IT Body Shop or SQUAD: what does my company need?
- Software development
Hiring an IT professional is increasingly challenging for companies. Brazil trains 46,000 professionals in the area per year, but 70,000 are needed to meet market needs, according to Brasscom data. Therefore, it is necessary to adopt new work and hiring formats, such as IT Body Shop or SQUAD.
These outsourcing models are increasingly used, as companies are able to meet their needs in the IT sector even without hiring professionals in the area in a traditional way.
There is a solution for every need, from the simplest and most punctual demands to the most complex. We explain below which one has the greatest connection with your needs so you can make the right choice.
What is IT Body Shop
The Body Shop occurs when an IT company allocates its skilled workforce to clients, temporarily incorporating the developer into the in-house IT team, whether on an hourly, per day, or per project contract.
This practice emerged in the 1990s, when the dreaded millennium bug was just around the corner. There was a great demand at this time for IT specialists who could help protect systems from potential problems.
India had plenty of skilled labor available at the time. Indian companies began then to be solicited and they temporarily sent their employees to countries in Europe, the United States and Australia.
Initially, it looked like it was a golden opportunity for the allocated trader. However, this relationship became known for the low salaries paid and the type of work they were assigned, usually the most monotonous and mechanical ones that no one wanted to do.
Even after decades, some companies still turn up their noses at the IT Body Shop, because according to them, the contracted company offers the employee the allocation, but does not give him a career plan or development opportunities, which also leads to high employee turnover in the role.
However, there are serious companies that use the IT Body Shop. For example, they are useful for maintaining printers, servers or performing backups. Functions that may be difficult to hire in a labor market with such a scarce workforce.
Advantages of Body Shop for IT
- Avoids the need for recruitment and selection of professionals;
- Reduction of hiring costs and charges;
- Ideal for projects and specific needs.
What is SQUAD?
The idea is for employees to work in small multidisciplinary teams to carry out projects. Then the client hires a team – a SQUAD – that can develop an entire project or a part for which it was hired.
For example, your development team needs to build a complex application, but you’re on a tight deadline and your professionals are busy with other demands. In this case, you can then hire a SQUAD for one or more stages of the project and expedite delivery.
Although this format emerged in the 70s, it was with Spotify that it gained notoriety and greater adoption.
How does a SQUAD work?
Spotify calls this a “non-model” of project management, as it is quite flexible and open to change.
Squad can have 3 to 10 people on the team, being a self-managing and collaborative group. Everyone can share functions regardless of the area of activity, which allows each team to decide how this process will occur, internally stipulating deadlines and solutions to fulfill the briefing.
We have an article here on the Blog that explains in more detail what SQUAD is and the advantages of having multidisciplinary teams in your projects. Be sure to read it!
This autonomy also gives the team the freedom to solve problems and the chance to think about innovative processes that can contribute to future company projects.
In addition to hiring a third-party SQUAD team for point solutions, have you ever considered the possibility of adopting this “non-model” in your business? After all, having a multidisciplinary team can develop talent and bring new solutions to your business.
Advantages of SQUAD
- Ideal for more complex projects;
- Deliveries are made more quickly;
- Collaborators develop by having contact with different projects, teams and ways of working.
So, IT Body Shop or SQUAD?
Although both models are attractive to the company that does not have any and is interested in making this investment, our recommendation is Squad!
In relation to the Body Shop model, the Squad approach brings more optimization and innovation to the process, a factor that has been increasingly necessary in the technology market that requires constant and scale updates and adaptations.
Headaches with replacement of professionals, little engagement of the contracted team with the company’s projects and lack of specialization are common in Body Shop contracts, while hiring Squad presents added value on the results due to the collaboration and continuous learning of the team .
If, on the one hand, the IT Body shop model waits for demand to arrive to execute a response action, Squad seeks to anticipate actions, aiming to deliver the best result in the shortest possible time.
Another factor of great importance is that the change of team or collaborator of the Body shop directly affects the result of the project, while the Squad learns and evolves through pragmatism, empiricism and short feedback cycles, making replacements of professionals much more transparent and organized.
The methods adopted by Squad also favor the feeling of belonging and commitment to the company’s results. These results are analyzed through well-established metrics, collected and structured with the most appropriate tools for the project.
Nowadays, any new project presented to the market needs to work in preventive models and not just wait for any intercurrence to happen and then react, because this generates loss of interest on the part of the end user and breach of contracts. Currently, it is essential that the company has a range of actions to solve its problems effectively and efficiently.
Your project needs a more robust solution, with a multidisciplinary team at your disposal. SQUAD is most likely your best choice, bringing more agility and different perspectives to the development of your company’s projects.
Do you want to understand and make the best decision? Get to know our Agile Managed Squads model.