Delivery team as a subscription service: Who needs this and why
In this post, we will tell you about a new phenomenon in third-party software development services which is a subscription.
Contents:
- Delivery team as a subscription service: What it means
- Benefits of delivery team as a subscription service
- Subscription service’s drawbacks or what is hidden inside
- Most popular use cases of delivery team as a subscription service
- Service-based or product-based delivery team: What’s the difference and what to choose for your business
The Washington Post insists that everything’s becoming a subscription — from clothes, restaurants, and delivery to car washes. But how to apply this to software development?
In this post, you will discover subscription service benefits, figure out use cases, and recognize what is better to use — a service-based or a product-based delivery team.
1. Delivery team as a subscription service: What it means
Delivery team as a subscription service is a business model in which customers buy software development services for a recurring fee instead of a one-time expense. The recurring fee is usually paid monthly or yearly based on the customer’s choice. This model helps customers capitalize on third-party business relationships: they will continue to purchase the subscription until they see its value for their business.
For instance, if the customer does not have the necessary domain expertise in-house to build a relevant product, they no longer need to hire new specialists themselves. It is easier to find a vendor who offers a delivery team as a subscription service with a project manager and a team of experts with the required expertise.
The delivery team will build the solution needed, implement it, and make all necessary support and maintenance services post-release.
2. 9 Benefits of delivery team as a subscription service
Delivery team as a subscription service offers more flexibility and less management efforts. But does it have other benefits for businesses?
Here are a bunch of the most visible ones.
- Reduced Upfront Costs
Software development as a subscription service reduces the upfront costs for businesses. This allows businesses to get the software they need without having to make a large financial investment. Subscription is another outsourcing. Quick comparative analysis of the developer’s average hourly rates across different regions explains the cost-efficiency of subscription better than words. And even more. Did you know that a bad hire of tech talent can cost a business up to 300% of this specialist’s salary?
| Region | Average Hourly Rate |
| North America | $70 |
| Western Europe | $75 |
| Eastern Europe | $55 |
| Latin America | $55 |
In case you intend to hire freelancers, think twice about costs. Depending on where freelance developers are located, their hourly rates cover their expertise, bonuses, and social packages. An average hourly rate of a freelance developer differs from $41 to $70. Let’s see it in detail here:
Delivery team as a subscription service dramatically reduces costs. The only thing you need is to choose the most relevant subscription plan that covers your custom business objectives.
- Scalability
Using subscription makes it possible for businesses to scale their software needs as their business grows. - Increased Sustainability
Development services as the subscription model is a sustainable way to do business because you do not need to make any upfront fees before you start using the product. Pay-as-you-go means that you pay for software only when and until you need it. - Flexibility
Software development as a subscription service gives businesses the flexibility to switch between different software products as their needs change. This allows businesses to stay up to date with the latest technology and have the right software for their needs. - Customer Support
Software development as a subscription service typically offers customer support to help businesses with any issues they might have. This ensures that businesses have access to support when they need it most. - Security
Subscription service typically includes security upgrades and bug fixes as part of the subscription. This ensures that businesses have the latest security updates and bug fixes, keeping their software secure and up to date. - Access to expertise
Businesses get access to a team of experienced professionals with expertise in necessary aspects of product development, from design to testing and deployment. This ensures that the software product is of relevant quality and meets the business needs. - Faster time-to-market
Subscription helps businesses speed up their time-to-market for new software products. With no extra time for hiring, effortless management issues, and full control over the project, businesses can start generating revenue from the product sooner. - Reduced risk of failure
By outsourcing product development to a delivery team as a subscription service, you can reduce the risk of project failure, The delivery team takes responsibility and ensures that the software product they implement meets the business requirements, and any issue or bug are quickly resolved.
All these benefits make a delivery team as a subscription service an appealing initiative that makes businesses stay ahead. But can everything be so nice? Let’s explore some negative things that are usually left behind.
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3. Subscription service’s drawbacks or what is hidden inside
Delivery teams as a subscription service gains more and more popularity now. While we see how many benefits this model can bring, there are also a bunch of drawbacks to keep in mind. Here are the most important ones.
- Lack of control
While subscription gives you freedom and flexibility, you may get into trap not controlling your software. Businesses should rely on the subscription provider to make updates and improvements. Also, make sure you can further customize easily the software you get to your specific needs. - Dependence on the provider
Businesses can find themselves dependent on the provider for technical support bug fixe, and other maintenance tasks. It is important to realize that if the provider experiences downtime or goes out of business, users may be left without access to their software. - Security concerns
This drawback is not related ultimately to subscription. But you should be always aware that you entrust your data to the provider. Make sure that they take adequate measures to keep that data secure.
If you run an in-house team, you won’t have 100% guarantee that your employees make you progress, build a high quality product, and provide reliable data protection.
From our experience, a reliable vendor and trustful relationships conquer all possible drawbacks of third-party contracts including subscription services.
You have more control when it comes to managing your budget when using a subscription model. You only pay for the product and you decide when to use it. You don’t need to account for the money spent on licensing, maintenance or support.
4. Most popular use cases of delivery team as a subscription service
Delivery team as a subscription service can cover lots of custom business needs. Here are the most popular use cases where this model is especially beneficial.
- You are tight on budget
No need to repeat that delivery team as a subscription costs less than in-house. It is a very cost-efficient solution. - You don’t have expertise in a certain domain
Subscription offers you an access to the required expertise across the world - You need a development team that is ready to work right now
In case you need extra help from one or two developers, it is probably better to hire them on your own. However, if you need a tech team, it is much easier to subscribe to it as a part of a subscription service. - You need support and maintenance services for your project post-release
Delivery team as a subscription service usually includes not only implementation packages but also support and maintenance services after deployment. - You have a project with standard tech requirements
Most subscription packages offer a pre-defined set of services, such as UI/UX design, development, testing, and support. In case you project goes far beyond a subscription’s scope, it is better to consider other business models.
From what you can see now, the subscription model may cover the needs of most technical projects with ease.
5. Service-based or product-based delivery team: What’s the difference and what to choose for your business
According to your business needs, you may choose either service-based delivery team or product-based delivery team as a subscription service.
Service-based model is somewhat similar to Software-as-a-Service (SaaS) model. Its main focus is on the development of custom technical solutions rather then on pre-built software products. This model is the best fit if you have a big business idea that should be implemented into the great technical solution from scratch. Besides, this model will help you enhance your existing product if you need it.
When it comes to a product-based delivery team as a subscription service, it means that this team usually has a ready-made solution that can be provided to the new client per regular fee. You should keep in mind that according to GoodFirms, building a new software product from scratch may cost you up to $120,000. That’s why in case you do not need to build a unique software product, it is more appropriate to subscribe to a product-based delivery team.
Wrapping up all that we shared above, delivery team as a subscription makes it easier to get high-quality ready-to-use software development services. It offers you an access to the widest pool of proven tech talents with relevant hard and soft skills. It is often even more cost-efficient than working with an outsourcing vendor. After a thoughtful analysis of your project requirements, the last thing is to choose the best fit for your business.
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