The Pros and Cons of Managed Software Development Services

If you struggle to find the time to focus on the core process of your business, your business may need managed software development services. Your business may also require managed services if you have little or no knowledge about software development or you have a tight budget when it comes to developing new software projects.

An Introduction to the Managed Software Development Model

Managed services involve outsourcing a particular job or responsibility, or a stage in a project, with the aim of reducing expenses and improving the operations. With these services, such as a managed software development team or technical staff augmentation, you’re hiring workers from outside your company or even your country to get access to higher-skilled and more affordable workers, including backend developers for hire.

When looking at a managed software development team, it typically consists of remote workers and a project manager to oversee their work while you focus on other important duties. It’s different from other hiring models as you have access to a larger talent pool more experienced workers and are not always directly involved in managing the workers.

A managed software services vendor will deliver the offshore or nearshore managed services and assist you with putting your ideal software development team together. 

This model is fast becoming incredibly popular with the market for managed services expected to raise $356.24 billion by 2025 according to Statista. 

Engaging a Managed Team

It’s quite straightforward to hire managed developers, as long as you are working with a reliable and trusted vendor. Here are the steps you need to follow when engaging a managed team:

• Choose a vendor

The first thing you need to do is to select a suitable vendor to work with. There are many offshore managed services providers with software development teams on standby, so it’s important to choose one with a good reputation. Also consider the costs, scalability and in-house capacity.

• Communication with the vendor

This step is crucial, because a lack of effective communication can leave you with issues early on in the process. Clearly explain your project, your specific needs and the kind of employees you’re looking for to the vendor so that they fully understand your requirements and source the right candidates for you. Transparency is key. 

• Team setup

During this step, it is essential to consider the size and type of your project. This will give you an idea of the candidates you require. Employees that typically form part of a software development team include a project manager, a front-end developer, a back-end developer, a UI designer, a UX designer, and a tester. 

• Onboarding

It is important to hire a development team that feel part of your business. This involves sharing knowledge on the goals, aim, and nature of the project. You will also help them feel part of the business by sharing your mission, vision, culture, and employee expectations. 

• Managed development

Managed service providers will set up a system to carry out managed development for you. This includes the skills and knowledge needed to oversee the managed software engineers team. It will usually depend on the amount of support you require. 

• Additional support

There may be certain other tasks you need help with or if you are new to managed services, you may require extra support. You can communicate this to your vendor who will ensure you get the needed assistance. 

About Managed Service Providers (MSPs)

A managed service provider or MSP is known as a company that manages certain tasks on your business’ behalf under a subscription model or on a regular basis. 

Businesses typically choose to work with an MSP because of the following reasons: 

• They have time for a particular part of a project.
• They don’t have the expertise needed for a specific project, such as software development.
• Local services are expensive.
• They cannot directly manage a remote team.
• Their existing software or engineering resources are not sufficient. 

Before hiring a managed IT services provider, it is important to note that there are some challenges you or your IT department may face regardless of how prepared you are. These challenges include:

• Cultural differences.
• Addressing downtimes.
• Security issues.
• Unaligned objectives.
• Lack of flexibility.

Managed Software Development Pros and Cons

There are several advantages to making use of managed software development. However, there are also some pitfalls to be aware of. To help you make an informed decision, we explore all the pros and cons: 

The Pros of Managed Software Development 

• Cost-effectiveness

Making use of managed software development services will save you costs, as most vendors have fixed rates for the entire hiring process. And most vendors won’t ask for additional costs along the way too.

• Business efficiency

Managed software development services usually take care of the entire technical aspects while the business manager or owner can focus on everything else. The company won’t have to worry about the software development aspect, leading to a better division of labor and efficiency.

• Round-the-clock technical support

Managed software development services usually come with round-the-clock technical support. So, whenever the company needs help during a downtime or security threat, there is always someone on standby.

The Cons of Managed Software Development

• Software compatibility

Some managed services will require you to use particular or proprietary software, leading to problems incompatibility and unforeseen costs.

• Communication issues 

When outsourcing your managed development team, it can often lead to communication problems. Some employees may not be proficient in English, while it can also be challenging to communicate information via some online platforms. 

Dedicated Software Development as an Alternative to Managed Software Development

When outsourcing for your software development project, you can choose between managed software development or a dedicated software development team. In the table below, we look at the differences between these two models and why dedicated managed development teams are the better option:

Mobilunity as a Dedicated Software Development Team Provider

Mobilunity is a Ukrainian-based dedicated software development team provider. Ukraine has some of the best, most skilled software developers. Combined with our experience in the field of outsourcing, Mobilunity is one of the preferred vendors for dedicated software development. Hire fintech software developer at Mobilunity to make a great investment in your future project. We may also find developers with additional skills, for example, if you are looking for Requirements Engineer, Rust development or Scala development services.

We have a talent pool of 200,000+ Ukrainian software experts and serve clients, big and small, around the world. Our clients include esurance from Switzerland, FinExpert from Canada, Zenchef from France and Byrd from Denmark. 

Our process is simple. We follow the following steps to find the perfect team and offshore managed services for you: 

• We discuss your needs and what type of managed software developers or team you require. 
• We launch a campaign to source strong potential candidates.
• Our team shortlist candidates CVs. 
• We interview potential candidates and thoroughly vet each one.
• Our team assists you to schedule interviews with the candidates.
• We assist with the onboarding process. 
• We help with staff retention and ongoing support.

If you require dedicated development teams for your business’ project, contact Mobilunity. Get the professional help your business deserves today! 

Written by:

Anastasia Stefanuk

Market Researcher