When choosing between In-house and Outsourced Software Development, tech leaders often face a tough decision. While each case demands a unique approach, in general, more and more companies are picking the hybrid approach.
In 2023, approximately 65% of companies worldwide embraced the hybrid model (not to be mistaken with a hybrid mix of working from home or office). This marked a dramatic increase from 50% in 2022. Projections indicate that by 2025, nearly 82% of businesses are expected to adopt hybrid models.
As a CEO at Smartexe I worked with numerous managers who made the shift to hybrid software development and witnessed how it can boost productivity. Below, I share some insights and practical tips to help you make the most of this model.
From a bird’s eye view, the hybrid approach lets you combine the deep knowledge of your in-house team with the diverse skills available through outsourcing. This mix offers the best of both worlds—greater flexibility, scalability, and the ability to stay competitive in today’s fast-moving tech landscape.
But Wait, What Is a Hybrid Software Development Model Anyway?
The hybrid model means that you combine outsourced developers in addition to its core team. This approach enhances a client's existing team with remote developers, forming a unified team that capitalizes on shared expertise and skills. Such hybrid teams are especially beneficial for projects that demand quick scaling or broadening the technical capabilities.
This model allows businesses to respond flexibly to project demands without the burden of hiring more full-time staff.
Typically, an initial hybrid setup from Smartexe includes a small team of developers and a QA engineer, who seamlessly integrate with the client’s current team to drive project success.
Strategic Benefits of the Hybrid Model:
Leveraging In-House Expertise. Your core team's intimate knowledge of your company’s mission, history, and long-term objectives is invaluable. In-house professionals maintain and strengthen the foundational aspects of your projects, ensuring that every piece of software aligns perfectly with business goals and existing systems.
Enhanced Flexibility and Scalability. A key advantage of the hybrid model is the agility to scale your team according to project needs without the constraints of local hiring markets. This flexibility enables you to manage costs effectively, reduce time to market, and adjust your strategy in response to feedback or changing market conditions
Cost Efficiency. Balancing in-house and outsourced development efforts can significantly reduce costs. By outsourcing certain development tasks, you can optimize your budget and allocate resources more strategically, focusing in-house efforts on core competencies that drive the most value.
Geographical Diversity: Hybrid teams consist of members working both at the company's headquarters and from various global locations. This setup allows access to a wide range of talent pools, harnessing unique skills and perspectives not bound by regional limitations.
Risk Mitigation. Hybrid models distribute the developmental risks by not putting all your eggs in one basket. With teams both in-house and outsourced, you mitigate the impact of potential setbacks, such as turnover or market fluctuations, that might otherwise jeopardize an entirely in-house project.
Best Practices for a Hybrid Software Development Model
Proper integration of the hybrid software development model is critical for leveraging its effectiveness. Here are some tips to get this model started on the right foot:
Define Clear Roles and Responsibilities Ensure that in-house and outsourced teams understand their roles and how they contribute to the overall project goals. Seems trite, but I find this mistake occurring again, even in the most goal-oriented companies.
Establish Strong Communication Channels and Rules Communication is everything and setting it up properly is a key to successful work practices. It’s not only about tools, but how to use them, when, and why.
Consistent Sync-Ups Regular synchronization meetings are crucial. Yes, even more syncs than in the non-hybrid model. Unfortunately, there’s no way around it.
Clear Performance Metrics: We use data-driven approaches to monitor and evaluate the performance of our hybrid teams, and leave subjective tools aside. Many biases can fail subjective evaluations when working with international teams.
Adopting a hybrid model is a strategic choice that can benefit any software development company. At Smartexe, we’ve found that while this approach has its challenges, the gains in flexibility, job satisfaction, and productivity are worth it. By following these best practices, you can unlock the full potential of your manpower.
Looking for an offshore team that will smoothly integrate with your in-house staff? Let’s talk.
