The new way to scale Czech business fast with developers from Ukraine
No wonder that almost every company needs qualified technical talents. Many businesses go for offshore outsourcing services instead of hiring employees locally to minimize costs for IT requirements. IT outsourcing solutions have become widely used recently: according to the research conducted by Inavero, 63% of departments have experience in managing remote teams, and developers are among them.
Team Extension or Dedicated Team Model is a fairly new business model but keeps gaining popularity worldwide. Mobilunity is a fast-growing IT company based in Kyiv, Ukraine, which offers the opportunity to extend development teams with professional IT staff from Ukraine on remote basis and allows full control over the software development process.
Still, IT outstaffing is being associated with certain risks, so we decided to ask Mobilunity C-level executives, Cyril Samovskiy, CEO of Mobilunity and Alfonsine Williams, Director of Business Development, to shed light on the key issues and processes of their business model.
What’s the difference between outsourcing and your model of providing dedicated resources?
Traditional outsourcing is when a client fully gives over project specs and responsibility for project completion to a service provider. That service provider handles the project from A-Z with their project management and their developers, and the client does not engage fully with the vendor’s team. Once the project specs are given to the vendor, an estimate is given to the client either in hours (as hourly rates are charged) or at a fixed cost. Once the client agrees on that estimate, the vendor begins work and returns a completed product to the client. The vendor manages the team and allocates resources as the vendor sees fit.
Our model is different in that with it, the client fully engages with the team, and that team is entirely dedicated to the client. The vendor offers support. However, the team working with the client is the client’s team. That team works on no other projects other than that of the client. The client engages fully with the team and has Project managers on the client’s side that manage the team. The cost is based on a monthly rate, not hourly and is for the full-time services of each member of the team.
Hiring freelancers can be frustrating and risky. In which ways do your model minimize risk associated with remote development teams?
We are an actual legal entity that takes responsibility for the services we provide. Every developer is in-house in our offices in Kyiv so that we can provide support, infrastructure, and security. Our staff services ensure that all is running smoothly with communication, and our service agreements are structured to ensure that our clients understand their legal rights and our contractual obligations. This is far more than what a company would typically find using freelance platforms, with developers that are all over the world, where you as a client have no control over who sees what and how as they work.
Why use a dedicated team model? What advantages does it have over other traditional models?
The Dedicated team model is exactly what the name implies. Our client gets a dedicated team of developers that work with them and only them, on their projects. I call the advantages the 3 C’s:
Control – you maintain your processes, as the team is built around and adapts to your needs.
Cost – just like going to a grocery store, it’s far cheaper to buy in bulk. We charge one monthly rate, and that allows us to secure the developer(s) that you need at a rate less than what you would pay a freelancer charging 30+ dollars an hour.
Consistency – as this team is dedicated to you, they become a part of your workflow and processes. You build a relationship with your team. They learn how you like to operate, and give you a solid base to build around for the long term, which saves you, even more, time and money as you will not need to spend a lot of time on onboarding new developers.
How long does it take to build a dedicated team?
With our knowledge of the market and our in-house resources, it genuinely takes no more than 2-4 weeks to source a team. A lot of this depends on the positions needed, and the amount of feedback and engagement that we receive from our clients. We will always be honest and upfront, and we always make our clients aware of any issues that may prolong the process.
What kind of companies typically use your services?
We don’t have a specific type of company that uses our services in regards to products or product development. For us, it really comes down to what the client wants to achieve. We do work a lot with startups, because of our model, with its flexibility and cost, allows startups to grow while not losing any operational control. We have worked with companies across almost every vertical from Insuretech to Agrotech, to Digital Marketing agencies and beyond.
Ukraine has had negative press lately in regards to the conflict in its Eastern regions, what do you say to those who ask whether or not Ukraine is a safe place right now? Is there a change in how you deal with customers since you started with Mobilunity and since the beginning of the conflict in 2014?
Many people have concerns, usually because they are not here, and only have the news reports to go by. In Kyiv there is no conflict, the conflict zone is contained and in the east of the country. If we are talking distance, it would be the equivalent of someone traveling from Zurich to Zagreb. We deal with our clients the same way that we always have: with honesty, empathy, and facts. You would know nothing of the issues in the east should you come to Kyiv, and that is exactly what I suggest to our clients. Come to Kyiv and meet the people and see how far removed Kyiv is from the conflict. Developers in Kyiv have tremendous opportunities in regards to travel as they can work from many places, and yet they have not fled. The IT community has risen, the infrastructure has improved, and the sector itself is seeing growth.