From whom do insights come?
At DAC.digital, Radek performs the role of Head of Growth and executes growth and business strategies for one of Europe’s fastest-growing software and AI companies. With over 14 years of experience in the IT industry, he has helped numerous clients and partners achieve their digital transformation goals and create value for their end customers.
Leveraging External Software Teams
In today’s fast-paced and competitive business landscape, companies across various industries are seeking ways to optimize their operations, reduce costs, and bring products to market more quickly. One such approach is to engage an external software team, particularly for projects that require the use of core backend technologies like Java and Kotlin.
This article will explore the benefits of partnering with an external software team for businesses in the e-commerce, b2b-commerce, entertainment, travel, and marketing technology sectors. Later, we will also discuss several companies that use Kotlin or Java as their backend technology and how partnering with an external software team can impact their returns.
First, let’s explore some common problems and pair them with solutions when companies can leverage their internal activities with external technology partners.
Problem: Slow In-House Recruitment and Scaling Challenges
In-house recruitment activities can take considerable time, with building a dedicated senior software team taking up to six months or more in countries like the USA, The Netherlands, or Switzerland. Additionally, small to medium-sized companies and scale-ups often face limited internal resources, which can support the hiring and onboarding process and high time pressure, making it challenging to build and expand their teams quickly. This slow process can hinder companies in various industries, including e-commerce and B2B commerce, entertainment, travel, and marketing technologies.
Solution: partnering with an External Software Team
A well-matched technology partner can help companies assemble a dedicated software team within as little as twenty-one days, enabling them to start working on projects much faster. By using Java and Kotlin as core backend technologies, these external software teams can offer the following benefits to businesses across industries:
1. E-commerce and B2B Commerce: companies like Allegro, TB Auctions, and OLX can benefit from a faster time-to-market for their products and services, allowing them to stay competitive in the rapidly evolving e-commerce landscape. Java and Kotlin provide powerful backend solutions that can handle high-traffic online stores and facilitate seamless transactions. By partnering with an external software team, businesses like that can access a larger talent pool with specialized expertise in these languages and across other frameworks like, e.g., React or having cross-technology software experts, ensuring that their platforms are scalable, secure, and efficient.
2. Entertainment: streaming platforms like Netflix and Dailymotion require robust backend infrastructure to deliver high-quality content to millions of users worldwide. By leveraging an external software team with expertise in Java or Kotlin, they can reduce the time and costs associated with in-house recruitment, focus on their core competencies, and accelerate the development of new features and enhancements. Additionally, an external software team can help drive innovation in the entertainment industry by introducing new technologies and methodologies that improve user experience, e.g., with the application of a computer vision system or gaze estimation to record and measure reaction types of the platform users while watching a movie.
3. Travel: Online travel agencies (OTAs) such as Expedia, Kayak, or Hostelworld must manage complex backend systems that integrate with numerous partners, including hotels, airlines, and car rental agencies. By outsourcing the development and maintenance of these systems to a technology partner with Java and Kotlin expertise, these OTAs can streamline their operations and more effectively manage their costs. Moreover, an external software team can help OTAs mitigate risks associated with key personnel losses and maintain a consistent skill level within their in-house teams.
4. Marketing Technologies: Companies like Zeta Global, Semrush, and eyesquare rely on powerful backend systems to process vast amounts of data and deliver actionable insights to their customers. By partnering with an external software team specializing in Java and Kotlin, these marketing technology companies can access specialized expertise, reduce onboarding time and costs, and enhance their competitive advantage in a rapidly evolving market.
Problem: High Recruitment and Hiring Costs
Recruiting and hiring software developers, especially senior developers, can be a costly endeavor. This problem is particularly evident when comparing the hiring costs in different countries, such as the United States and Poland. You can read about it more in my first newsletter issue.
Solution: Cost-Effective Outsourcing with External Software Teams
By partnering with an external software team, companies can access cost-effective talent from countries like Poland, where the average hiring cost for software developers is lower than in the United States. This approach enables businesses to save on recruitment costs, such as advertising, screening, and interviewing candidates, while still maintaining high-quality development standards. At the same time, the in-house resources of such companies can focus on core activities.
Problem: Lengthy Hiring Process for Senior Developers
The hiring process for senior developers can be time-consuming, with companies spending months searching and interviewing for the right candidate. This lengthy process can slow down software development velocity and delay time to market delivery.
Solution: Accelerated Access to Skilled Professionals
Working with a technology partner can provide companies with accelerated access to skilled senior developers. These technology partners have extensive networks and access to a wide range of professionals, allowing them to provide the best possible team for the project, including experienced senior developers. E.g., DAC.digital, with its vast network of over two hundred other Polish software agencies, has access to over 4000 software developers available within two to three weeks.
You can see that every problem can be solved with relevant solutions. In the next part of this newsletter issue, we will discuss other important aspects of external software teams of Java and Kotlin developers, such as:
- Impact of Hiring Costs and Time on Software Development Velocity
- Calculating the Benefits of an External Software Team for a Marketing Technology Company
We will also look at the companies using Kotlin as a backend technology and how an external software team can benefit your company.
Does the problem-solving approach resonate with you? At DAC.digital, we can help you with the issues your company is facing and turn your idea into the next big thing. If you’ve hit a snag in your project, schedule a meeting with me, and let’s find out how to make things right.