How Software Development Outsourcing Benefits from the Human Cloud

July 29, 2024
How Software Development Outsourcing Benefits from the Human Cloud

The benefits of outsourcing software development have grown to much more than simple cost savings. Software developers who learn to leverage the human cloud gain access to a global talent pool, faster time to market, and greater flexibility and scalability.

The human cloud is a network of workers who offer their services through freelancing, contracting, consulting, and even part-time and full-time work. The human cloud is a growing trend as more and more businesses look to software development outsourcing to save on costs and increase efficiency. How exactly do software developers adopt and leverage the future of work and the human cloud?

What is Contingent Hiring?

What is contingent hiring and how does outsourcing software development to contingent workers help save more than just costs or capital? Defined as short-term experienced workers that can be from anywhere and can fulfill work only on a certain time frame, contingent (or elastic) workers can also save companies other valuable resources such as time and energy, while improving team agility, and getting new insights and ideas into your projects.

We know that there are a lot of benefits to the human cloud and contingent hiring, but there are a lot of challenges in getting started. Enterprises find it hard on the procurement side to factor in a fractional workforce, and how to manage on-demand individuals working remotely.

Logistics of Leveraging the Human Cloud for Software Development Outsourcing

Here is a practical outline of what software developers need to do to make use of the human cloud, and the actionable steps in preparing an organization for the benefits of software development outsourcing.

1. Major Shift in How We Think About Work

To fully leverage the human cloud, companies need to change the way they think about elastic workers, which are different from a traditional workforce. 

With traditional workers, an organization will put together a team to spend the next six months developing a new piece of software. However, there’s almost always members of the team waiting for someone else to finish their work before that team member can do theirs.

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With contingent workers, companies can bring in talent on an as needed basis - even in the middle of a project. This means that you’re achieving a 100% utilization rate on every team member and only paying for the resources you need.

For this to work, companies need to establish clear communication channels, set expectations, and utilize collaboration tools to ensure effective coordination and seamless workflow. Utilizing project management tools and platforms specifically designed for distributed teams can help streamline operations and improve overall efficiency.

2. Asynchronous Work and Managing Distributed Systems

Asynchronous work allows teams to work on their schedules and in their time zones, enabling work to progress continuously. Software developers can adopt this system to leverage the human cloud more effectively. An asynchronous approach provides flexibility and improves productivity as workers can focus on their tasks without interruptions. 

Instead of setting up a daily or weekly meeting that is time-consuming and inconvenient for every team member, outsourced software development teams must be able to coordinate by writing down specific action points and targets and posting them on their communication and collaboration channels. This makes it easier for the employees working asynchronously to get up to speed and seamlessly connect their work from the previous stage to the next.

Contrary to common belief, establishing space between team members and having less frequent communication will not slow down a project. It will help leaders and elastic workers work and communicate clearly and effectively – which ultimately results in faster turnover and higher-quality projects.

3. AI-Powered Team Management

Companies leveraging software development outsourcing and the human cloud need to embrace technology that supports remote work. AI-powered project management tools can facilitate contingent work by automating tasks, predicting delays, and ensuring smooth project execution. These technologies enable companies to harness the full potential of the human cloud while maintaining operational efficiency.

AI allows engineering teams to make more data-driven decisions and timely interventions to keep teams and projects on track. METRX is an AI-powered engineering dashboard that helps software development teams analyze bottlenecks, sync engineering efforts, and create new performance protocols. The METRX algorithms measure code contributions such as code volume, frequency, technology, rank, and consistency for a more thorough understanding of your engineering teams.

Gigster conducted a study with Stanford University and found that algorithmic ranking systems are beneficial for building trust, engagement, and transparency in human cloud platforms. Algorithmic ranking systems help match the right talent with the right projects, ensuring optimal resource allocation and project outcomes.

Both algorithmic ranking systems and AI-powered tools are used by Gigster. The software development outsourcing company stands as a testament to why these technologies can help businesses harness the full potential of the human cloud.

Software Development Outsourcing and the Human Cloud

While leveraging the human cloud and software development outsourcing can bring numerous benefits to companies, it's important to recognize that it may require significant organizational changes, the adoption of innovative systems, and technological advancements.

Companies that aren’t equipped for this transformation should consider partnering with a platform like Gigster for a managed delivery model that is more familiar to traditional enterprises. Gigster offers turnkey capability through channels and avenues companies are already accustomed to leveraging, making the transition to the human cloud smoother and more efficient.

The human cloud presents a world of opportunities for companies looking to tap into a global talent pool, save costs, and enhance their workforce's flexibility, efficiency, and agility. By engaging with software development platforms like Gigster, companies gain the benefits of the future of work without requiring a massive change or investment.

Resources:

1.Lix, K. and Valentine, M. (2020). When a Bot Scores your Karma: Algorithmic Ranking Systems as Uncertainty Reducers in Platform Gig Work. [online] Available at: https://mvalentine.github.io/pdfs/karma.pdf.

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