International human resources in software development – which is better, captive or outsourcing?
Businesses deliver globally, and digital is the new-gen universal language. In sync, the workforce becomes increasingly dispersed. The horizons opened up. Now it’s just a matter of supply meeting the demand, in international software human resources.
An idea becomes a viable product or prototype in one place. The resulting product manufactures in several points around the world. Thus, producing closer to the customers decreases delivery costs.
Software engineering is free from geographical constraints. A solid digital infrastructure and local talents enable great achievements to come from any corner of the planet.
The businesses follow skills and cost savings. Browsing the local resources turned into browsing the globe. New business models are in practice. Each company just needs to find the perfect fit for its own operations.
The modern business models
Workforce engagement models take two classical forms. A company can decide to “organize the remote delivery of software development services”. Thus, it may choose the captive subsidiary option. This better suits large companies and conglomerates. Allotting core functions and critical activities to new subsidiaries is a common practice.
The other model is third-party outsourcing. Suited mostly to projects having clear requirements and deliverables, outsourcing is extremely popular. Maintenance and support can also benefit from outsourcing. In this case, we are talking about a type of dedicated development center.
IBM features a detailed article on the right choice between captive and outsourcing. Their presentation is backed by figures and studies. You may take a look here and get inspired on what your next step should be, BP-wise.