Is Your Outsourcing Partner - A Body Shop?

Successful Outsourcing

Outsourcing Software Development• Are you working with a Body Shop? Or a Full-Service provider?• Body Shop: Uses contractors to fill resourcing requirements for their

clients.• Also known as temporary staffing and other similar terms• Not an inherently bad practice – many, if not most, full-service providers started

by offering contract resources. Fills an important need for many clients. • Full-Service: Resources on staff with training, methodologies,

practices and infrastructure behind them in the organization• Higher overhead, higher rates but with more robust service offerings tuned to

longer, more strategic engagements• For clients – the important issue is to understand provider’s

business model • Without investigation, it is easy to make assumptions

Full-Service Providers• Full-service software development outsourcing providers generally offer:

• In-house staff – trained, trained, supported & backed by their organization with infrastructure, formal methodologies, processes, and benefits that promote success and staff longevity

• Organizational expertise in selected technologies, verticals, project planning & initiation, risk management, automated testing, etc.

• Ability to shift quickly to fill a team role if a resource is not available to finish a project• Technologies, methodologies, processes are similar across projects. Replacements from staff can

come up to speed quickly• Established infrastructure (virtual & physical) includes workstations, secure

environment, managed IT, project level resources. Setting up a new project and maintaining environment is quick and industry standard.

Body Shops• Temporary staffing providers generally offer

• Relatively quick access to individual resources or small teams from contractors

• Experienced resources with checked resumes, skills, rates, and availability to fit the requirements

• Relatively low cost on an hourly basis for short term, well defined engagements

• May offer some level of infrastructure, usually virtual• But generally do not provide

• Project planning, initiation or team management during project• Clients are assumed to be responsible for managing team and

providing whatever is needed to assure project success

When Things Go Wrong• Assuming a vendor’s

business model, without actually investigating, can lead to surprises that waste time, money and cause unnecessary risks

• Most sales are opportunistic – more or less. • A full service vendor bidding on short term

assignments for a few personnel may bid a much higher rate or total cost. They may include resources, additional services you expected to cover but their robust, complete levels of service have a cost

• A body shop bidding for a longer assignment will be less expensive on an hourly basis, but you will be expected to take responsibility for everything needed for project success and the team may have to be trained or introduced to methodologies, technologies, and production expectations. Total cost of engagement may be higher across the whole project

When Things Go Wrong• Some body shops may provide resumes under their letterhead

with experience shifted to their name rather than the actual contractor. They may want to present the team as a standing unit, when in fact they have never met each other before the project starts. • Full service providers bidding for short term, spot work may

provide junior resources or ”bench staff” that cannot be made available for more than a few hours a day or for a few days• Vendors aren’t inherently dishonest, they are just trying to get

the most from their resources and the opportunities they bid on • As the client, you need to be sure you are asking the right

questions so you understand what you are being offered

Right Vendor for the Need• As a best practice

• Investigate your vendors as a partner for the long term (even if you don’t think you need to). Have conversations, relationships, dialogue so you have confidence you understand their business model and offerings• Requires time & attention through0ut

the relationship on both sides. The vendor should be just as interested in assuring good communications and understanding as you are.

• Establishing a partner-level relationship has benefits for both sides

Best Cases• Your body shop partner might provide

• Spot resources to fill short term needs on your teams• Low cost resources that you plan to manage in-house with whatever they

need to be successful• Replacements for lost staff while you search for permanent replacements

• Your full service development shop partner might provide• Small to large experienced teams that can integrate but remain primarily

self-sufficient part of your operations and can be responsible for strategic projects without straining your staff

• Agile project teams able to use the methodology effectively and develop based on less defined but critical apps collaboratively with your staff

• Dedicated teams working as part of your larger DevOps system for continuous app development in enterprise or client-facing applications

BestPractice

s

Know Your Vendor & Your Real Need• Understand your vendor’s services, how, when they fit• Use the right vendor for the need• Don’t bend vendors into situations that may be bad for them

and your project. A low cost vendor may not be cheaper over longer, larger projects. A full service vendor may not be able to provide the right fit for a spot engagement and may be higher cost than necessary. Pitting the two against each other will never result in comparable bids. • Partner level relationships take time to establish, but they

can be very valuable in the long run – for small or large operationsScio is a full-service, nearshore provider for software development outsourcing in North

America. We seek partner-level relationships to provide the right services for their projects. If you are unsure if our services match your needs – contact us to discuss your project. We would be happy to work with you.