Developing a value-based ecosystem that will enhance your business performance and profitability by allowing your company to focus on its core competency.
On a macroeconomic level, capitalism saw different countries develop “competitive advantages,” by specializing in providing specific goods or services and trading with other countries in exchange for trade in other goods and services. Using an extension of the same logic, many companies are now realizing it can be profitable to use an ecosystem business models by joining forces with other companies to provide value instead of trying to do everything independently. This is particularly true of technology and software companies.
If you’re looking for the most efficient way to carry out a digital transformation or software development project, then creating a value-based ecosystem by outsourcing software engineering could be the right strategy. Let’s look at how value-based ecosystems work and the benefits of outsourcing your development needs.
How to Create a Value-Based Ecosystem by Outsourcing Software Engineering.
The growth of value-based ecosystems
An ecosystem business model involves two or more companies coming together to create something either may have been unable to do independently, either due economical or operational reasons. This approach allows them to create products or services together and offer more value to their customers. For instance, a bank could collaborate with another company to create a credit scoring or budgeting app for its customers.
This allows more established firms with old legacy systems to compete with the offerings of innovative new startups to remain competitive and relevant, and also facilitates collaborations across different industries that may not have been possible otherwise.
Nowadays, this is easier than ever to pull off effectively thanks to the cloud economy and digital platforms. Teams can seamlessly connect to collaborate on projects without having to worry if their changes will sync properly or override those of someone else — even if they’re located on opposite sides of the globe.
Effective value-based ecosystems should have the following:
- Regular reviews involving senior management
- A dedicated budget
- A way to be measured against KPIs
- Experts overseeing partnerships
Benefits of outsourcing software engineering
Software development lends itself particularly well to this mode of working since it can easily be carried out using remote cooperation. In case you’re still on the fence, let’s look at a few of the most important benefits.
If you have a complex software or digital transformation project to carry out, handling everything internally will typically mean one of two things: You have to train your existing team to be able to do something new, or you need to onboard an entirely new team to handle it.
Both of these choices are resource-intensive processes that can slow you down and cost you more money than necessary. By outsourcing your software engineering, you’ll cut down your resource use and ensure your product is ready faster, which benefits your clients.
Focus on your greatest strengths
Your team might be superstars, but it’s impossible for them to excel in every programming language and application under the sun. Everyone has their specialisms, and in most cases it’s more efficient and value-boosting for people to double-down on their existing strengths rather than trying to learn everything. Especially when you consider the learning curve involved in understanding a new technology.
Outsourcing makes this possible — if a project requires a specific skill set, you can simply look for a new development team that can handle that while everyone in your organization focuses on what they’re already good at and doing well.
For instance, you could delegate the support side of your operations elsewhere while your core team is more focused on development. On a similar note, you could outsource engineers that are focused on a different technology, programming language, or even industry. This way, the possibilities are endless.
Outsourcing software engineering helps to keep your operations agile since it doesn’t require as much upfront commitment as handling everything internally.
Since no training or onboarding is necessary, you can see the direction something is going in more quickly and use that to make decisions about how to proceed. Will you continue, switch tactics, or even quit and cut your losses?
Having this option will again help you to be more efficient and to focus on creating value.
Time to drive up your value
Value-based ecosystems offer an exciting opportunity for companies to offer more value to their customers and carry out a wider range of projects. This is especially true of anything that involves development — instead of training your staff in a brand-new technology stack or hiring a special department, you can outsource crucial tasks to an external team.
Need a partner for an upcoming digital transformation project? At Smartlogiq Limited, we offer near-shore and off-shore software engineering services to deliver digital software solutions, with a focus on growth, sustainability, and Rapid Business Application Development. Contact us today to find out more.