To stay competitive in the modern economy, companies are tasked with finding truly global solutions. From marketing, to sales, production and distribution, everything must now be multi-functional on a worldwide stage. The same is also increasingly true when companies are tasked with creating new software solutions. Today many companies seek a global delivery model to meet their custom software development needs.
Identifying the global delivery model and motivations
In the custom software development space, a global delivery model is a solution that uses cross-functional teams of personnel spread across multiple locations, typically taking advantage of software development talent in technology centers such as Eastern Europe or Asia. This team is then capable of providing the customer the best talent, streamlined methodologies and high-end procedures all at a more affordable cost. It is a result that maximizes the return while minimizing the time and cost to deliver it.
“Access to talent is the biggest constraint knowledge-based companies have in realizing their goals. Successful companies will be those that can build cohesive, high-performing teams that leverage great people no matter where they are located in the world,” says Robert Duff, COO, Coherent Solutions.
As the demand for custom software solutions has grown, many companies have realized there simply are not enough talented software developers locally that are capable of creating the technology solutions they need. The global delivery model alleviates this concern by putting companies in touch with highly skilled software development teams around the world to deliver a quality solution.
Motivations for the rise in global delivery
The rise of global delivery models is spurred by the economy’s increased demand for technology solutions and the corresponding demand on the labor needed to build these solutions. As companies continuously strive to gain a competitive advantage and differentiate themselves, many are realizing the most effective way to do this is through a custom software solution that can fully leverage their intellectual property or unique operating capabilities. Off-the-shelf software solutions simply aren’t good enough any longer, particularly when looking at essential customer-facing applications. Customers demand one-of-a-kind experiences that only a custom solution can deliver.
Mobile and cloud technology, in particular, have expanded the realm of possibilities dramatically and have raised customer expectations of what a software solution should deliver.
Is the global delivery model the right choice for your need?
While custom software solutions created via a global delivery model offer companies competitive advantages, global teams are not necessarily the right choice for every business need.
The size of the project, for example, can help a company determine whether it should invest in the overhead of using a global team. While medium-sized and large projects are ideally suited to such a plan, small projects may not be worth developing under such a model, as overhead costs will make the result cost-prohibitive.
Similarly, to make the most of a global delivery model, the desired solution needs to be relatively well defined before proceeding too far into the development process. With members of the team all over the world, the global delivery model does not support as much dynamism as can be supported when the team is co-located.
Whether your project is starting its discovery phase or a plan has already been formulated, the right global delivery model allows you to utilize top talent, reduce costs and gain the all-important competitive advantage necessary in the modern marketplace.
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Igor has been an entrepreneur, technical architect, business strategist, and project manager in the information technology industry since 1988. As a teenager, Igor started and sold his first company in his native Belarus. As the founder of Coherent Solutions, Igor is responsible for its strategic management. Igor holds an MBA from the University of Minnesota’s Carlson School of Management and an MS in Electrical Engineering from the Minsk Institute of Radio Technology.