Types of development outsourcing

I know what you are thinking; isn’t it simple? Outsourcing development is a practice where the development is outsourced to another team developing the product or the feature, that is not part of the company developing said product. While true, the development outsourcing can be different in few aspects. Let’s go through some of them:

1. Local Outsourcing

There is not really too much to explain here. Simply said, you have a product or feature that you are developing and you want to have it done by specific date for example. However, you lack the manpower or the people with necessary skills to make it possible and deliver the product or feature in nick of the time. In this case, you make decision to find development team in the same city or your country, that will help you with development of your product.

2. Global Outsourcing

While finding a local team to develop your product or feature is the best case scenario, in a lot of cases that may not possible either due to no team being available for hire or the total costs for engagement exceeding the amount of your development budget. In that case, the best option is to look and find development team abroad. Popular locations that have high-quality IT developers are Poland, Romania, Serbia, Ukraine with good rates that can fit your budget. After you select the country you want to engage with, you need to find local partner company. There are lot of good companies that can provide you the developers for your specific needs (whether for example you need frontend developers, backend developers or maybe some quality assurance testing) that can outsource entire teams. In case you are looking to engage with team from Serbia, you can contact us, and we will discuss about what you need and how it can be done. In case that you need something more specific or larger team for example, we will forward you to one of the companies we have partnership with that can help you with your project needs.

3. Opening Representative Office – Subsidiary

While this is not development outsourcing per se, in one way it could be something close to, if for example, you place R&D in one specific country, while your headquarters are in another country and so on. However, in most of the cases, subsidiaries are a starting point for tech companies to attract talent from the region to work directly for them, without need to have intermediator company. In some cases it can actually cheaper to open subsidiary, but that always depends on per cases basis and things such as; location, economy, company size, revenue, and other factors that play key role when deciding whether to go with outsourcing or subsidiary. If you decide to open office in Serbia, we can help you with everything, from finding appropriate place for your office, and making sure that you have all the things set up that you need in order to start working.