

It’s worth noting that some hospitals still use very outdated systems that are super challenging to maintain. A medical ERP solution is a nice way to streamline all the operations. This software enables the integration of all the departments including HR, finances, and inventory to improve the efficiency of work in the hospital.

6. Business intelligence

Medical ERP system is an important tool for those who run hospital operations. It’s an integrated solution that provides better business intelligence and enables generating more financial value for an organization by assessing the hospital’s performance and detecting areas for potential improvements.

All in all, ERP increases productivity and efficiency; introduces interconnection between various departments, suppliers, vendors, and provides storage for data-driven insights.

As for the possible limitations of healthcare ERP software, companies should be ready to address these three factors:

• Prices: You’ll need to cover the expenses of ERP consultants, server providers, in-house IT specialists, and software implementation.
• Maintenance: As technologies develop, the system should be constantly updated and enhanced in order to maintain the level of compatibility of the company.
• Training and Education: You should show your employees how to use the system and notify departments about new tools and functions added.

Types of ERP Systems in the Healthcare Industry

Over the years of deployment, ERP systems have developed and grown in their number. Nowadays, they can be classified according to the implementation process and a number of functions.

Nowadays, there are three types of ERP classified by implementation:

• On-premise (for large healthcare institutions)
• Cloud ERP (for small healthcare institutions)
• Hybrid (for developing healthcare institutions)

1. On-Premise ERP System

On-premise software requires in-house installation and maintenance, meaning its availability on the organization’s computers and the presence of an internal IT team.

There is no need for an Internet connection to get access to the information stored on-premises. Servers are owned by the organization, and an IT team takes care of the software and constantly updates it. Large businesses can consider this type of ERP software implementation, as having a license for the program means having control over every module and aspect.

2. Cloud-Based ERP System

Companies can purchase cloud ERP from third-party vendors on a monthly or annual basis. It grants access to the data anytime and anywhere via an Internet connection. 

There is no need to employ IT specialists, as cloud ERP will be maintained by the vendor. That’s why it’s important to find a reliable tech partner. Generally, this software type is cheaper than the on-premise one and suits the needs of small businesses more.

3. Hybrid ERP Systems

Hybrid ERP is a combination of on-premise ERP and cloud-based ERP. It perfectly suits the needs of companies that occupy a specialized niche.

The cost of hybrid enterprise resource planning maintenance depends on its sophistication. Usually, businesses turn to a hybrid ERP system when they need to integrate cloud-based modules into existing on-premise software as they grow. So, data is split into two parts — on-premises and on-cloud.

If you don’t know what type of healthcare ERP system would suit you most, you have to define your needs first. If you are a small developing organization in the field of healthcare that strives to optimize the internal processes, then a cloud-based option will be a more reasonable choice for you.

Speaking of healthcare giants that want to digitize their businesses and innovate — on-premise ERP software will be more suitable. It will be more costly and time-consuming but at the same time, it will enable exceptional personalization and system customization based on their specific business goals.

The hybrid option can be a good match for many organizations as it’s a combination of both and incorporates all the best practices of both on-premise and cloud-based systems.

Healthcare ERP Solution Components

ERP systems combine a number of modules and sub-modules that are interconnected and distinguished by serving a particular hospital area. Each module contains several sub-modules or tools that manage different tasks and projects. Combined together, modules cover all organizational operations, both internal and external.

Usually, each ERP task is collaborative, meaning that employees from different departments can be added to manage and complete the request on time.

Usually, ERP systems consist of Human Resources, Sales, Finance, Logistics, and Inventory modules. Other modules can be added to the system if your organization has specific needs and wants to automate certain operations.

• Electronic health record: An ERP system can be easily integrated with an EHR that can significantly boost your operational efficiency. It will allow you to control the supply chain of your hospital as well as analyze and predict the needs of patients and suppliers.
• Human Resources: This module handles employee management tasks such as enrollment, offboarding, timesheets, and benefits administration. HR components can automate payments calculation, thus reducing human error and time spent on monotonous tasks.
• Patient Relationships Management: CRM module stores and stacks generated patient data. It will help you easily store, access, and manage all relevant patient information including health records and payments.
• Business Intelligence: This module helps to solve issues related to hospital data collection, analysis, and report delivery.
• Inventory Management System: This ERP element keeps track of all the inventory of the hospital and automatically updates your system for the employees to know whether some medicines or other materials are out of stock.
• Financial Management: This component analyzes and keeps track of the financial data of the company. It helps to control the enterprise’s budget, spent costs and received payments

Any other components can be added to the system per your requirements. The main issue here is to have a team of employees who are capable of creating and integrating new functions.

Core Features of an ERP System

• Centralized database: This feature is needed to comprise the data flow from all the hospital departments and store it in one place.
• Modular: The system consists of a number of interconnected modules.
• Flexible: The system can be upgraded according to the healthcare organization’s needs by replacing functions or tools or adding new modules.
• Automated: The main ERP purpose is to automate manual processes and omit duplication of the information for healthcare administrative employees.
• Time and cost-effective: As the system automates operations, it saves time spent on a product or facility delivery as well as reduces costs.
• Real-time analytics: An ERP system will help you easily analyze your organization’s performance and financial condition so that your team can make all possible business amendments. ERP reports usually include visual representations of your performance to identify bottlenecks and solve issues.

ERP Implementation Process

An ERP implementation process is a complex and all-inclusive process of planning, system deployment, data migration, and user training. These are the main stages needed for your healthcare institution to successfully transfer to a new ERP system while maintaining your best practices.

There are two possible methods of implementing ERP software for your healthcare organization. The first one consists of transitioning to a new system at once meaning all the data will be switched to ERP software and all employees will start using it simultaneously. The process will take less time but you have to be ready for the potential technical issues depending on the amount of data stored.

The second method means that you will transfer data in clusters by function or priority, and your team will be switched to a new system gradually step by step. It goes without saying that the second option takes more time but it will potentially cause fewer technical problems while transitioning.

Probably you are also wondering how long the implementation process of an ERP system takes on average. The answer is the overall ERP implementation should never be rushed. This is a very serious step for your business and many internal processes will depend on the success of the implementation so you have to stay patient.

Generally, it will take from 3-9 months but it varies from one case to another and you should take into account all your business peculiarities that will shape the final date. The factors that define the length of the process include the healthcare business size, complexity, locations, languages, and currencies involved, etc. So now, let’s take a closer look at the main implementation algorithm.

Algorithm

We recommend following this process to get the most from an enterprise resource planning implementation:

1. Define your desired results by understanding your business aims and current processes.
2. Do not automatically reuse old workflows to make sure you’re bringing in the changes needed.
3. Map all your business processes to create a clear business case.
4. Select the right solution and partner who is capable of running the implementation process to the end.
5. Create a long-term ERP plan that drives your business forward.
6. Ensure executive-level support so that every department is involved in the process and creates a perfect architecture for your business.
7. Assemble the right project team with key players assigned during every implementation stage.
8. Focus on getting the right data for a smooth and accurate migration process.
9. Standardize the process and minimize development to the basic functional suit to which you can add further enhancements in the future.
10. Plan training to educate the employees and teach them how to use ERP.

Mistakes & Best Practices

Now, let’s take a look at the best practices for Implementing the healthcare ERP system as well as the mistakes you should avoid to make this process as smooth as possible.

1. Plan thoroughly

Some healthcare companies underestimate the importance of planning before even considering developing an ERP system. It’s very important not to rush with any decisions and actions, and to plan all the processes from the very beginning to the system launch. You need to create the foundation for all future processes. Yes, it will take time, but once you start the development process, everything will happen faster and more smoothly with the minimum risks of failure.

2. Invest in support and training

After your collaboration with external vendors, don’t forget to invest your resources in training. After the system deployment, you still have to ensure its technical support, fix potential issues, and be able to provide system updates. It’s going to be the biggest mistake not to allocate a budget for tech support and proper employee training as well. All staff including doctors and representatives of other administrative departments have to be confident and comfortable using a newly adopted software for their better efficiency.

3. Arrange data migration

Some organizations don’t plan data migration accordingly or simply migrate all old data to a new ERP system and it might create some bottlenecks in the future. Pay attention that some information can be outdated and unnecessary and there is no point in transferring it to a new system. It’s your unique chance to clean up your system a bit and leave only relevant data that will come in handy.

4. Communicate effectively

The last but not least mistake that healthcare business owners make is they don’t communicate enough through all the stages of the ERP solution implementation. It’s paramount for the whole team to communicate with the software company to make sure that everything is done according to your initial business requirements and needs. The development process of this software is very costly and time-consuming, therefore, it’s your main priority to make sure that everyone is aligned and nothing goes off track.

Consider Intellectsoft Your Healthcare ERP Software Development Partner

ERP solutions facilitate operational processes for healthcare businesses of any size. Being highly flexible, the ERP software is tailored to your needs and expanded as required.

We recommend companies use enterprise resource planning technology as a tool to reduce the time spent on daily operations, increase revenue, and enhance relationships with customers and vendors.

We, at Intellectsoft, empower companies and their workforce with cutting-edge transformative solutions and data-driven insights. Among our enterprise software development services, you can pick the set of modules and technologies needed for your business needs.

Are you and your organization ready to shift mindsets and get the most out of innovations? Talk to our experts to request an ERP software solution from us!

The post ERP System in Healthcare: Benefits, Components & Implementation Process appeared first on Intellectsoft Blog.

As outsourcing services are getting more and more sought-for, you have probably stumbled on the words “team extension model” online while looking for software engineers to help you with a project.

The team extension is an outsourcing model that involves expanding your in-house development team with advanced technical skills for the short- or long-term based on your business needs.

This model enables companies to minimize costs related to recruitment and project management of specialists while receiving the best results possible.

Instead of choosing from a limited number of specialists in your region, you can collaborate with an outsourcing partner from Europe, for example, and get access to a vast talent pool and hire the best experts for reinforcing your team.

Therefore, it’s possible to say that team extension is a more efficient model to hire the right software team extension with niche skills quickly — and there is more to it.

This post will guide you through all the essentials, helping you get a clear understanding of the service, including:

• How team extension works
• How it differs from the classic dedicated team service
• Advantages and pitfalls of the team extension services
• How to choose a trusted partner
• And so much more

Now, let’s discern this new way to hire the right IT team extension specialists.

How Does Team Extension Work

Generally speaking, the process of outsourcing IT team extension is pretty simple and straightforward. This type of service is offered by established outsourcing companies all over the world. As you probably know, the top destination for outsourcing software development are several countries in Eastern Europe such as Ukraine, Poland, the Czech Republic, and so on.

As a rule, those companies operate in the IT market for many years or even decades, therefore, they have unique access to a wide talent pool of software engineers with a diverse range of skills, knowledge of programming languages, and other competencies. It gives them a competitive advantage over other agencies and they can search for and compose a team according to your requirements pretty quickly.

Offshore team extension is not only about offering quality services but building long-lasting and trustful relationships with a client and becoming a part of their team to assist them in solving their business problems.

Team Extension vs. Dedicated Development Team

Team extension and dedicated development team are two pretty similar models that exist in outsourcing. However, not all business owners understand what the main difference between them is and how to make the right choice that will be suitable for the company.

Whereas an extended team is a part of your in-house team, a dedicated development team functions as an individual entity and is located on the premises of your outsourcing partner.

The goal of the team extension model is to fill in the skills gaps in the existing team or complement it with some unique technical qualifications missing. At the same time, a dedicated team is built from scratch and consists of all the specialists needed to work on your project from the first steps to product launch.

To sum it all up, the team extension model will be suitable for those businesses that are ready to invest in a long-term partnership with an outsourcing vendor and will be ready to expand the in-house team with external professionals. This collaboration will allow them to achieve exceptional results and will be suitable for big long-term development projects.

Speaking of dedicated teams, this model can be a good choice in case you are not ready to host a new team on your premises and want to get the job done from a distance. In addition, it will be suitable for projects of shorter duration and of less complexity.

Team Extension Benefits

Team extension has four important advantages that we will dive into below.

Flexibility in Proximity

Team extension aims to provide a client with the right developers regardless of wherever the developers and the client are, and negotiate a mode of cooperation: nearshore (in close proximity to the client), onshore (on the client’s premises), or offshore (remotely).

Here, team extension should aim to negotiate the most flexible conditions, with a developer (or developers) flying to work as an onshore dedicated team whenever needed — or work onshore or nearshore while keeping the possibility to work remotely.

Niche Skills

When it comes to software solutions and digital products, many companies want to have an edge over the competition and cater to the demands of modern customers. In most cases, this is achieved through the implementation of the latest technologies.

Whether it is a project with augmented reality, blockchain, or the Internet of Things, team extension helps to find a loyal software developers team that consists of qualified engineers who have the combination of hard and soft skills required for complex projects.

High Scaling Velocity

As companies that offer team extension have at least five years of expertise in software development team extension management, they employ a great number of software developers on a full-time basis. They also have access to a pool of developers — a region in the world that has a very high number of software engineers with a wide range of skills.

Eastern Europe is a good example, balancing cost-effectiveness and code quality. The scale of this talent market and its regulatory framework allows the companies operating in the region to provide highly flexible team extension.

Team extension’s high flexibility also extends to the hiring process, which can be tailored to the client’s requirements, allowing them to tackle the challenges of the ever-changing business environment.

High Loyalty

Fostering a company culture that both makes existing developers stay and always attracts new talents is paramount to team extension. Equally important are career planning and professional management.

As a result, team extension offers an incomparably low attrition level in a team of software developers, allowing them to tackle long-term projects that go on for over a year.

Pitfalls Of Team Extension & Possible Solutions

Despite the valuable benefits that extensive IT services offer, this approach is not perfect. There are a few challenges that business owners have to be aware of in order to know how to effectively overcome them. Down below you will find the most common pitfalls to be prepared for and know what to expect in case of potential collaboration with a vendor.

Searching for a short-term solution

The biggest mistake that companies make while choosing team extension services is to perceive it as a short-term solution to temporarily close the gap in the team. This approach won’t make this partnership successful.

The main way to avoid disappointments and poor results are to build long-lasting relationships and integrate an extended team into your in-house team on a long-term basis. Only this will help you to achieve their peak performance, complete alignment with business objectives, and top-notch results.

Prioritizing costs over value

Despite the fact that outsourcing is a perfect way to reduce software development costs, each engagement model is based on its own pricing. Usually, companies might put the cost over the value that would be potentially offered by a team.

Instead of focusing on expenses, try to shift your attention to the value that an extended team will bring to the table along with their tech skills and competencies.

Setting unclear expectations

Extending a software development team means you will have to put some extra effort into making your partnership. No matter how professional your extended team will be, they need you to set clear goals, expectations, and deliverables and explain your core business objectives so they can deliver the best possible results.

Take your time and define what exactly you expect from each of your new team members, and develop detailed documentation that will serve them as support while working on your project.

Treating your extended team differently

Extended team members are a valuable part of your company. However, not all business owners remember the fact that they are part of a team and they have to be treated the same.

In order to ensure their peak performance, it’s important to make sure they have the same working conditions as other team members, they are involved in some extra office activities like corporate parties. Your attitude will define the level of their engagement and by motivating them you will ensure quality results for your business in the future.

Not embracing cultural differences

If you decide to extend a software development team it’s paramount to remember that your new software developers have a different cultural background which you should also take into account.

However, rather than paying the low cost for and inviting specialists from Asia who have a different mentality and language barrier, you can pay a bit higher price but invite professionals from Eastern Europe who have a more similar mindset and with no exceptions speak English fluently. It will enable you to minimize a cultural gap and find understanding with your team more easily.

Team Extension Structure

Team structure depends on your business needs and objectives, although you should determine the exact reasons why you hire each specialist in your team. In most cases, the effective inclusion of an extended team works when you have urgent, complex tasks and limited resources for hiring new in-house professionals to complete them. In this wide definition, hundreds of smaller reasons and nuances can be your case, such as:

• You need to develop MVP really quickly,
• Your in-house team doesn’t have free resources to manage critical project tasks,
• There’s a need to address the growing scope of the project ASAP,
• You have ambiguous goals you cannot achieve with your current team.

The key principle for hiring an extended team is to turn it into an integral part of your current project team. In practical terms, that means smart empowerment and supplementation.

If you can identify all the problems and gaps, try finding each specialist on a freelance platform. However, it’s always easier to hire an online vendor who will do all the necessary audit, hiring, and management work over your dedicated team.

If you need the checklist to start, here’s the typical structure of a dedicated team that we advise our clients:

• Front-end engineer,
• Back-end engineer,
• QA,
• UX/UI designer,
• DevOps engineer,
• BA,
• PM.

Is This Dedicated Team Model More Cost-Effective?

As team extension offers immense flexibility, the client has a lot of space to be efficient with their budget. Opportunities include hiring an engineer with niche skills to work as part of an existing developers team solely for a short-term task (or solving a particular problem).

Ultimately, there might not be a great difference in budget costs between the usual dedicated team approach and team extension for most projects. Still, that is not what the service aims to achieve in the first place.

The key difference between team extension and the classic team extension services lies in higher efficiency at key stages, and the focus on loyalty.

Who Would Hire a Dedicated Team with Team Extension?

The key industries that look for this new dedicated team approach are healthcare (among them a lot of pharmaceutical companies) and hospitality and tourism. The first needs reliable partners to deliver near-faultless software for patients and internal usage, as well as implement new technologies.

Meanwhile, hospitality and tourism companies need to continuously deliver highly streamlined software solutions. For example, today’s guests expect mobile to be part of the hotel experience and expect a hotel’s level of comfort extends to its mobile app.

At the other side of the reception desk are the employees, who need effective digital tools to deliver the services efficiently. Interestingly, a lot of startups also seek team extension services, to succeed with large-scale projects.

How to Choose a Trusted Team Extension Partner

Since the task of hiring a dedicated team becomes harder with the extra requirements for a team extension, switching to higher speed and effectiveness requires proper knowledge. We recommend referring to an expert who has access to all the valuable resources on the market and can assist you in finding true specialists for your task.

There are 4 basic principles for hiring a dedicated team with team extension. In short, you should check that the new team members are an ideal project fit and possess deep expertise in their field. For you, there are requirements for total control over the situation and a clear definition of the project goals.

Ensure that the people hired fit your project perfectly

Since team extension works on a project with the maximum speed and effectiveness, careful preparation for its inclusion is critical. Before hiring, ensure the chosen specialists can dedicate their full attention to your tasks, without switching between several projects.

Moreover, we recommend meeting each new team member in person. Since you’ll be working side by side for several hot months, mutually pleasant integration is a must.

Check the professionalism of a dedicated team

During the project implementation, you’ll face many times how things go wrong. But you can reduce the level of uncertainty and pressure by finding the right people who possess deep expertise. They can address all these challenges and bring your overall project’s effectiveness to a new level.

Establish direct control over a dedicated team under team extension

Never transfer the reins of power to your team situated in another office! The team extension model presupposes that you are a full owner of the project still. Thus, be ready to manage the constant flow of technical improvements, edits needing your attention, and various types of strategic and tactical decision-making.

Moreover, your responsibilities will include possessing control over the development process, effective team communication, and performance evaluation. In short, the team’s increased effectiveness doesn’t mean you’ll have less work — and you should embrace that responsibility.

Clearly define project goals and criteria

To measure the speed and effectiveness of a dedicated team under team expansion, you need a clear vision of your project and where it leads. Moreover, determine the roles of each team member to avoid ambiguity and their low effectiveness. In practical terms, that means setting milestones for the project and creating the assessment plan for each new project member. Don’t hesitate to use the SMART approach to goal-setting and direct discussion with your extended team members.

For the best result, look for software development companies that have been working in IT for well over five years. Many of them offer the team extension model. The service offering might slightly differ from company to company, but the main promise should be the same.

In general, team extension has the perfect structure to fit a startup with several ambitious projects, an established business that manages long-term projects with complex tasks, and a digital agency that aims at expanding. And it doesn’t work that well when you have limited funds, small project scope, or high quality is not your priority. In these cases, you won’t be able to maintain the extended team management and enjoy the advantages of its speed and effectiveness.

If you are looking for some extra workforce for your business to implement your ideas and develop innovative software to boost your growth, find out more on our Team Extension page to get familiar with the full list of services and benefits you might get while collaborating with Intellectsoft.

If you are ready to hire and lead a team of developers, do not hesitate to get in touch with us. Our software engineers have been helping startups, SMBs, and Fortune 500 companies for over 10 years.

The post Software Team Extension Outsourcing appeared first on Intellectsoft Blog.

Therefore, technology-driven innovation in healthcare has the enormous potential to improve patient service, enable the delivery of more convenient and personalized care, and create an annual value of $350 billion–$410 billion by 2025. In addition, the telemedicine market size is expected to exceed $130.5 billion by 2025 and even more in the future.

As you can notice, the implementation rate of software solutions for healthcare industry as well as for pharmaceuticals is growing exponentially and the process of digitization will only pick up the pace.

However, it’s worth noting that the majority of medical organizations lack experience in working with healthcare software solutions. For this reason, we’ve collected everything you need to know about healthcare software development and provided recommendations to help your company or organization benefit from evolving technologies.

Healthcare Software Development Definition

In essence, healthcare software development covers the huge amount of activities directed at solving the problems within organizations in the healthcare sector and the relations between caregivers and patients. The industry involves clinical services, hospitals, medical equipment providers, financing for medicine, and research centers.

Software development for healthcare systems establishes an entire ecosystem where healthcare services gain higher quality and accuracy.

This technological innovation comes in the form of machine learning in healthcare, Big Data, and e-health and creates an opportunity to enhance the patient experience and equipment involved.

Main Types of Healthcare Software Development

Medical Practice Management Software

This technology is requested for maintaining clinical workflow and optimizing everyday operations. It assists in keeping medical records, setting appointments, managing finances, and accounting activities.

Electronic Health Record Software

The design allows the maintenance and management of patient data in electronic records. The reports stored include information about allergies, laboratory conclusions, medical history of a patient, and demographic statistics. It’s worth noting that EHR can be integrated into an ERP system for healthcare that will grant even wider functionality for any healthcare institution. 

E-Prescribing Software

It’s the technology that allows sending medical prescriptions directly to drug stores and pharmacies. It strengthens the connections within the healthcare industry and serves the patient’s comfort.

Urgent Care

This healthcare software category unites numerous apps that help patients get emergency aid without attending the doctor’s office.

Hospital Management Software

This set of technologies optimizes hospital management. These solutions assist in billing, assigning insurance, managing patient information, and administrative work.

Healthcare CRM

This software type works with customer management. The main task is to maintain better relations with clients — meaning better care quality, contact management, and accurate performance reports.

Cost of Software Development in Medical Field

Before you even begin the process of clinical software development for your organization, it’s paramount to estimate the cost of the project so you can define and plan your budget properly. The price for software development in the medical field can start from $50 000 to $500 000 and more, and the cost depends on multiple factors such as complexity, project specifications, length of collaboration with the vendor, etc. Down below we will dwell on these factors so you can get a better understanding of what affects the final price.

1. Type of Collaboration

First of all, it’s important to decide what type of team you want to work with. If you have enough resources, it’s possible to hire an in-house team that will work by your side. However, the most convenient solution is to pick an outsourcing team of software engineers who will deliver the software of the same quality but for significantly less price.

2. Team Composition

Another factor that shapes the development cost is team size and expertise. Take into consideration that all the details such as the number of employees, their experience and skills, and a technological stack of software developers involved in the project might also affect the final price.

3. Project Complexity

First of all, the cost will be defined by the type of software or medical website you want to develop. Second of all, such details as design complexity as well as the number of features that you want to include will play a crucial role in the final budget.

4. Development Timeline

This one is directly connected to the software development complexity. The more complex your software is, the more time-consuming and, respectively, costly your healthcare development project will turn out to be.

5. Team Location

If you opt for an outsourcing team of software engineers, the price will also vary depending on the region. If you want to get the best quality-price balance, it’s recommended to consider Eastern European outsourcing destinations.

What Do Healthcare Software Development Companies Do

The greater demand for technological solutions in the medical sphere caused the appearance of narrow-specialized healthcare software development companies.

They offer assistance to non-governmental organizations, hospitals, and medical schools through a wide set of optimization services. At the same time, the requested enhancement range calls for finding a truly reliable software development partner.

From the standpoint of medical institutions, the reason to introduce IT solutions is mostly cost-oriented. Among all, a hired software development company should solve the task of greater financial efficiency through cost optimization.

And here, the technologies can provide data to control financial KPIs, emergency analytics, and client behavior. With these parameters, the spending on a healthcare software development company becomes justified.

3 types of services that healthcare software development companies offer:

1. Healthcare software — all the technologies to assist data management and improve care quality,
2. Healthcare apps — the mobile solutions for tracking and communication on health state,
3. Custom solutions — task-oriented software or a mobile solution designed specifically on the customer’s request.

Healthcare software development companies mainly focus on task-oriented solutions — to provide the most accurate result and ensure client satisfaction. Nevertheless, the highest aim of any technological introduction is to establish an all-in-one healthcare ecosystem. And so, a high-end software development company always offers a comprehensive set of services for healthcare organizations — involving IT consulting, mobile/web development, cloud technologies, and IT outsourcing.

While there is still a lot of uncertainty and challenges around the digital transformation in the Healthcare Industry, our expertise allows us to consider a variety of technologies, use cases, and solutions for a software consultancy.

Intellectsoft has strong domain expertise for advising the right solutions to solve particular business challenges and avoid pitfalls while delivering and deploying them. Find these and other answers to your questions by getting in touch with our healthcare experts.

What Is a Custom Healthcare Software Development

Healthcare institutions are different and offer various solutions. That’s why custom healthcare software development appeared as a customized solution to the needs of a client. Among various advantages, it can help medical entities establish a unified platform for storing medical information. As a result, each applicant can get results of higher inclusiveness, performance, and scalability.

In general, clients request custom healthcare software development when they need a specific solution to one of these problems:

• Optimizing the work with patient records
• Facilitating communication between caregivers and patients
• Ensuring the smooth formation and interchange of individual health plans and strategies
• Providing a better accuracy of diagnoses
• Cutting extra expenses

If you have any of these requests, you can request a custom solution.

Nearshore Software Development for Healthcare

When it comes to the specifics of the software development healthcare industry, it’s better to work under a cost-effective nearshore model.

Among all, this approach allows reaching the top developers and disregards the distance limits to a certain extent. Moreover, each country has different economic conditions, enabling healthcare clients to choose among various pricing models. Moreover, the nearshore solution accelerates the requested technological change.

When choosing the exact nearshore partner for your healthcare software, ensure this provider has these abilities:

• To protect intellectual property
• To ensure the safety of your app
• To give you real value-for-money
• To overcome the cultural differences caused by a distant business environment

The Specifics of Healthcare Software Application Development

In the sphere of healthcare, software developers dedicate significant attention to creating user-friendly and attractive apps. In the contemporary smartphone-obsessed world, the development focus on mobile apps had nothing but show up.

With this solution, the list of exact areas for improvement may include an appointment system, a platform for laboratory control, and a mobile nutrition app. However, the exact appearance and number of features depend on the sophistication of the design and the concrete needs of the client.

Reaching smartphone functions enriches the quality of medical service an app can provide. In particular, mobile healthcare apps’ features can include GPS navigation to the hospital, push notifications about the upcoming medical examination, and file sharing through electronic libraries.

The classification for medical apps includes such groups of solutions:

• For doctors — automation of medicine prescriptions, patient visits, and personnel communication
• For patients — options to make online appointments, get laboratory results and get push notifications
• For clinics — control over finances and equipment, service quality, and data flow
• For self-care — fitness and nutrition tracking apps to help people maintain a healthy lifestyle
• For health control — the set of mobile health applications that assist in tracking the main body parameters and treatment progress

What Are the Advantages of Healthcare Apps

Among the benefits top healthcare apps offer, medical organizations become able to guarantee the improved quality of service and boost client satisfaction. In particular, software solutions include electronic recording, enterprise content management (ECM), various kinds of CRM, and patient portals.

All these tools provide digital playgrounds for communicating complaints and suggestions, suggestions, resulting in greater transparency and instant responses to problems that occur. Here is the list of concrete advantages custom healthcare software development has:

1. Better synchronization and awareness of the health system for building individual patient plans
2. Wellness-centered approach
3. Meeting the growing demand for virtual health services
4. Improving the accuracy of treatment
5. Ability to address the problems of population health
6. Increasing consumer engagement
7. Improving security and control management of essential data
8. Getting access to the advanced technologies and alternative revenue sources they promise

Software Development Life Cycle for Healthcare

The specifics of healthcare call for adjusting software development practices for its needs. Here are the common steps for leading the medical software development process:

1. Requirements setting: collecting all the information around the healthcare organization to determine the needs to address
2. Prototype development: conducting assessments and gathering details to propose a raw solution
3. Design and programming: establishing a technological solution
4. Software testing: verifying the absence of errors, bugs, and other problems
5. Final adjustments: validating the software solution and delivering it to a healthcare institution

If your task is to create custom healthcare software, the action plan slightly changes:

1. Select the target audience — identify the tastes, preferences, and typical behavior of clients
2. Sketch the software architecture — establish the detailed idea of healthcare IT solutions that meets the needs and demands of your target audience
3. Elaborate UI/UX design — the customized solution requires closer attention to the usability and intuitiveness of an app
4. Protect the technology — involve encryption for data protection
5. Integrate the software — the customized solution is always a part of the IT infrastructure of an institution

What’s the Future of Software Development in Healthcare

According to Deloitte, the future of the healthcare sector is in working towards prevention and early treatment, not in dealing with symptoms of diseases. In this dimension, healthcare custom software development deepens this progress by creating space for open communication between patients and doctors. In the near future, we will witness the greater trust and effectiveness of the medical service provided.

This direction especially strengthens the human-centered approach in healthcare, meaning dedicating a huge effort to create value. In this case, patient portals are very promising. They link numerous advantages of solutions in the area, including optimization of treatment plans, easy tracking of health progress, and availability of online professional consultations.

Moreover, these benefits lead to a value-based healthcare system. From the standpoint of business, this approach results in greater brand management, reputation increase, and better service delivery.

The key trends of software development in healthcare are:

1. Focus on self-care and online communication (via a patient portal, especially). People become more interested in maintaining healthy without medical involvement and staying in touch with their doctors remotely,
2. Involvement of blockchain innovation. This technology contributes to democratization in the sector significantly. Specifically, blockchain safely discloses internal operations, making the exchange more transparent, trustworthy, and collaborative.
3. Expanded EMR software. In the new reality, each medical record will become digital and link all the specialties separated currently.
4. Telemedicine. This innovation creates close remote connections between physicians and patients, eliminating all the traditional barriers between them.
5. AI. The technology increases the accuracy of diagnoses and treatment plans.

Even though the perspectives of healthcare IT solutions seem bright, there are still some shortcomings that may arise. Among all, the introduced software should dynamically meet safety concerns, since this challenge is one of the most common for contemporary digital solutions. Moreover, Big Data causes problems with its management — which is, again, a serious challenge for software maintenance.

How Can Intellectsoft Help You Overcome the Greatest Challenge in a Software Development Project in Healthcare

Intellectsoft offers high-quality assistance in the design and development of various kinds of healthcare software. By referring to us, you can be sure the solution provided will serve you long, integrate into your digital ecosystem successfully, and manage the data accurately.

We empower companies and their workforce with cutting-edge transformative solutions and data-driven insights. Are you and your organization ready to shift the mindsets and get the most out of innovations?

Talk to our experts and find out more about the latest healthcare technologies and how your business or project can start benefiting from them today!

The post Healthcare Software Development: Industry Guide for 2023 appeared first on Intellectsoft Blog.

IT outsourcing strategies are key enablers of the sustainable competitiveness of the companies engaged in technology-intensive business. As a result of a successful outsourcing experience, the company can reap the benefits of enhanced dynamic capabilities, market-oriented innovation, strategic flexibility, agility, and increased efficiency.

The cooperation between an outsourcing company and a business will result in the development of dynamic capabilities that are related to knowledge management routines such as learning, sharing, integration, and reconfiguration.

In the article, we will dive into the types of outsourcing, define the term “outsourcing strategies”, their advantages and disadvantages, as well as will showcase the best practices for developing a well-performing outsourcing strategy. Let’s get started!

Facts About IT Outsourcing 

• The IT services market has an estimated CAGR of 8.4% and the IT outsourcing market 7.7%
• By 2025, the IT services sector is expected to be worth $1,070.28 billion
• By 2025, the IT outsourcing market potentially will be valued at $ 806.63 billion
• By the end of 2023, IT outsourcing expenses will exceed $1.3 trillion as companies increasingly look for digital transformation partners
• 64% of all companies outsource their entire development process
• 70% of the top reasons to outsource is cost reduction
• Big companies are 66% more likely to outsource than small businesses
• 24% of small businesses outsource to boost their business efficiency
• 78% of businesses feel positive about their relationships with an outsourcing partner

What Are the Outsourcing Strategies? 

Outsourcing means finding and hiring a third-party service provider to deal with certain tasks that are beyond the capabilities of the in-house team. Recently, the practice of working with external resources has grown into a trend as it brings a number of benefits to the outsourcers.

Outsourcing strategies are a plan built on the analyses and assessment of the functions that should be better performed by an external service. It means that the company defines tasks that are hard or impossible to perform with its own resources and starts searching for the companies that have all the necessary tools and qualified staff to deal with the task within the stated time frame.

The same goes for outsourcing strategies, as IT companies work in different directions within the field and might not have all the means to complete certain operations or implement new technologies on their own.

Types of Outsourcing: What Is the Difference?

Over the years, outsourcing strategies have developed and grown into different types that have specific purposes.

Outsourcing can be divided into:

• Onshore – you are looking for third-party services in your own country
• Nearshore – hiring from the neighboring countries
• Offshore – working with distant countries

In addition to this, outsourcing strategies are usually grouped into the following categories:

• Professional Outsourcing: your company lacks mobile app developers, so you decide to outsource the professionals who can fill in the gap and provide their services.
• IT Outsourcing: nowadays, small or large companies in any field have IT needs (infrastructure, software development, maintenance, support, etc.). It’s usually cheaper to contact a third-party IT service rather than build your one to deal with certain functions.
• Multisourcing: this strategy means hiring IT services in combination with other business functions.
• Manufacturer Outsourcing: if you want to produce products under your brand, you might look for a company (manufacturer) that already has all the necessary equipment and is capable of providing you services.
• Process-Specific Outsourcing: means to hire an outsourcing team that specializes in a narrow or specific service.
• Project Outsourcing: you have too many projects, and you cannot complete all of them, so you look for a company that will deal with one or a number.

What IT Services Are Usually Outsourced? 

Before you start building your outsourcing strategies, it’s important to also understand what IT services can be outsourced. It will enable you to request the relevant set of services that will help you achieve desired results within a shorter time frame. The most widely outsourced services it’s possible to name:

• Web development
• Application development
• Custom software development
• Website or app testing
• Application maintenance and support
• Database management
• Infrastructure management
• Disaster recovery
• Data Center management
• Data cloud storage
• Web security

 Primary Advantages of Strategic Outsourcing

The external cooperation brings a number of advantages of outsourcing strategy as the company can build a wide network of competencies linked by outsourcing contracts, from which necessary functions such as raw materials, components, and systems can be outsourced.

The company can build strong relationships and partner with external services to work on certain projects or tasks on a regular basis. It gives a chance to exchange knowledge and experience between the companies, to build tight, professional relationships, and develop managerial and communication skills of both teams.

In addition to this, outsourcing strategies can offer such advantages as:

Reduced Expenses

It is one of the most prominent advantages of outsourcing. It is common practice to be based in the USA or Western Europe but hire teams or individual specialists from Asian countries, India happens to be the most popular one. There are companies that offer their services at a lower price in comparison with the US and EU companies, but they have proven to be of high quality.

Better Efficiency 

Outsourcing results in higher efficiency, as you hire experienced teams who can deal with complex tasks and can provide the most effective and suitable solutions for your company. As they have a good understanding of the field and years of experience, productivity, and efficiency increase.

Focus on Important Tasks 

Outsourcing services will take care of the issue you are facing at all stages of the process. The CEO and managers of the company would be kept in the loop but they will not be required to perform any of the tasks related to the project. Thus, it gives them an opportunity to work on the other important aspects of your company’s development.

No Need to Invest in New Tech Tools 

Outsourcing service takes all the responsibility for the infrastructure and technologies. In most cases, they already have all the necessary tools to work on your task.

Skilled and Experienced Resources 

Outsourcing saves your time spent on recruitment and training of the specialists for the in-house team. Companies that provide outsourcing services have highly-qualified, experienced, and educated experts who will be able to complete the project.

It follows that outsourcing is also time-effective, as you do not have to spend years searching for the candidates and growing the specialists you need to support your business growth and development.

Main Disadvantages of Strategic Outsourcing

Though advantages of strategic outsourcing are prevailing, it still has a few disadvantages that you need to keep in mind as well. Among the top challenges that companies encounter while outsourcing are data security concerns, disaster recovery issues, as well as potential problems with data ownership.

In addition, it’s not that easy to maintain communication while outsourcing as usually, you are going to be located in different countries and even on different continents with the big time-zone difference. In its turn, it can create slower response time, potential misunderstandings, as well as a language barrier.

In case you collaborate with a reliable outsourcing partner you will manage to easily avoid these issues. Finding the cheapest vendor is not an option if you want to receive quality services.

Keep in mind that it’s paramount to check the outsourcing service before you have a contract with them. It should be a company with a good portfolio and customers’ reviews. It is recommended to contact previous customers in order to have a better picture of the company and make sure they have a good reputation and provide excellent services.

Strategies for IT Outsourcing: Things to Know

IT outsourcing strategies require the cooperation of several departments (legal, HR, operations, etc.), and the outcome depends on unified work and a clear business plan. Usually, organizations have only one goal for this strategy: to get the best technologies at the lowest cost. But it can lead to failure, and it is essential to take into account the tips listed above.

First of all, it is essential to have clear objectives, and your team should understand them. Another critical issue in external outsourcing is communication. Companies should make it simple and clear for both parties to understand the requirements, terms, and conditions of the cooperation.

Best Practices for Implementing Successful IT Outsourcing Strategies

It cannot be said that there are bad or good outsourcing strategies. The success of outsourcing depends on a number of aspects that every company should think of before hiring external services. Although IT outsourcing strategies described above have different goals, they all have the same structure. Thus, there are certain steps to follow in order to make it successful.

1. Outsource the right things for the right reasons: do not only fall for a cost-driven strategy but make sure that both outsourcing and your business strategies are aligned.
2. Define what you expect: develop a sound business case that outlines the business value of outsourcing and how this initiative supports your company’s objectives. In addition, develop an achievable and realistic plan for the end product you and your outsourcing partner can rely on.
3. Prepare the documentation: in order to make the collaboration between you and an outsourcing partner effective, you need to prepare all the relevant specifications and requirements to proceed with the development right away. At the end of the article, we have prepared a quick checklist that will help you make sure you have all the necessary documents ready.
4. Choose the right vendor: the vendor should suit your needs and be capable of completing tasks of any complexity. Take your time and research the company’s reviews on the Internet as well to see what their previous clients say about them. Also, do not underestimate your in-house staff and make sure that senior management is involved in the process.
5. Pick the best-matching engagement model. There are three main different approaches to collaborating with an IT outsourcing company so research each option. Before you make your final decision, it’s crucial to know what financial resources you are ready to allocate for the development process. Once you know your budget, you will be able to choose the right engagement model that will help you get all the work done that will fit into the budget that is most suitable for your team.
6. Create an effective contract: it should reflect strategic goals and clearly define expectations for the vendor and the company. It’s the legal basis of your partnership so pay close attention to this aspect.
7. Track the process: make sure that you are getting what you have paid for. The reporting on the project’s progress and transparency are extremely important. It would be highly recommended to clearly define your KPIs so you can easily track your progress and make sure everything is done in a timely manner.

These are the aspects that companies should keep in mind in order to outsource external services successfully.

Bonus: Checklist for Outsourcing Efficiency

Before you even consider outsourcing your software development services, it’s important to go through the preparation stage. Make sure you can answer the questions below.

1. Are you and your team clear about the main task or project that you are planning to outsource?
2. Do you have all the documentation ready such as an outline or manual describing in detail your future project? Make sure it contains the following information:

• Specific task/project description
• Main technical requirements
• Description of a customer problem that you want to solve as well as the possible solution
• Expected results
• Overall project budget
• Deadlines
• Technical skills that you are looking for
• Who will be responsible for managing the whole development process and being a contact point with an outsourcing vendor?

Once you have all this information ready, you can establish your collaboration with a software outsourcing company. It will help your partner quickly and easily understand their primary task and start the development process as soon as possible to deliver the quality results you expect.

IT outsourcing strategies: Bottom Line 

As you can see, outsourcing is a very cost- and time-effective option when it comes to software development and digitization initiatives. However, it should not be treated as an easy path to take.

In order to make your collaboration with a chosen IT outsourcing strategy partner, you should take your time for the preparation stage. Having a clear and detailed plan for the process will help you make everything successful and will bring you a number of business advantages.

Don’t hesitate to talk to our experts today to find out more about the topic and how your business or project can start benefiting from it! We have dozens of qualified professionals with relevant experience who can help you not just with defining your IT outsourcing strategies but also be instrumental in building an innovative solution that will ensure your ultimate growth.

The post How to Come Up with an Effective IT Outsourcing Strategy for Your Business appeared first on Intellectsoft Blog.

The IT outsourcing market was valued at $ 526.6 billion in 2021, and it is expected to reach $ 682.3 billion by 2027, registering a CAGR of 4.13% during the 5-year period from 2022 to 2027.

It is no surprise as more and more companies have become interested in requesting development services overseas in recent years.

After entering the international market, the offshore software providers now present various prospective opportunities to the established companies in the US and Europe.

Offshore development services are generally performed in countries where labor cost is much lower than in the country where the services are received, which is extremely convenient for business owners and profitable for outsourcing IT organizations.

If you have decided to outsource your software development, the first thing to do is to define your main remote team management tactics. Despite all the amazing benefits of outsourcing like cost-effectiveness, speed, and top-notch service quality, it is really challenging to manage an offshore development team located miles away from you.

So, in this article, we will teach you how to manage an offshore development team effectively and analyze the best practices for managing offshore resources.

The Importance of Outsourcing Software Development

Outsourcing has become a promising alternative for companies that have already experienced a talent shortage and now want to enhance their business performance.

According to McKinsey, over 87% of organizations either already encountered or expect to face this issue in a few years. For the offshore team of professional developers, it is just a perfect time for offering their services to various companies.

Benefits of Working With Offshore Development Teams

1. Cost-Effectiveness

Both sides will get the benefits: for the offshore development teams, it is a new ground for work, and for the companies — a more cost-effective method for getting talented employees.

2. Flexibility

Outsourcing software development gives you plenty of flexibility starting with the technical skills you want to obtain for your project, ending with the budget for a specialist and your collaboration length.

3. Access to a Wide Range of Skills

Outsourcing gives you unique access to a wide tech talent pool so you can choose professionals with different levels of expertise and different technical backgrounds according to your business needs.

4. Quick Start of the Development Process

You don’t have to waste time searching, recruiting, and training the relevant professionals. Outsourcing enables you to select from different specialists offered by your IT partner so you can start the development process right after signing the contract.

Challenges of Collaboration with Offshore Software Development Teams 

However, there are still some points to consider before starting to cooperate with the offshore development team. Thus, you will be able to get ready for the various challenges while managing offshore development teams and find the best solutions for any issue.

• Time-zone differences. If the development team is located really far away, you can fail in its management;
• Language barrier. Without establishing the right communication, it will be extremely difficult to create an effective workflow between you and an offshore development team.
•  Cultural differences. Asian developers have their own cultural peculiarities that you will have to deal with. If it’s an option, opt for Eastern European software development.
• Poor communication. If main requirements, project details, and daily tasks are not communicated effectively, chances are that the end result won’t be as you expect.
• Remoteness. Not all companies know all the pitfalls of managing offshore development teams located overseas. It creates plenty of challenges so coming up with a management strategy is obligatory before considering outsourcing.

Effective Tips for Managing Offshore Development Teams  

So, what are the main ways for enhancing the workflow and improving the communication with your offshore development team? Here are some effective tips for you on how to manage an offshore development team:

#1 Develop a Clear Product Vision and Explain the End Goal

If you want to get quality results and smooth collaboration between your organization and an outsourcing team, it’s not enough to just assign the task and expect it to be done. Managing remote software development team requires much more involvement and effort. The primary thing to do is to share the general picture of your product and clearly explain your end goal.

The developers need to understand what your company is all about, what is your main vision, mission, and values, what product you want to create, and what user problems to solve with the final application or software.

Once they are aligned with all the important details, software engineers will be able to make more well-informed decisions during the work process and ensure the desired progress and quality.

# 2 Build Detailed Product Documentation

Another important thing that is required in order to make your offshore team management as effective as possible, is creating detailed and informative product documentation. It’s obligatory if you want to create a modern top-notch quality product. It will help software developers to stay aligned with all the requirements, prevent code failure, and will also help you avoid a potential technical debt.

# 3 Set Accurate Deliverables and Milestones

The deliverables and project milestones are the solid basis for your success with offshore development teams. Before the work even begins, you have to invest your time and effort into the research and planning phase.

Defining key performance indicators, milestones and deliverables will help you track the progress and evaluate the project’s success.

# 4 Consider the Key Project Knowledge

The employee onboarding process is one of the main aspects which every company should certainly pay attention to, as it can considerably influence the working performance of your new staff.

By providing all the project knowledge to your team extension members, you will be able to organize the processes more effectively and get the work done much better.

Furthermore, you can create a database for each project, and share it with your software developers. Thus, it becomes much easier for the development team to get started with the new project and run it effectively.

#5 Establish Clear Communication

Needless to say, communication with your offshore team is also critical for performance. However, the language barrier can sometimes make it difficult to present the tasks for your workers, especially for those who aren’t fluent in your native language.

For this purpose, use the specific software targeted at providing clear communication between the company members, like Outlook emails, Skype, or Zoom. That’s a quick and effective way to communicate with your developers and seek clarity where the verbal communication wasn’t clear.

It’s paramount to match your schedules and have regular calls to make sure that everything goes as planned and there are no bottlenecks for your offshore team.

The communication between you has to be as transparent as possible so don’t forget to provide instant and clear feedback to prevent any potential misunderstandings. As a result, you can easily track the progress and always point out the critical issues to the offshore software development team.

Additionally, it is a great option to regularly arrange the meetings for Q&A sessions during the project completion. This tip can greatly improve the workflow performance, so the project will be done much faster and better.

#6 Focus on the Working Conditions Improving

The skill gaps issue is the one every company has experienced at least once in their practices. And this issue becomes even more clear when you manage a team that gets constantly reshaped, as you lose a lot of time, resources, and investments on the employees’ onboarding and orientation.

That is why companies have now realized how difficult it is to find and how important it is to retain qualified and talented workers.

By improving the working conditions, and providing them with professional growth, training opportunities, and fair compensation, you will be able to prepare a professional offshore development team.

Make your company attractive for the new talented employees, and try to build trustful, loyal and healthy communication between the teams, which is a must for a successful partnership.

#7 Use the Defined Tools for Work

The common problem of the offshore development team is that remote software developers can’t understand the project’s core idea and solutions. One of the main reasons it appears — is the inconsistent development environment across the teams.

As a result, you can get the poor quality of software, late detection of bugs, and a list of core integration issues.

To resolve this problem, it is critical for all remote developers to use the defined tools for software development, control, and improvement.

This will help you to make sure all the essential processes are done according to the project plan, and greatly help you to manage an offshore development team effectively.

# 8 Motivate Your Team

Managing offshore development teams and maintaining the good productivity level of remote employees ain’t easy. The last but very important advice is always to motivate your offshore development teams.

Both the in-house workforce and externally hired specialists need the same level of encouragement to achieve top-notch results. It’s even more critical if we are talking about long-term projects.

Choose your own motivation strategy. Whether it’s investing more money on business trips to meet your newly hired staff to add more personal touch, individual video calls with each team member to have strategic sessions, organizing an informal corporate event to let them simply have fun after work, or any other motivation technique that works for your company — go for it and you will have result-driven employees who will work effectively in the long run.

What Are the Hidden Costs for an Offshore Development Team?

For sure, managing a remote team of developers implies huge investments in working resources, time, and costs.

Nevertheless, it is still much more cost-effective to hire offshore developers, as you will get the same, or even better quality of services with paying less money, that is why companies have already been using this model in their workflow.

The additional expenses you should keep in mind usually include

• the onboarding and orientation processes;
• procurement of equipment;
• company database creating;
• offshore workflow organization and management;
• workshops organizing and knowledge sharing, etc.

Though the costs may depend on the company’s specific targets and working processes, more and more companies find these methods really effective for managing offshore development teams.

Having mastered the offshore working processes once, your company will be able to hire talented workers from different parts of the world.

Furthermore, by enhancing the internal workflow processes of your company and the offshore teams, you will significantly increase the quality of the projects done and take your company to the next level of development.

Bottom Line 

All in all, offshore team implementation now has become a useful and profitable method for companies to perform their tasks effectively.

However, there are still some points to consider before hiring the offshore development team as it implies planning and managing the communication, workflow, project targets, knowledge, etc.

But having created a dedicated development team, the companies can actually get a lot of benefits for their development and ROI improvement.

We know how important and challenging remote employee management may be. That’s why we shared our practices on how to manage an offshore development team. Our professional team at Intellectsoft, empower various companies and their workforces with innovative solutions and modern approaches.

So, if you and your organization are looking for an offshore development team, talk to our experts and find out more about the topic and how your business can get the full advantage of collaborating with an offshore team!

The post Golden Key to Managing Offshore Development Teams Effectively appeared first on Intellectsoft Blog.

The latest research unveiled that 69% of enterprise architects have hardware dependency as the main reason to modernize their legacy systems. Speaking of CIOs and Heads of IT departments, they consider business competitiveness (65%), security (58%), and integration (54%) as the primary reasons to transit to a modernized system.

The solution to this problem is clearly legacy system modernization. However, in order to successfully complete the transition, it’s paramount to understand the essentials of this time-consuming process.

It’s worth noting that according to the Mainframe Modernization Business Barometer report, 74% of organizations have envisaged a legacy system modernization project, but failed to complete it.

The modernization of legacy systems is quite challenging so before even beginning, you have to dive in to avoid the mistakes of those businesses that failed. If you want to know more on this topic, keep reading this article to find out what a legacy system is, what legacy system modernization approaches are, and so much more. So let’s get started to have all your questions answered!

What Is a Legacy System?

Let’s begin with defining what exactly a legacy system is. Basically, it’s an information system based on outdated technologies, and replacing them will lead to the interruption of systems functionality. Such a system blocks future business development, doesn’t enable the smooth integration of new features, and significantly slows down the daily operations.

Simply put, it’s very difficult to maintain and extend. In addition, legacy systems involve plenty of hidden costs for maintenance, security, compliance, and lost business opportunities that devour your budget. The indispensability of legacy system modernization is required not to drag your business down and to minimize risk exposure.

What Is Legacy System Modernization?

This definition is very straightforward as it means updating all or some parts of your existing IT legacy system to improve all business processes and achieve main company goals. Usually, it’s a switch to a modern programming language, and software libraries/protocols to avoid all risks and inconveniences of an outdated system.

The modernization of a legacy system is an integral part of driving the latest innovations and getting the most out of them. Legacy software requires some solid resource investment for its maintenance, and it’s very difficult to find a qualified specialist who can support the outdated system.

In addition, it’s hard to integrate legacy systems with new features and systems as there is a big risk that it would crash at any time and disrupt all the internal processes. Such software is so inflexible, so making any improvements is almost impossible. In order to eliminate this barrier and prevent your business from having a significant technical debt, don’t postpone the modernization of your legacy applications to stay competitive.

6 Top Reasons to Consider Legacy System Modernization

1. Reduced Maintenance Costs

After modernizing your legacy system, operational and maintenance costs will be drastically reduced. All tedious and time-consuming manual tasks will be automated and there will be no need for costly developers to maintain the system.

In addition, no costs will be spent on employee training, hardware components, and technological upgrades. According to multiple reports, companies spend around 60-85% of their IT budget to upkeep the outdated systems, therefore failing to achieve their main business goals that are aimed at improving ROI. And it goes without saying that the expenses for maintenance of legacy systems will only increase in the future.

2. Improved Compatibility

Those companies that rely on their legacy system always face plenty of compatibility issues and it’s quite challenging to adopt new IT infrastructure. As a result, a lot of time and financial resources are channeled into keeping the legacy system running.

It’s paramount for your system to get synced with the newest applications and tools. With legacy modernization, the systems will be up to date with the evolving technologies which will enable smooth and seamless integration. It’s pivotal to re-engineer the outdated software to reinforce business operations. By introducing the future-driven technologies, you will afford better functionality, and ameliorate your software’s compatibility and user-friendliness.

3. Minimized Risks of Security Threats

Needless to say that the decent level and quality of the company’s security is imperative. Unfortunately, due to their vulnerable and obsolete nature, legacy software is a perfect target for malicious activities. They are much more prone to data leakage, malware, and their resistance to cyber-attacks and data breaches is significantly lower in comparison to modern systems. Moreover, disaster recovery and data backup are also a big concern.

It all can cause several serious problems to the functioning of your enterprise. The absence of security updates and lack of compliance with modern security standards put the company with the legacy software at high risk. After the technological refreshment and modernization of legacy systems, you will be able to minimize those risks of security threats and protect business-critical data.

4. No Hardware Dependency

Another big issue is the fact that legacy software depends on in-house hardware. Technologies evolve very fast and right now most companies already made the transition from on-premises to cloud platforms. This is a much better and more efficient solution that can also reduce infrastructure expenses. By modernizing your obsolete software and switching to the cloud you will ensure better accessibility that will have a positive impact on the overall company performance.

5. Optimized Business Processes and Business Continuity

With the modernized system, you will be able to better serve your customers and significantly improve the overall user experience which will ensure the ultimate business continuity and exponential growth. It will enable you to offer the most convenient and automated services.

Speaking of the business operations, your legacy software can not completely support it as you grow. Over time, it starts slowing down and crashing regularly. It hinders your capacity to adopt the latest innovations and doesn’t meet your fast-changing business requirements. The modernization will allow you to leverage evolving IT architecture so you can expand your operational activities and effectively manage your business needs and make your workflows more efficient.

6. Better Performance and Productivity

Your internal IT resources are the most valuable asset of your organization and their work time drives your company forward. Obsolete legacy systems are a serious obstacle in the daily workflow of employees as very often they have to complete different tasks manually which is very time-consuming and counterproductive.

A refreshed automated system will enable you to streamline all activities, optimize the performance of your teammates and boost productivity and efficiency. It requires much less input from your software engineers so they can concentrate on the tasks that will bring tangible value to your business. System enhancement can assist you in overcoming potential bottlenecks and inefficiencies. As a result of increased productivity, you will reduce the costs, downtime as well as manual labor of a priceless workforce.

7 Legacy System Modernization Approaches

1. Encapsulating

This is the technique that implies reusing the core legacy software components. At the same time, you omit the legacy code and leave it in its environment, and it will be connected to the new access layers via APIs. This approach will enable you to extend the features and bring more value to the system.

Your old components will be provided with the new interface to leverage the overall software functionality and improve the accessibility to other system components. It’s worth noting that the encapsulation approach won’t be able to fully resolve the maintenance and upgrading challenges, however, it has the full potential to reduce your costs and minimize potential risks. This option will be applicable if the quality of your code is already good and your legacy software already has a huge business value.

2. Rehosting

The rehosting approach enables easy redeployment of an application component or the whole system to another infrastructure (for example, cloud, virtual, or hardware environments). It also doesn’t require modifying or recompiling any code parts, features, or functions. Even despite the fact that this approach is usually just one of the steps in the migration process, it will help you cope with support issues connected to open systems like SQL or cloud environments.

This technique involves low risks and because of it, many big enterprises opt for this particular option to amend their performance without disrupting the workflows. This option will be of the lowest cost and implementation risk for your company and it will have zero negative impact on business processes because of the high speed.

3. Replatforming

The replatforming approach enables you to migrate the legacy system components to a new platform while applying minimal changes to the code in order to adapt the renewed platform to the new organization’s needs. The code structure itself as well as features and functions don’t undergo any changes.

This option is very convenient for those businesses that are not willing to modify the system a lot or are concerned that users won’t be able to effectively use the system. It’s important to understand that those minimal changes mean that you will only be able to adapt to the new system components and others won’t stay up to date with the current market.

4. Refactoring

Refactoring is the process of restructuring and optimizing the internal components of your old software without changing its external environment. It’s the best solution to get rid of your technical debt and improve the components’ features and structure.

If you opt for this approach, it will allow you to make modifications in the configuration, and improve the quality of your code while eliminating tech issues, and making it more maintainable and clear. The refactoring technique will make your system flexible so it can be adjusted according to the current organization’s needs.

5. Rearchitecting

This particular approach means altering the system so it’s possible to shift to new application architecture and get full advantage of the much better capabilities of the platform. Rearchitecting is the technique of medium cost and risk as it can change the business logic and the way the system functions in general. But in the end, it will allow you to resolve the main performance and scalability issues that you previously encountered.

You will get plenty of benefits that will help you significantly improve the system functionality and streamline the innovative features integration process. We should warn you that this process is very complex and requires some solid tech skills.

6. Rebuilding

Rebuilding, also known as redesign, is a technique that consists in rewriting the system components from scratch while preserving its specifications and scope. It could be considered a convenient custom solution for your organization. The legacy system components are rewritten according to the new business vision, and the process gives you access to new features, better functionality, and the possibility to effectively leverage the capabilities of the latest technologies and third-party platforms.

With the new coding techniques, it’s possible to reduce the development time, ameliorate security, as well as generate custom network protocols. However, you should take into account that this approach is more high-risk as a lot of changes are being made to the original system.

7. Replacing

The last modernization approach is replacing which implies eliminating the old software components and replacing the entire app with a new tool that corresponds to your current business requirements and needs. Do some research and analysis, come up with new business logic and adopt a new system that will have up-to-date and relevant functionality.

Which One of Legacy System Modernization Strategies Will Work for You?

You have just made sure that if you take the road of legacy system modernization, there are various approaches that you can opt for. But how can you choose which one is the perfect solution for your company and will work best for you?

The decision-making process will be tough due to a wide range of options. It’s important to understand that every legacy system is unique and you have to thoroughly analyze your existing software to know how to move forward. What can work out for one company can be an irrevocable mistake for another.

In case you don’t know what to do next, it’s better to consult with an experienced company knowledgeable in legacy system transformation. You can feel free to book a free consultation with Intellectsoft specialists who will guide you through the process and will help you make the best well-informed decision that will start your path to modernization.

Final Thoughts on Legacy System Modernization

No matter what approach to legacy system modernization you choose, it’s a very risky and complex process. Nevertheless, you should understand that the final result will definitely be worth all the contributions. The digitalization across industries will be only picking up pace, so going through modernization of your systems is inevitable and the sooner you start it the faster you will take your company to a whole new level.

At Intellectsoft, we have gathered the most skilled and experienced industry specialists who have robust expertise in offering legacy software systems modernization across industries and are familiar with different approaches to the process. It’s the right time to start renovating your legacy systems to boost your business growth through the power of technology.

Don’t hesitate to contact us and get more details regarding our legacy system modernization services. Our dedicated specialists will guide you through the processes and will provide you with all the information you need.

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