DECEMBER 29, 2022
7 min read
When you start a fintech development company, there are some prevailing ways to run a business, depending on your goals and objectives.
A business may be grown by hiring IT experts in-house or by partnering with a fintech software development company to do all the tech jobs for you. In addition, the consulting model can give your company a wide range of creative abilities in the field of fintech.
In-house vs Outstaff Fintech Software Development
When discussing outstaffing, it is hard to avoid addressing how it differs from outsourcing. Many people mix them up by accident. In reality, there are two distinct types of collaboration. What unites them is that they both advocate for the use of distant and less expensive labor.
Investing in IT workers at a fintech product development company’s base may be more cost-effective than outsourcing this division. Still, software development is kept in-house less commonly than accounting and payroll. Organizations often employ outsourced IT services to save resources and streamline processes.
Outstaffing may save money and time for personnel who do not need to be in constant touch with all aspects of operating a company. Finally, an outsourced consulting model gives your business a wide range of creative abilities in software development fintech.
4 Prevalent Business Strategies When Developing a Fintech Asset
There are four widespread business models for employing the IT development team: in-house, outstaff, outsourcing, and consulting.
|The scope of the work||The whole project is dedicated to a single team||Different teams may work on different parts of the project||Different teams may work on different parts of the project||The whole project is dedicated to a single team|
|Costs for hiring and educating the team members||On the business||On the provider||On the provider||On the provider|
|Quality||Depends on the recruitment process||Depends on both: the company’s own recruitment process and the provider||Depends on the provider||Depends on the provider|
|Team accessibility||Due to the work schedule||Depends on the agreements||Usually 24/7||Usually 24/7|
|Security||All data left inside||Sometimes NDA is needed||Sometimes NDA is needed||Sometimes NDA is needed|
Let’s review the key differences. In this article, we’d like to focus on two of them: in-house and outstaff. They look similar but differ a lot.
Advantages of Outstaffing Fintech Software Development Services
The use of an outstaffing service has several benefits over recruiting employees directly. It allows businesses to hire people from all over the world without staying in one place.
There are several advantages to working with a fintech outstaffing company.
Greater control over the project
In this case, you can be sure that your understaffed team will give it their all on your project. Outstaffing lets you avoid communication problems and delays that might happen when third parties are involved. You can always talk to your team about new features, changes, and improvements.
Focusing on just one project allows fintech developers to spend more time getting to know the project’s inner workings and making it work to its fullest potential.
Consequently, you can expect your remote employees to add value to your business, even if they don’t work on the software itself.
Great price-quality ratio
Outstaffing from other countries is cheaper for wages and maintenance costs. The other thing to note is that foreign software developers have skills and expertise that many businesses don’t have at home. Combining these two criteria results in a win-win situation.
Flexibility in team scaling
Outstaffing lets you change the size of your workforce as needed. Unlike other models, you can easily add more engineers or cut the team down to one person. If you use outstaffing, it is possible to make team decisions or strategies that are better for the business.
You choose developers to work with on your own
Unlike traditional outsourcing, where people are brought to you no matter how culturally compatible they are with you. If you choose your team members carefully, you will be able to learn more about their skills, expertise, personalities, and views. This is very important for team growth.
Advantages of In-house Fintech Software Development Services
When you hire a professional team or staff member who knows how your IT architecture works, there are a few advantages.
Well-versed in the industry
In-house IT staff know how your employees use their devices and how your network works. If your business is doing well, it will be motivated to develop solutions that work for everyone.
Fast to reply
When there is a crisis or a problem, speed is very important. An in-house IT team can solve problems quickly.
A simple letter or phone call could start solving the problem right away.
When you work with IT, you have more control over how quickly things get done and how well they work. You can ensure that your employees are as well-trained in fintech solutions as you want while also keeping costs down.
How to choose the right fintech development model
After learning about the basics of fintech software outsourcing, let’s walk through the process of selecting the best IT services partner.
1. Create a plan for the development of financial software
Hiring a credible fintech development outsourcing firm can aid in product planning and market analysis. You must have a strategy for a financial product.
It will simplify the process for your partner to fulfill your needs for a financial technology solution. As a result, your remote team will assist you in creating a clear product development plan, creating the proper business and customer requirements, and selecting the optimal tech stack.
2. Discover where to hire fintech app developers
There are various ways to identify how and where to outsource a fintech project once you’ve selected the hiring choice that best meets your project’s demands and skills.
You might start by Googling the firm or following the advice of your business contacts. In any case, we’d like to provide a list of unique services where you may select your remote workforce.
3. Examine portfolios that demonstrate fintech expertise
Choosing a development team with extensive fintech outsourcing experience is another way to ensure that they can build a fintech product of high quality. Reviewing its prior projects, you can confirm the company’s successful track record and innate skills to create quality products.
A team of professionals should understand all aspects of the software creation process, be proficient in all essential technologies, and be ready to confront problems and fulfill deadlines.
4. Check that your outsourced partner adheres to security requirements and financial legislation
Compliance with privacy and fintech legislation is a significant prerequisite for fintech app development outsourcing. The offshore team of professionals must be familiar with the laws governing the creation of fintech applications in your area and should secure clients’ sensitive data.
5. Interview process
Before making a final pick from a pool of eligible applicants, there are various factors to consider.
- Examine the team’s technical abilities, development procedures, quality standards, and qualifications.
- Examine the maturity of project management and openness to observe how the team makes choices, overcomes obstacles, and solves issues.
- Interview applicants to find out if they have sufficient financial industry experience.
6. Streamline efficient collaboration
Spend time reviewing the team’s management and communication tools, how project outcomes will be provided, and the way the company will ensure the app’s quality prior to its final release. Setting company communication principles first helps ensure openness throughout the development cycle.
7. Sign an NDA
A non-disclosure agreement is an important step in the smooth and dependable creation of financial services. An NDA’s objective is to secure your intellectual property rights while also documenting the legal concerns of new products.
Fintech software outstaffing with DashDevs
The DashDevs team created a mobile SDK for one of the top banks in Bahrain as an outstaff project. Generally, DashDevs’ teams built an account aggregation that would give customers a complete overview of their money in NBB mobile apps. Customers can get data from all of their accounts, credit cards, loans, and mortgages at all retail banks through an open banking platform developed by Tarabut Gateway.
First, the outstaff Java and DevOps teams developed an open banking platform for the Tarabut Gateway, which would have been an intermediary between banks and other businesses.
In addition, the DashDevs’ iOS and Android teams developed mobile applications in order to implement the personal finance management services into the bigger NBB app.
We can also provide outsourced consulting. This is a preferable alternative if you need more committed collaboration. Additionally, under this approach, you will engage an external contractor to help you establish a team. You’ll talk to your provider a lot, talk about your projects and how they’re going, and build a close-knit team.
What Is an In-House?
In-house is a business model in which all activities are carried out within a company using its own resources and time.
What is an Outstaff?
Outstaffing is a way of engaging people where one company hires them, but then gives them to another company “on loan”. It can be used in all parts of the economy, from manufacturing to trading. Outstaffing is often called “staff augmentation”.