Is IT outsourcing right for your business?

After founding Solidstudio, Pawel was an originator in terms of pursuing expertise in eMobility. With the build-up of a solid knowledge-base on industry’s needs & wants, he now keeps a close eye on products’ development. He’s also hugely responsible for the business’ side and designs the business models for our products.

Paweł Małkowiak

What is outsourcing? Put simply, outsourcing is a business practise in which jobs and/or services are assigned to a third party. Outsourcing is used regularly across a number of different industries, including information technology services (IT).

When it comes to IT, an outsourcing agreement can cover everything from the development and management of an entire IT system, to more targeted, specific tasks such as software and web application development, system recovery and network services.

The idea of IT outsourcing in itself is simple; developers providing an IT solution to a business need. But why not just get the job done in-house? There are pros and cons to both solutions, which we’ll explore in detail. But first let’s take a closer look at the different types of IT outsourcing services typically available.

What is outsourcing: Types of IT services

A quality software company will be able to offer a wide range of IT outsourcing services from highly qualified, expert developers. 

 is one such company, offering services in the following areas:

It’s possible to get every IT service required via an outsourcing agreement, but why not employ skilled developers to do it in-house? Here we’ll take a closer look at how outsourcing IT services compares to having your very own in-house team of experts.

 If your business lacks the technical expertise to handle complex IT issues, outsourcing is an excellent solution. Solidstudio has a team of highly experienced developers, able to provide expert help across a broad range of IT services

 Farming out jobs to third parties might seem like the more expensive option, but as a rule, outsourcing IT services is generally more cost-effective than employing a dedicated IT team on temporary or permanent contracts.

 Outsourced IT support almost always comes with 24/7 support, as is certainly the case at SolidStudio. Services offered are designed to support individual needs, plus Solidstudio offers a three-month guarantee on any of its services. If issues are found in that time after build, the company will fix it for free.

 Things like data privacy, data and content ownership and recovery can all be causes of concern when outsourcing IT services. However a quality development company will allay any concerns from the off, with clear agreements in place as to the level of service a client should expect. Service Level Agreements offered by SolidStudio, for example, outline the way issues are prioritised, response times and what happens if these KPIs are not achieved.

So you get a whole lot of expertise for less money - seems too good to be true, right? It’s certainly the case that outsourcing IT services works for many, but what about having your own in-house team? Let’s see how that compares.

 One of the biggest advantages of having a dedicated IT team is the ability to build a bespoke system, which draws on the skills and expertise of each individual. As permanent employees, these staff members are invaluable, with in-depth knowledge of the company’s specific requirements and systems and on-site to handle any major issues quickly. There’s also the added benefit of a security breach threat being much lower than when outsourcing this work to a third party.

 While there are huge benefits to having a bespoke IT system, the reality is building them takes time and significant initial outlay. In order to really make it worthwhile, a business must have a very clear plan on what skills will be required in order to build the system for the long-term – and this can be difficult to predict, even for the most forward-thinking leaders.

 Employing skilled developers doesn’t come cheap. And recruitment costs, annual salaries and training costs are sure to make a significant dent in any budget. Training is particularly costly, with the IT industry constantly evolving, it’s vital developers stay up to date with the latest technology in order to provide the best possible IT systems.

 Relying on a few people to manage an IT environment might be the most cost-effective solution, but isn’t always the smartest. A small team will undoubtedly have knowledge gaps, and then there’s the issue of who covers when sickness and holidays arise.

There is no one-size-fits-all solution when it comes to IT support. Sometimes a mixture of both outsourcing and in-house options work, other times going 100% into one or the other is the best way forward.

If you think your business might benefit from outsourcing IT services, start by finding a quality technology partner that understands your business and can offer the service that best fits your needs. For information on or more help with outsourcing IT services, contact us here.

Outsourcing can be a great alternative to traditional in-house developers. Here is why.

True cost of software outsourcing - how can you meassure this?

Software development outsourcing is the term used when a technology company is hired to create and build a business’ IT systems. A hugely beneficial practise, outsourcing in this way can help small to mid-sized companies in particular not only gain a competitive edge, but significantly reduce costs and implementation time.

While the premise of software development outsourcing is quite simple and its benefits clear, finding a reputable company to deliver such services can be a challenge. Google ‘software development companies’ and the result is seemingly endless pages of vendors offering their services at competitive rates. So how do you know which of those developers will properly fulfill your needs and offer true value for money?

Knowing what to expect from a vendor, from both a service level and cost perspective is vital before choosing the best 

 for your business. There are a number of considerations that will help you identify a reputable software development company, all of which are detailed here, plus how much you should expect to pay for such services.

Software development outsourcing: What to consider

Outsourcing software development involves a significant level of trust from both parties to work successfully. More often than not, a business will have to share confidential and valuable data in order to get the IT systems it requires. Any reputable software development company will understand this and offer a service that not only meets a brief from technological perspective, but a human one too. To find a tech partner who will do just that, look out for vendors with the following attributes:

 – A reputable software development company will be sympathetic to their line of work being highly specialised, and will therefore help clients form requirements, ask difficult question and make sure all parties are completely clear on the business’ objectives

 – Making sure a software development company has the right skillset to fulfill technical requirements is vital, as any gaps in knowledge could lead to costly delays. A close look at a vendor's portfolio will give a good indication of whether the team possesses the correct skills, across the most relevant technology.

 – The more senior a team, the more business-orientated it is. A good way to gauge experience levels is to look at ‘Meet the team’ pages and see what percentage senior developers account for.

 – While a project might need multiple developers input, it’s a good idea to choose a vendor who will assign developers to one project at a time. Not only will the sense of ownership help increase a developer’s output, but means each project has one firm point-of-contact.

 – Any software development company worth it’s weight will help a client see past the ‘now’ with any technical requirements, and offer the expertise to scale a project up or down as needs and situations change.

 – Developers are in high demand globally, but that shouldn’t mean waiting long periods for projects to get off the ground. At Solidstudio, development can start in a matter of weeks, with the initial planning phase up and running in a matter of days.

 – A quality software development company will stay in regular contact with clients for a project’s entirety. At Solidstudio, weekly and biweekly calls are standard practise. Clients are also invited to join internal communication channels and are welcome to dial into daily standups if they so wish.

 – The last but one of the most important considerations of all. A quality software development company will be completely transparent at every stage of a project’s progression. From planning and implementation, to costs and potential issues, any work completed should be visible to the client, at any point. Be wary of talk of or signs of further outsourcing from within the vendor – this is also a major red flag.

Software development outsourcing: How much should it cost?

So now you know what to look for in an outsourcing software development company, the next big question is how much should it cost? Giving an exact figure here is almost impossible for two main reasons; firstly, because every project will have different requirements. And secondly, creating a digital product is a process of constant change, and therefore an estimate provided at initial contact stages could easily change (sometimes significantly) as the project evolves.

In order to get a realistic estimate, the best first step is to spend a good amount of time considering what your product requirements are and drawing it up into a project specification document. This should broadly outline how the required software should function, in both the short and long term, which will help vendors understand what level of work and seniority is required. It will also help avoid any misunderstandings in the development cycle and costly delays.

After sharing this document and an initial consultation with your chosen vendor before any work is carried out, you should expect an estimate based on an initial assessment of how much work is involved and the level of seniority it will require. Solidstudio has a track record of smaller end-to-end software development projects over a three-month period, as well as bigger, on-going projects and so can quickly offer very accurate initial estimates. These would include costs for:

It is worth reiterating costs can (and almost certainly will) change as a project evolves. Be wary of low estimates, cheaper estimates don’t necessarily offer the best value, and can often include hidden costs that soon add up. Reputable software development outsourcing companies will be completely transparent when it comes to costs, keeping clients abreast of any changes, and ensuring to check before undertaking new work that might add to the bill.

 is often best suited to IT outsourcing. This pricing method means fees are configured based on the amount of time spent on a project, combined with the cost of the effort (materials) used in the process. Solidstudio works to an hourly rate structure of $40-75, depending on the level of seniority required, with management overlay kept to a minimum.

For more information on software development outsourcing, or for an estimate, contact the Solidstudio team!

True cost of outsourcing - how can you meassure this? Read our article to find out.

Software development outsourcing: what to consider and how much does it cost?

Keys to success for remote software development team

Being an eMobility leader in various projects across multiple startups, Piotr was responsible for OCPI and OCPP integration as well as EMP and CPO platforms development. With extensive expertise in the open standards field and eMobility tech solutions, he is leading teams of experienced developers and contributing with invaluable knowledge and experience.

Piotr Majcher

Remote software development team best practices

Remote work is very popular nowadays. In an ideal world, every CTO would have unlimited access to talented people living nearby the office and having the expectations their employer may fulfill.

Different reports present different numbers, but in general, the demand for software developers is still much higher than the supply for a long time. So, remote work is sometimes the only option to increase a company's capability of doing their main business.

But how to be a good partner to a company when you see each other only a few times a year?

To do remote work effectively, you have to be really proactive. If you aren't active on Slack, you become invisible to the client. Answering emails after 3 days is not an option. Probably you're doing your job, but to give your client the feeling that you are part of the company, you just can't ignore public discussions, not answer open questions, etc.

What I've observed is that the number of people actively involved in meetings is not linearly dependent on the number of participants. In 3-people meetings, it's highly probable that everyone will have something to say. But when 13 people participate, I would be surprised if more then 4-5 people were involved. Can you afford to be in this quiet group?

People working on-site see each other for a few hours a day; they have many chances to talk. But for remote workers, it's sometimes the only chance to talk to some people with whom they work on a daily basis. It's good to seize the opportunity. But to do it well, you have to be prepared, ask the right questions, and offer solutions.

One of the most important things when working remotely is trust. I think that being transparent is the most important factor that may help in building relationships based on trust. I identified two main areas where being transparent is critical for remote teams:

Before I started to work as a member of a remote team, I was working in an IT department of a bigger company. We would sit together for 8 hours a day. Even if someone had to be off for a few hours, everyone knew about it. The popularity of flexible working time is something really great in our profession, but when working remotely, you have to remember that your client does not sit next to you, and it's always good to inform them upfront about longer off times.

Estimates come with some inaccuracy by definition. It may sometimes happen that you fail to deliver some feature or fix a bug on time. When working on-site, everyone sees you trying to deliver an underestimated story. It's not so visible when you work so hard off-site.

Use existing processes (for instance, daily standup) to talk about problems as soon as you identify them. Inaccurate estimations are acceptable if they have real reasons. But informing about delays is almost always required, and not being transparent here may undermine the relationship you have with your partner.

A casual developer's day consists mostly of coding and meetings. The number of meetings often depends on the seniority, but if you work in a Scrum team, you have about 4 mandatory meetings in a Sprint plus daily standups. Not too much. So you can be focused on tickets, and probably that's why you were hired as an external team member.

But can you do something more for the client? Are there any problems with the existing process you see, and you have an idea of how to improve it? Or maybe there is no space to share the technical news or interesting presentations with other developers, and you think it would positively influence the company's technical culture? There are many options to not only be a coder, which in remote teams is very important.

It's strange, but IT companies building cutting-edge solutions sometimes have problems with basic technical things like the internet connection or setting up meetings with screen sharing and audible voice. It's very similar to developers having problems with the microphone or headphones.

You probably meet developers experiencing such problems often, and those that have it rarely or never. I bet both groups have the same types of problems, but one simply identified the root cause and solved it right after it occurred for the first time.

You may have some issues once, maybe twice, but if you have some problems constantly, it means that you are not paying enough attention to them. If you work remotely, a proper audio setup is a very important thing in your toolbelt.

The list above contains things that are important in professional work, no matter if you work remotely or not. But when being on-site, you get many opportunities to minimize the consequences of not remembering about them. When you're not sitting in the same office as your client, you need to pay more attention to be active, transparent, and well prepared. At the end of the day, you may become as important to your partner as on-site developers, and that may bring value for both sides.

How to be a good partner to a company when you see each other only a few times a year?

Remote work

T&M contract in IT outsourcing: How it works

The ever-evolving nature of software development can often make setting a fixed price for work impossible. Much like the IT products being developed, pricing models need to offer a high level of flexibility for if and when requirements change. This is the main reason time and materials contracts have risen in popularity in recent years. Often referred to as T&M, a time and materials contract model works out the overall cost of a project based on the time spent on the work carried out, plus any materials used.

But how does that translate in the world of IT outsourcing? In this article, we take a close look at exactly how a time and materials contract works, plus what types of projects it is best suited to.

Time & Materials contract: How does it work?

A time and materials contract is based on the number of hours a developer spends on a project (according to a pre-arranged hourly rate), plus any materials (eg software licenses) used for the duration of said work.

The key to a time and materials contract is flexibility – it can evolve alongside a project, and easily be adjusted as and when requirements change. The level of control this type of agreement offers to both clients and vendors is what makes it such an appealing option.

A highly agile-orientated workflow, time and materials contracts can be hugely beneficial, ensuring cost-efficiency, transparency, and timely delivery of the task in hand. However, this type of agreement requires a level of trust from both parties in order for it to work successfully. Vendors must be transparent when it comes to time spent on a project and regularly update clients with costs incurred, and clients must always be present to discuss requirements and approve decisions, as well as pay the agreed rate. Needless to say, picking the 

In practise, a T&M contract will include milestones of product delivery, all of which are defined and agreed by both parties. Here’s how a time and materials model works at Solidstudio:

The size of the project is initially assessed, before being broken down into small deliverables, each of which will be estimated and carried out subject to a client’s approval.

Developers, UX designer and Project Managers at Solidstudio work at fixed hourly rates of between $40-75, based on their level of expertise, skills and qualifications. Staff best suited are assigned to a project, with the hourly rate communicated to the client before any work is undertaken. Each month, a worklog and invoice according to the specific developer’s hourly rate is sent to the client.

Solidstudio works in agile iterations of two weeks, presenting progress to clients at the end of each iteration. In addition to this, the Solidstudio team also hosts recurring planning sessions with clients to track and measure performance.

Time & Materials contract: When should it be used?

While it might seem like a time and materials contract is the perfect pricing model, it’s not always the best solution. As a general rule, time and materials contracts are most suited to projects, where the scope of the project is initially hard to define or can be subjected to a change. T&M is perfect for when there is no clearly finalized product, and when there is no easy way to divide the project into smaller parts. This contract type lends itself in particular to:

Projects with undetermined or vague specifications

Start-up businesses, with no exact, predefined goal

Projects that need to quickly react to market trends

Outsourcing a development team to work side by side with the internal IT department

Whatever software development you might require, it’s always best to check all pricing options available. For more information on time and materials contracts and how they work, contact the Solidstudio team.

Pros and cons of Time & material vs fixed price contracts.

What is outsourcing?

28 APRIL 2020 • 6 MIN READ