The outsourcing process is hiring resources for your company, which can be either locally or internationally, handling any business activities. The most common outsourced functions are web development, hosting, database management, infrastructure, etc.
The outsourcing partner can be located anywhere in the world, near your office or another continent.
Businesses nowadays usually have a good grip of exisitng technologies and development practices but when it comes to Web 3.0 they are completely lost. However, emerging technolgies such as Web3 cannot be ignored and it is best to leverage their potential for your company as early as possible.
We understand that adopting a completely new technology such as Web3 might seem difficult. So, it might be beneficial for you to not take up the whole process yourself and try outsourcing.
Let’s look at some new Web3 emerging technologies that can be outsourced and how you can do it:
Top Emerging Technologies That Can Improve Your Business
There are some of the top emerging rechnologies in the Web3 space that can help improve your business manifold.
Artificial Intelligence
Artificial Intelligence (AI) was coined a long time ago in the 1950s, but nowadays, it is becoming more relevant with the introduction of increased data volumes, computing improvements, and changing consumer needs. AI automates the learning and discovery process and adds intelligence in data. You might have already seen this happen recently, with technologies like ChatGPT and Bard already poised to disrupt the internet.
Companies can make use of new tools and technologies to implement AI that creates better customer experiences. They can use it to improve productivity and even marketing.
Automation is the key trend of outsourcing that can bring changes in the future. Most of the investments will flow to RPA and AI.
Augmented Reality
Augmented Reality(AR) technologies render a computer image in the real world when it comes to our consumer end products providing such experiences can increase traction. Think about a fashion shopping site that can try out your favorite styles in real-time without going to offline shops!
The AR Technology market has over 10 billion dollar valuation expected to reach over 50 billion by 2025. A recent acquisition of many AR Startups gives rise to such propositions.
Virtual Reality
If AR is about the rendering of your dream car in front of you, Virtual Reality gives you the option to interact and experience with the vehicle without going to the shop. Most of the VR technologies will have a head-mounted display(HMD), which worn on the head or part of a helmet.
Startups like virtual spaces, surgical theater are some examples for to what extend VR tech can provide services. Tech giant Facebook has been very active in this space with technologies such as Metaverse.
Blockchain Technology
Blockchain is a ledger technology where it distributes and decentralized to provide security and reliability using different cryptographic and distributed algorithms. Blockchain platforms like Ethereum, Solana and Hyperledger open the door to more possibilities.
Check: Staff Augmentation and Outsourcing
Advantages of Outsourcing Web3 Requirements
1. Saving time & 24/7 workforce
We can bring a time zone basis advantage between the outsourcing location and your country. You will get the job done while you are not present for the day. And get delivered your service the next morning. This in effect gives you a unique benefit of round the clock operations.
2. Cutting down expenses
Cost-saving is the visible benefit that brings out by outsourcing your Web3 need. Here you can incorporate interesting new soloution at a lower cost and better quality. There is about 60% of cost savings when outsourcing your work. The quality of services will be high ensuring the low-cost.
3. Wide talent pool access
Try not to invest resources for your business. Outsourcing can take care of your needs with their highly skilled resources and have experience handling the business needs of different companies. Get access to the expertise and abilities of Armia Systems.
4. Upscaling abilities fast
Experianced development agencies offer high-quality deliverables and minimize the total time to reach the product in the marketplace. Thus you would be better at delivering a value-added proposition. And it will help to convert the idea into the product faster.
Once you need to upscale, you don’t have to worry about what everything is as every process is documented. Usually with new technolgies such as Web3, its hard to upscale as their development is dynamic and companies lose track of their exisitng work.
5. Increased Efficiency and Productivity
Outsourcing will increase the productivity of the organization and employees. It will increase the efficiency of the core areas of the company. You will be more focused on what you have to do and to provide better services to the outside sources.
Productivity is also increased after successful implementation of Web3 in the company in the form of better record, automation and communication.
Check: How to communicate with your outsourced development team?
Challenges of Web3 Outsourcing
Every new brand is attempting to utilize outsourcing to reduce expenses. The client needs better service at a low cost, and the vendor wants profit. So this must be managed thoughtfully to provide expected benefits for clients and vendors. On the one hand, there are a lot of benefits with outsourcing, and at the same time, it has many risks and challenges with huge responsibilities.
Misunderstanding of the Project
The client and the outsourcing agency must be aware of the terms of the project. So the client and the project executive of the outsourcing company can understand the agreement, and it will help to analyze the perspectives of each other. A misunderstanding will do a bad project, and this will hit both.
Lack of Skills
Sometimes the agency might not have the skills that the client is looking for. So this will force the agency to do with what they have, which would later end up with bad results and performance. This will happen because of the lack of prior experience and skills. Always be sure to check the credentials of your development agency and see their experaince and clients they have worked with. This is espectially true while working on emerging technologies such as Web3 and AI.
Late Deliverables
The outsourcing agency has to deliver the work before the deadline. Since the Web3 space is untested for the most part, it might be hard for inexperianced outsourcing companies to provide an accurate time estimate. Its always best to set a acheivable deadline or go for companies that provide discovery services beforehand.
Poor Time Management
The management should be aware of streamlining the process so that the entire process can manage efficiently. A fall in the process will affect productivity and the final result. So time management can reduce the chances of failure.
Check: Risk Areas in Software Development Outsourcing
Web3 Outsourcing Engagement Models
Fixed Bid Engagement
In the traditional flow of outsourcing, companies send RFP(Request For Proposal) describing requirements of the software or how IT should work. The document is consulted with developers to bid on the project, the client would go for the price they like, and development will be started.
This model gives clients cost certainty, simplicity, and budgeting advantage for clients, which makes this model quite appealing to clients.
Why are Fixed Bid Engagements wrong?
Most IT professionals know that the fixed bid contract way is terrible, but most clients don’t know that fixed bids are wrong for them also. Most of the organizations are moved from this type of outsourcing process years ago; in fact, many governments advocate creating offshore contracts that have frequent deliverables and flexibility on feature prioritization.
The fixed bidding process was introduced for price, estimation, and risk management. But comparing bids and deciding the best price is very hard, and sometimes it will go wrong, and in software, the client will be able to get better estimates from iterative outcomes than features. The fixed price model may have the advantage of reducing risk, but in real scenarios and real projects client, won’t be able to ensure that the project won’t go over budget.
When choosing IT outsourcing companies, clients should be aware of the developers that make a real decision in tech functioning, by developing a trusting link client and hired professionals can work together building the best product conceivable.
Dedicated Team Model
This model is now gaining more interest when it comes to outsourcing business. In this model, the outsourcing company offers professionals that match the client requirements and RFP details.
The dedicated team then works on the project where the client has complete control over the organization, including management means the company will have an in virtual house team.
Advantages of a Dedicated Team Model
Proper implementation of agile project methodology: Agile means flexibility to control execution and testing, which lets you manage development costs strategically.
Your dedicated virtual team: Passionate Hiring professionals will put their effort into the group forms a virtual team in the house will give you a fast response to your queries, maintaining continuity, and making workflows responsibly.
Access to the development progress: When you have a dedicated team, you will have a single window to review the development progress, which is crucial in a software development that has different stages in the process.
Scalable team size: In the DTM(Dedicated Team Model) way of outsourcing, it creates a virtual team, which means you will be able to scale your team size quickly.
Cost and Time savings: You don’t need to be worried about project management, analysis, and quality assurance, which leads to cost and time savings.
How to Outsource Web3 R&D?
According to the study, the connection between R&D, business growth, and innovation vary as per the industry. The objective of R&D is to obtain new applicable ideas to the small and mid-size businesses, which can result in improved products, systems, or services that help to increase the sales and profits of the company. In regards to emerging technologies and Web3, R&D asssumes even more improtance.
Many new-age entrepreneurs outsource their Web3 R&D for the product, process, service and component innovations, software design, and so on. This can be conducted in-house, under contract, or jointly with others.
The benefits of outsourcing R&D are:
- Outsourcing firm with better Web3 expertise
- No Shortage of workforce
- Less expensive R&D
- New-age product or service can market within a meantime
Factors that affects outsourcing R&D
Timing: For a slow or moderate growth rate of the market, in-house is the best means to obtain technology. While the market is growing fast, the chances to lose the opportunity for the new technologies developed by beginners will be high. It is always better to acquire technology before it enters the market.
Risk: The technical success of R&D is not guaranteed because of the uncertainty in technology development. The project completion will not meet the exact planned specifications. The time will extend more than the expected deadline, and the cost of R&D manufacturing will be higher than the estimate. Technology acquisition entails a much lower risk since it can see and test before the contract is signed. This risk can be reduced carefully by technology forecasting and planning.
Cost: Technology acquisition is less risky and costly for a successful product than technology development. At the same time, R&D requires high front-end investment. A small business can manufacture a cost-effective product by using R&D. The new ways of manufacture allow the companies to realize the revenue with the sales of the product.
Financing: By investing in R&D programs, you will be able to develop technologies and solutions that can open new markets to your organization. This will attract investors to your organization, and you will get financing to reach your business goals. Many of the corporate investors are interested in companies to become industry leaders.
Do you want to outsource your Web3 projects?
Do you have an awesome new product idea in the Web3 or Emerging-tech space?
If your project requires extra expertise do outsource with us. We have a passionate and efficient team of developers to work with you!
