It used to be that when a company needed new software and tools, they would get their internal IT team to dedicate time, money, and effort to the project. But as Amalga Group CEO Jens Erik Gould explains, while that was one of the only viable ways to get the job done, it wasn’t always the most efficient or effective use of resources.
Even 20 years ago, common alternatives were picking an off-the-shelf solution from a large software provider or outsourcing that work to a small local company or far-away overseas company.
“A lot has changed in recent years. New outsourcing talent models have reshaped the future of IT and software engineering,” says Jens Erik Gould. “Businesses can now realize immense benefits by nearshoring outsourcing services to companies with high-end IT talent in Latin America.”
Below are some of the leading outsourcing talent models that are reshaping the future of IT and software engineering.
Staff Augmentation
Staff augmentation isn’t a full-on outsourcing of services. Rather, it’s a hybrid model that involves supplementing your in-house IT department with external IT specialists on a temporary basis.
This model is ideal if your IT team has expertise in one area but lacks it in a related area, or if you want to expand your existing team at a lower cost.
“Let’s say your IT team has created a great new app for Android mobile devices but isn’t familiar with how to create a version for Apple devices,” says Jens Erik Gould. “You could leverage staff augmentation at a nearshore outsourcing company to hire experts who are familiar with iOS app development. And just like that, your problem is solved.”
This saves the company from going through the arduous process of recruiting, interviewing, hiring, and onboarding, which cuts down on the amount of time it takes to bring the new app live.
Managed Team
According to Jens Erik Gould, another option is to take a specific IT project completely outside the realm of your company. In the managed team model, you hire a nearshore outsourcing company’s team to handle the entire scope of work for a specific project.
The nearshore team wouldn’t work directly with your company’s IT team members. Instead, they would likely report directly to your CTO, project manager, or another leader.
This model proves useful if your company’s IT team doesn’t possess a specific skill set or if a new project you’ve taken on is outside the realm of what you normally do.
“Instead of investing the necessary resources to ‘up-skill’ your employees with talents they may never need or use again, you can utilize nearshore outsourcing,” says Jens Erik Gould.
Project Based
A final transformative outsourcing method is what’s known as the “project-based” model. In this model, your company completely turns over all aspects of an IT or software development project to a nearshore outsourcing company.
This nearshore company then handles every stage of development—all the way from the planning phase to the final release of the product. According to Jens Erik Gould, this model is perhaps the most common one used in the software development sector today.
Why? Because it doesn’t require your company to have any IT talent at all. You simply tell the nearshore company what you want and how you want it, and their job is to meet your expectations.
“All these outsourcing talent models are completely changing how companies are approaching IT and software development—for the better,” says Jens Erik Gould.
About Jens Erik Gould
Jens Erik Gould is the Founder & CEO of Amalga Group, a Texas-based nearshore outsourcing company specializing in providing highly qualified talent in IT, software engineering, and contact centers. Previously, Gould spent over a decade reporting on topics such as business, politics, and energy in the United States and Latin America for esteemed media outlets like Bloomberg News, The New York Times, and TIME Magazine.
