Extended Team vs. Dedicated Team Model: Which Works Best for Your Project
Your White Label Solution Provider in Ukraine
- Understanding White Label Solutions
- White Label vs. Outstaffing: What Is the Difference?
- Popular Services WLSpecialists Provide
- Best Ways to Approach WL Services
- Why White Label Software Development Can Be Beneficial for a Business?
- 5 Features of a Trustworthy White Label Solution Provider
- Get Top-Tier White Label Solutions with Mobilunity
Nowadays, there’s a rising interest in white label solutions, given the development of businesses in the changing environment and demand for online services available in a click. However, many businesses are still hesitant to enhance their offerings with white-labeled options, not being aware of the specifics – and benefits – of such solutions.
In this article, we will discuss white label solutions in detail, what value they can bring to a company, and what makes a trustworthy white label services provider.
Understanding White Label Solutions
White labeling (WL) is a collaboration model in which one company produces a product or service for another company, then sells it under its own brand. So, the client company can save on expenses on product development and focus on their core business tasks, be it sales, marketing, or brand development.
Making its first appearance in the music industry, as noted in the Avada article. The term “white label” is widely used in IT and finance areas, among others. As a result of the COVID-19 pandemic specifics these years, the production of white label product options has risen over 75%, according to the BCMPA report. The most renowned case of WL products reselling during these times were sanitizers, as well as food products and household chemicals.
A white label solution opens up new opportunities for both large companies and startups. That said, the scope of the business doesn’t really matter, as there are many ways to integrate the WL model into any company strategy and business process.
In IT, this approach helps organizations to quickly implement additional services of high quality. The range of WL services in IT is pretty huge, including website and app development, software development, hosting services, support assistance, SEO and marketing services of the developed solutions, and more.
White Label vs. Outstaffing: What Is the Difference?
When picking between WL and outstaffing, the perks of each option may not be that transparent and evident from the first glance. Despite the popularity of both partnership models, there is a clear line when one becomes more beneficial over the other. While outstaffing can fit best if the company desires to make a unique platform or software and has a relatively strong influence over the end result, white labeling provides quick and ultimate solutions. Let’s dive into details:
| White Label | Outstaffing | |
| Ownership | The WL implies the right to sell goods and services produced by a service provider under the company’s brand. In this case, all licenses for sale belong to a buyer company. | The company hires specialists and buys the services of individual professionals or teams, not the product. Although intellectual and commercial rights usually belong to the client as per the contract, they must be specified in the contract. |
| Technical support | If a bug is found during the launch, the service provider company is responsible for fixing it. By default, the service provider supports and maintains the solution. | In case of problems with its own software, the company itself will have to involve/hire again competent experts who will be able to fix the errors. |
| Resources & Expenses | The white-label service provider is usually responsible for hiring a workforce, as well as appliances and software needed for work. The company buys the ready-to-sell product, thus, cutting on the expenses on the organizational and support processes. | Most of the expenses will be held through outstaffing service providers but will probably cost more for the company. |
| Participation | Usually, the manufacturer has full control over the production processes, and all issues related to technology and design are resolved without the buyer’s input. | The companies’ input is decided upon negotiation between a service provider and the client company. |
| Development time | Many services are often already developed by the WL company and require only incorporating additional features into the software. It helps to immensely save time on production and launch the service (or resell it) swiftly. | Most of the outstaffing services will require additional time on finding and hiring dedicated specialists, product discussions, and road mapping. It will also require more time to create the software from scratch. |
If you want to get an app or service for your brand as soon as possible, it’s possible to find a WL services provider that offers ready-to-buy solutions. If there’s an urgent need for a service without some unique requirements, for instance, white label financial services or social media marketing solutions, WL can be a perfect choice.
It’s worth mentioning that WL offers a slightly different approach from other partnership arrangements. For example, affiliate partnership implies that companies recommend your services to their clients and earn commissions. It’s also different from co-branding, where a new branding is created for the cooperation between partners. At the same time, a WL company name is never specified in the end product that belongs to the buyer company.
Popular Services WLSpecialists Provide
The white-label model has gained its popularity in many online and offline areas, such as bank cards, affiliate links, online services, and more. Using white-label solutions and not wasting time and effort diving into software development is not a new but still highly relevant approach that many companies use. This way, the range of services that a business can provide thanks to the WL model, when a supplier delivers its service without claiming the brand rights, only expands. Among the most common and in-demand services are the following:
B2B White Label
B2B WL solutions come as profitable cooperations between two businesses. One company provides services and transfers all the rights to the second company, advertising this product as its product.
B2C White Label
With such cooperation, a WL company provides services specifically for end-users. This includes services related to developing a bespoke application (CPM or internal software) for a client.
White Label SaaS
In this case, a company buys a program from a service provider and sells it under its own brand. The most common WL solutions are cloud services (SaaS) and infrastructure provisioning (IaaS).
It is important to note that with these approaches, all white-label goods and services are branded and associated with the seller, not the initial manufacturer. Since the seller does not affect the production of goods, it is necessary to choose a WL partner carefully.
Best Ways to Approach WL Services
Given the fact that your company development and reputation will be closely related to the quality of the WL solution created for you, it is crucial to approach WL smart and carefully choose the services provider:
- Product Investigation. Before opting for a service, you need to make sure that the services provider can fulfill all the functions and fully understands the needs of your business.
- Roadmap Creation. After negotiating with a client, a service provider usually creates a clear and concise roadmap to highlight and confirm the goals and interests of the parties and coordinate tasks between teams. The roadmap helps set technical constraints, define market trends and targets, and mark deadlines.
- Launching and processing. Thanks to the previous two steps, a dedicated team should be equipped with all the information needed to build the required solution. After the launch, there is still room for improvement to the service, and a service provider should assist in supporting and upgrading the provided option.
Companies often opt for white label software products when they need a website, an app, or other software specifically for their/their clients’ needs and want to save on effort and costs involved:
White Label Website Development
With the urgent need for an online presence, most businesses rush to make their own website. To keep conversion rates rising, many companies decide to buy a ready-made website, adjust it to its needs and put branding to start operating online.
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White Label App Development
Similar to website development, the companies that need to market their services through apps but have no white-label mobile app developer in-house, usually prefer hiring a white label application developer to build the needed solution. As per Smartinsight, in 2021, around 90% of the time users spend on mobile is devoted to apps. So, the rising interest in this sphere is not surprising. Besides, a standard WL agreement implies that a client/reseller buys all the rights from the white label app developer and can market and resell the solution for any price.
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White label software development
Such services usually include both software and support services that go for sale unbranded or are built specifically for the client to use/resell. It usually includes white label CRM solutions, ERP, and other SaaS products. The company that purchases a SaaS service from a WL provider usually obtains license rights to the platform.
Why White Label Software Development Can Be Beneficial for a Business?
For businesses that buy services through the WL agreement, it usually helps to save the time and effort on creating teams that will be redundant over time. What’s more, WL allows for making additional revenue through reselling obtained services.
To sum up, the benefits of using the white-label model include:
- Optimized resources. There is no need to spend money and resources on research and development in areas in which the company’s competence is low. When a company orders a high-quality solution and focuses on promoting it, this allows optimizing resources.
- Increasing revenue. By expanding your offerings with additional services and software developed through the white-label agreement, you can earn much more than you spent on the WL solution development. Moreover, custom software development rates are usually more reasonable than hiring a full team of developers for a project.
- Increased retention. Access to a new target audience, popularization of your products, and client retention all become possible, thanks to the WL options.
- Boosting your brand. Through successful WL product acquisition, you can promote your brand and establish yourself as a solid player on the market.
Worth noting, more and more companies are interested in outsourcing and outstaffing options to get white labeled software at an affordable cost, with Ukraine being known as an IT outsourcing haven. Thanks to affordable prices and a wide pool of IT talents, Ukrainian WL solution providers are well-known all over the world.
5 Features of a Trustworthy White Label Solution Provider
Before becoming partners with the WL provider, one needs to check the service provider for reliability and trustworthiness. To choose a perfect partner for a while label project, check whether the statements below characterize the selected service provider:
- Upholds standards. Ensure the WL company provides a service that meets their partners’ goals and needs alongside the support and troubleshooting after launching.
- Check actuality. Make sure the company applies cut-the-edge, innovative technologies and understands the current trends in the IT market.
- Makes transparent and unequivocal agreement. Make sure there are no hidden pitfalls or additional costs between lines in the agreement. Trustable services should be transparent and ready to answer all your questions and uncertainties.
- Test Beforehand. Agree with the service provider to test the solution before launching to make sure it corresponds to all requirements and performs with no issues.
- Intellectual and commercial rights. Make sure to check and agree on the terms that state that all intellectual and commercial rights for the software products developed by a dedicated team fully belong to you as the client.
Get Top-Tier White Label Solutions with Mobilunity
Finding a reliable white label web developer and forming a dream team for your WL project can be time-consuming and challenging. That’s why it’s always best to consult with a WL services provider that has experience in working with various companies and can help you find the best team.
Mobilunity is a Ukrainian outsourcing and outstaffing company well-known for providing top-level services and dedicated teams for over 10 years. Our clients note our experience and tailored solutions that fully meet the needs of a business. Following best industry practices combined with our own talent acquisition methodology, we at Mobilunity know how to create a perfect dedicated team for a company.
So, if you are in search of an experienced partner to build high-quality WL software, Mobilunity experts are ready to assist you with this task and deliver the best result to meet your needs and preferences.
Looking for a high-quality white label solution? Get in touch with Mobilunity experts!
Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
