Return on Innovation

NEW STUDY

Dynamic Staffing Model Reduces Failure Rates For Distributed Software Teams

Analysis of 190 Gigster projects shows 60% lower risk, 30% higher efficiency, 3.6X employee and customer satisfaction

San Francisco, June 9, 2020

A new report from Constellation Research finds that a more flexible staffing approach can reduce the failure rate of software projects from 70-plus percent to less than 10 percent, while also driving marked improvements in cost efficiency (30 percent) and project satisfaction (3.6X). The report states that distributed work could change the nature of enterprise IT and software development in the 2020s as profoundly as cloud computing did over the past two decades.

The Constellation study is based on detailed data supplied by Gigster from 190 digital projects and 1,161 sprints, conducted in 2018 and 2019 across Gigster’s client base. Highlighting a rapid evolution in the future of work, it points out that dynamic project staffing is spreading across the enterprise, with 72 percent of all such projects happening in large enterprise and IT professional services firms, up from 52 per cent just two years earlier.

The Gigster project analysis validates key benefits of distributed work and dynamic staffing, which is particularly relevant in a world where more and more tech workers are working remotely:

  • Software projects managed with flexible staffing achieved a 91 percent success rate—a sharp contrast with the historical 70-plus percent failure rate of digital transformation projects (as reported by McKinsey in 2018).
  • The digital projects studied were 30 percent more cost-efficient, due to optimized resource utilization.
  • Employee and customer satisfaction were 3.6 times higher than traditionally managed projects, due to more diverse engagements, more employee input in staffing and better alignment with customer requirements.

The report gives a practice Gigster calls “elastic staffing” credit for many of the benefits. Elastic staffing is an agile approach that uses an advanced platform to manage talent and teams across software development projects. This makes it possible to scale resources dynamically, which ensures the right skills are used at the right time. Unlike fixed staffing approaches that assign full-time roles and resources for the entire project, elastic staffing adjusts resource levels for each project milestone based on the actual workload and skill sets needed for that phase.

“This report shows that leading CIOs can adopt best practices from the gig economy to gain efficiency, reduce risk and improve job satisfaction,” said Dion Hinchcliffe, Vice President and Principal Analyst at Constellation. “Our analysis found that IT organizations can use Gigster’s platform to be 30% more efficient, reduce risk by 60% and deliver 3.6x higher project satisfaction.”

Hinchcliffe added, “Constellation also finds that when data from projects is more transparent, it results in more proactive measures to ensure on-time delivery, correct risks as soon as they emerge, and better track and reward high performers as well as weed out those who aren’t able to deliver efficiently.”

Sourcing talent remains one of the biggest challenges that IT departments face, with shortages of skilled candidates who often require expensive recruiting and lengthy onboarding processes. The study also describes how Gigster’s elastic staffing offers employers a way to get around those hurdles, offering them faster access to talent.

“With remote work exploding, IT leaders need team intelligence tools to manage productivity and risk,” said Chris Keene, CEO of Gigster. “Constellation Research has proven that Gigster enables distributed teams to achieve 30% higher productivity, 60% lower risk and 3.6x higher employee satisfaction. Constellation’s analysis validates what we’ve learned across thousands of projects: elastic staffing makes for happier employees, more productive software teams and more reliable delivery.”

For more details, download the full Constellation study here. Constellation’s Dion Hinchcliffe and Gigster’s Chris Keene will also co-host a webinar about the study June 25 at 10:00 am PT / 1:00 pm ET. Register here for the webinar.

Sourcing talent remains one of the biggest challenges that IT departments face, with shortages of skilled candidates who often require expensive recruiting and lengthy onboarding processes. The findings highlighted how distributed teams and elastic staffing offer employers a way to get around those hurdles, offering them faster access to talent as well as the ability to rapidly ramp work up and down with little penalty.

“We believe distributed teams and elastic staffing will drive the future of software development,” said Chris Keene, Gigster’s CEO. “Constellation’s analysis is significant because it validates what we’ve learned across thousands of projects: Elastic staffing makes work more interesting and productive for software teams, while making delivery more consistent and reliable for their stakeholders. Peaks and valleys are real in any project, and elastic staffing allows you to scale up or down dynamically across projects to meet those needs.”

About Constellation Research

Constellation Research is an award-winning, Silicon Valley-based research and advisory firm that helps organizations navigate the challenges of digital disruption through business models transformation and the judicious application of disruptive technologies. Unlike the legacy analyst firms, Constellation Research is disrupting how research is accessed, what topics are covered and how clients can partner with a research firm to achieve success. Over 350 clients have joined from an ecosystem of buyers, partners, solution providers, C-suite, boards of directors and vendor clients.

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