Working with a software house can take several forms, and the choice between them affects the cost, the pace and the split of responsibility in a project. It usually comes down to three models: body leasing, project outsourcing and a managed team. They differ mainly in who manages the work and who is responsible for the final result.
Three models, three levels of responsibility
- Body leasing: specialists join the client team, and management of their work stays with the client.
- Project outsourcing: the provider takes full responsibility for delivery, from analysis to deployment.
- Managed team: a dedicated team run by the provider, where the client sets the goals and the provider is responsible for organisation and quality.
Body leasing: filling competency gaps
Body leasing works well when the client team has its own project manager but lacks specific competencies for the duration of the work. A selected specialist, for example a frontend developer or a QA tester, joins the team for a defined period, usually from three to twelve months. Management of tasks and priorities stays with the client. The scope is described on the IT body leasing page.
Project outsourcing: responsibility for the result on the provider side
In the IT project outsourcing model, the provider runs delivery from analysis, through architecture and development, to deployment and further growth. The client defines the business goals, while technology selection, team management and responsibility for the result stay with the provider. The model suits organisations that want to focus on their core business, without building an in house technical team.
Managed team: a dedicated team with technical leadership
A managed team combines the flexibility of outsourcing with the stability of a permanent team. The group of specialists is run together with technical leadership on the provider side, while the client sets the goals and priorities. The model suits digital products that require continuous development and maintenance, without building an internal IT department.
Which model to choose
Four questions make the decision easier:
- Can the client team manage additional people? If so, body leasing is sufficient.
- Is the scope clearly defined and is responsibility for the result expected? Then outsourcing works well.
- Does the product require continuous development without an in house IT department? That points to a managed team.
- How long will the cooperation last and how variable is the scope of work?
„Choosing a cooperation model comes down to two questions: who manages the team and who is responsible for delivering the result. Body leasing leaves both with the client, outsourcing moves both to the provider, and a managed team separates them, because the client sets the goals and the provider takes responsibility for delivery."
Jakub Bielawski, CEO Devhound
Summary
All three models are described in the cooperation section. The model is agreed during a consultation, after reviewing the scope of the project and the capacity of the client team.
