In the world of software development, speed is the ultimate competitive advantage.
As Ricky Bobby says in the movie, Talladega Nights, “If you ain’t first, you’re last!”
Granted, Ricky Bobby was talking about NASCAR racing, but his sentiment is spot on.
If you’re not obsessed with getting your software development products to market first, you’re doomed to come in last.
But for many SMB CEOs and PE leaders, that beautiful, all-consuming obsession can lead you to some disheartening realizations, like:
- I don’t have the technical resources or developers with the proper skill sets to get this project completed on time, let alone within budget.
- I don’t have time to conduct a lengthy recruiting process to find the right people.
- If I drop the ball on this project, it might very well bury my business.
Inevitably, it’s at this point where staff augmentation companies are suggested to bridge your business from those above challenges to ultimate success. And while initially that bridge may look and feel like the Golden Gate, the reality is that it’s more like that rickety, ramshackle rope bridge from Indiana Jones and the Temple of Doom. One swift strike from Indy’s sword on the railing, and you, your team, and your software development company plunge hundreds of feet into the alligator-infested river below.
As business leaders, we’re always trying to solve problems. Some problems are clear-cut, and some are anything but. Software product R&D usually falls in the latter category. We have this itch, this urge to make progress, pull the trigger, and actually make a difference and change something for the better. I get it. But before you pull the trigger on staff augmentation, it’s a good idea to clearly frame your problem and the change you need to see to make it better.
Problem: Your software development team doesn’t have enough resources to deliver what you need, when you need it.
Solution: Add more resources… and try to get the best talent for the best rates!
Simple, right? But have you covered the assumptions you’ve already made when framing your challenge in this way? Here’s what you’re assuming:
- Your tech leads have gotten the architecture, technology choices, and development process totally nailed down and solid.
- Your team is cranking out high-quality stuff at a really good clip, just not fast enough to hit your targets with the current staffing level.
- Your team is operating as efficiently as they possibly can. They’re working smart and hard, they know where they’re going, they know how to get there, and they just need some more manpower to get the job done.
- Your team is familiar and works effectively with contractors. Your team is prepared to lead and mentor contractors. And you’re positive you won’t have the ole’ “us vs. them” noise going on.
If these assumptions are correct, pull the trigger on staff augmentation! You’re ready to go, your risks are managed, and as long as you don’t go overboard, you just might see a decent return on your investment.
But if any of these assumptions don’t hold true for you, hold off on pulling that trigger just a bit longer. Don’t worry, there’s a better way to de-risk and accelerate your software development projects. But before we get to that, let’s look at the two main ways staff augmentation is practiced in the market.
1. U.S. based provider
As the name suggests, you initiate your software development outsourcing with a U.S. based team of specialists that can be incorporated into your company’s team on a temporary basis. This is attractive because everyone lives in the same country (though not necessarily the same region), speaks the same language, understands national regulations and culture, and can be scaled up or down depending on your ongoing needs.
However, in-country staff augmentation is generally more expensive (the average rate is $100-$350 per hour) and can limit your talent pool.
2. Offshore provider
For those projects where cost is an issue — and if we’re being completely honest here, cost should always be a consideration — hiring specialists from outside the country can be very enticing. Not only do you have a much wider and deeper talent pool to use, but hourly rates are generally much less than using U.S. based talent.
On the flip side, your out-of-country team is typically working in a much different time zone, which means you’ll get the work the next day, and communication will largely be done “over the wall.” Inevitably, this increases the likelihood of mistakes and re-work if there happen to be any miscommunications — and miscommunications can happen frequently if you’re not careful.
And that’s not taking into account the language and cultural barriers that can interfere with success, even with the addition of an on-shore or near-shore engagement manager that’s so popular in hybrid on/offshore scenarios.
One of the main reasons offshore IT staff augmentation is so appealing to a software development company is because it’s supposed to offer flexibility and save time and money. But the harsh reality is those glorious time and cost savings don’t really materialize — or at least not to the levels that make them so attractive initially. I’ve heard clients crow about getting offshore talent so cheap they just don’t care if a 90-day project fails — “it costs mice nuts!” But later, when that cheap offshore team doesn’t perform, 90 days have gone by, it’ll now take you another 90 days (or another 180!) to get it right. That means you’ve got nothing to sell for another quarter (or two or three). The opportunity cost of cheap offshore development is very real. Don’t get me wrong: there is amazing software talent all over the globe, and there is nothing wrong with tapping into it. But no matter where you go, you’ve got to pay for the talent. Certainly if you’re actually trying to build software faster.
Major Challenges in Staff Augmentation
So, if not U.S. based or offshore, then what? There are two main staff augmentation challenges in the aforementioned options: mentorship and technical leadership. Remember what Ricky Bobby said about speed? Well, those two attributes are the nitrous oxide for software development that can slingshot you into first place in the race to get your product to market.. not to mention save the day when it comes to your software product R&D timeline and budget.
Mentorship matters (a lot).
Whether you plan to entrust your product to a U.S. based or offshore team, there needs to be a point person who is offering mentorship to your software developers. Unfortunately, many CEOs fail to make this a priority. An unintended consequence of this decision is the onus of resource management falls squarely upon the shoulders of — you guessed it! — the CEOs.
Hello time suck!
In fact, one of our clients recently revealed she was spending up to 50% of her time managing tasks, coaching her developers on the direction of the business, and providing training resources to build up development skill sets.
And she wasn’t a technical leader!
To no fault of her own, she was incapable of answering tech-related questions and guiding her team. She was frustrated, and rightfully so.
This is where having a mentor — someone who has traveled these roads and seen the very worst scenarios play out — can pay immense dividends. They know what it takes to scale those summits. They won’t panic when the you-know-what hits the fan.
Instead, they can provide innovative software solutions when developers get stuck, or review code, or merely offer advice when a developer’s mindset is in the wrong place.
Technical leadership gets you ahead.
The other aspect missing from staff augmentation is technical leadership. Someone must take responsibility for making the tough technical decisions, while also ensuring your software product is designed in a way that helps the business achieve its goals of generating growth and net new revenue.
There are three main ways technical leadership shows up:
1. Evaluate and drive the architecture strategy.
Every technical leader should have these questions top of mind at all times:
- What architecture will allow the company to add new features and maintain the current ones in the best way to meet customer demand?
- Is the product stable enough to be available when the customer needs it?
- Is usability intuitive or clunky?
- If there are changes in integrated solutions, does it impact the product’s availability and/or usability?
A proper technical leader will have the insight and experience to provide direction to the dev team at a moment’s notice, so the customer never (or very rarely) feels any pain.
2. Translate the business needs into technical product design.
The CEO or product owner is the one tasked with making sure the business is growing and meeting the needs of customers. But if a product development background or a technical background is lacking, this individual may not know how to translate those needs into a technical design specification.
We talk about better communication between CEOs and tech in a past blog, but a savvy technical leader is capable of doing both quickly and effectively.
3. Accountable for missed targets.
Product development or software R&D should be responsible for driving revenue. But in many cases, there isn’t someone on the team who feels the pain of those missed targets. Missed deadlines and blown budgets for software projects are common, so where does the buck stop? At the desk of the CEO, of course.
With true technical leadership, the CEO can shift that responsibility to a single person who’s accountable for making sure the work gets done and business goals are achieved.
What Can Save You
Without these very important components, staff augmentation — whether U.S. based or offshore — will struggle to deliver meaningful results. Because when push comes to shove, humans are creatures of habit. Even though our inner-self wants to change, when we feel anxiety or pressure looming, we instinctively revert back to our old habits because it’s what we know.
This is why we need focused technical leadership to keep us on track.
In our years of experience, most CEOs don’t have time to devote to keeping a dev team fully on track — nor should they! They have bigger, more pressing issues to deal with like sales, marketing, operations, new business, the list goes on.
This is why having a partner like Modularis, who can help you discover, design and develop commercial software products, is so important. We provide the technical leadership, take on all the technical headaches and challenges you hate, and help your team de-risk and accelerate product development and R&D.
Modularis also offers an unrivaled, fully supported, and royalty-free commercial development platform culminating from millions of lines of code and backed by our expertise; automated processes that reduce development effort up to 75%; and a scalable architecture that sits on-premise or in the cloud of your choice.
Want to see how we can help your team drive revenue? Download our roadmap for R&D success here.