Forem: Artem Kobilinskiy

13 TECHNOLOGY TRENDS FOR 2020

Artem Kobilinskiy — Fri, 31 Jan 2020 14:34:32 +0000

When discussing technology trends, 2020 is often deemed to be part of the “post-digital era”. We want to determine whether it is indeed the start of a new historical period or just a bold headline. Let’s look at what technology we should all look out for in the near future.

1. Progressive Web Applications Becoming the Norm

Progressive Web Apps, or simply PWA, have been on the rise for a while now. Here we talk more about PWA. The idea of a website having complex app-like functionality is the next logical stage of evolution of the browser-based technology. Web development, for the longest time, was simplistically perceived as the creation of websites. PWA technology takes this area of software development to the next level. It battles ever-increasing app fatigue and offers a convenient cross-platform solution for mobile and desktop devices at the same time.

2. Artificial Intelligence

It’s hardly a surprise to find artificial intelligence at the forefront of this list. Even though it isn’t a new thing or a hot take, AI is confidently establishing itself in new areas. By all accounts, it is here to stay for years and years to come. In fact, AI software is expected to grow 154% with its value reaching an astounding $14.7 billion by 2025. It’s safe to say that artificial intelligence is not just a trend for 2020 but for all of the 2020s.

As far as the practical application of this technology goes, the range of its uses is truly massive. It is already successfully used in data analysis on every level, and its use in prescriptive analytics and decision making, machine learning, and natural language processing will further solidify AI's place in both our work and personal lives.

3. Increasing Demand for IoT Solutions

There is a misconception among the people who don’t interact with the Internet of Things (IoT) systems that it’s still far in the future. Ironically, for most this line of thinking will soon be a thing of the past. Whether you notice it or not, this technology already impacts the daily lives of millions of people. In the span of five years between 2015 to 2020 the number of devices supporting IoT increased more than 5 times.

From heavy machinery equipment making fields, such as construction being run at never before seen efficiency, to simple kettles you can set to make you tea by the time you get home from work, IoT is everywhere. However, the spread of the usage of IoT demands a wider bandwidth to sustain it. If only there was some kind of technology that can make that possible. Well, there is one such thing...

4. The Spread of 5G Availability

20 Gb/s sounds spectacular to anyone with even the vaguest understanding of internet speed. So, it’s no surprise that widespread 5G availability is so highly anticipated. With the public release being planned in 2020, the hype surrounding this technology has never been greater. Low latency, great bandwidth and the speed of this wireless connection will completely transform the landscape of the internet and tech.

Access to such a high-quality connection removes many boundaries. Augmented reality constantly updated in real-time, buffering-free streaming of huge amounts of data and content, high precision movement tracking, and smart city technology will all be possible thanks to 5G.

5. Lag Elimination via Edge Computing

Edge computing is a revolutionary approach to cloud computing. Just like 5G, the main benefit is the reduced latency. It is achieved by utilizing the edges of the cloud network to be closer to the target. This makes the response time near-instant and enables efficient processing and analysis of large amounts of data whilst also saving bandwidth. With an increasing number of platforms using the network such as IoT and wearable devices, it will be more necessary in the coming decade.

6. Changes to Outsourcing Practices

As outsourcing businesses develop and grow, they find their niches. Their skills grow with experience too. This has resulted in a number of companies focusing and perfecting specific tasks, for example, software development using .NET for IT businesses.

New areas of outsourcing will also emerge. They will include more complex processes that may focus more on business strategy rather than individual operations. Idea generation and innovation are among the new outsourcing fields you can expect to hear more from in 2020. Many companies will elect to establish cooperation with several companies, each working on a separate branch of the client’s workflow.

7. Distributed Cloud Services

As far as trends go, this is an obvious one. Distributed cloud services are already successful and widely used today. Their inclusion in this list is meant to signify the further development within this technology and even wider adoption.

Distributed cloud computing is the type of cloud computing that assembles the platform from a set of machines spread across different locations linked by the same hub. There are two subtypes of this practice: public-resource computing and volunteer cloud computing. Both of them rely on the lending of unused computing power to others.

8. Human Augmentation

While the transhumanist future is still quite a way away, the first steps have already been made. For example, subdermal implants acting like transport passes or contactless credit cards. This technology has the potential to completely overhaul the healthcare industry, but that is hardly a 2020 trend. It needs to be as safe as possible before it can have a large impact.

In this coming year, the human augmentation technology that will find the widest userbase is wearables. Areas such as fitness, military, and mining, have already made a headstart with other fields now following suit. Soon, the software development market will not be limited by only screens.

The hardware application of this type of tech goes beyond enhancing the physical attributes of a person but can enhance the mental aspects as well. The direct communication between a brain and a computer through neuroprosthetic brain-machine interfaces (BMIs) will only develop further in the 2020s, spearheaded by Elon Musk’s Neuralink.

9. Self-Perpetuation of DARQ

What is DARQ? It stands for distributed ledger technology (DLT), artificial intelligence (AI), extended reality (XR), and quantum computing. All four are impactful in their own right. However, what makes them special is the tight connection between them. Development in one aspect of DARQ will drive the other three forward, which, in turn, will only perpetuate further growth. This huge area of potential will silence the doubters and prove that not a single one of the four technologies is a fad.

While blockchain and AI are described in other sections of this article, let’s talk a bit about the other two elements of DARQ. Extended reality is used to enhance the environment of an individual and inject something informative or entertaining into it. This includes both virtual and augmented reality. Quantum computing introduces the concept of ‘superpositions’ instead of just ones and zeros. This will vastly increase the speed of any operation including machine learning and complex decision-making, and even perfectly simulating scientific experiments, among many other groundbreaking feats.

10. Momentary Markets and, Yes, Even More Personalization

At this point, it seems that personalized on-demand experiences have been a trend for at least several decades. We exaggerate, of course, but their popularity indeed continues to grow year after year due to their success. As new algorithms are perfected there are even more ways to cater to your business to each individual customer.

Momentary markets allow you to base your business around moments in the lives of your customers. With the rise of more advanced AI technology, it will enable companies to make the right offers to the right people at the right time. On-demand experiences will employ complex back-end technology and real-time analytics to meet the needs of people across many areas of business.

11. Increasing Democratization of Technology

The field of technology has certainly always been one of the most democratic. New ideas and expertise often take priority over the traditional hierarchy. This trend will continue for the foreseeable future. It will make technology more accessible to more people. This participation introduces different perspectives that can aid in finding new approaches to innovation. With rapidly developing globalization, it further blurs the boundaries across many different fields. Among them are finance, information and, of course, technology.

The cultural impact of these changes has garnered some backlash from supporters of the status quo. For example, with a lowered entry bar some highly-trained specialists may become displaced, or their work may become less valued. As new tech becomes easier to understand and use, many businesses already find it hard to keep up. However, this trend shows no signs of stopping, and will only grow in the future.

12. Decentralization and Different Views on Data Security

Continuing in a similar vein, data security has inspired many arguments. Who should control the data, where should it be located, and how to guarantee its safety? It has been a truly polarising topic, however, the aforementioned democratization of tech has drawn a trajectory for future development.

Blockchain was something that many have written off as a fad that came and went. However, it’s not that simple. It looks like this technology is here to stay. As it becomes more widely adopted in 2020, you’ll particularly notice some changes in data security.

Depending on your personal views you may look on the topic differently. Some believe that the safest place to store data is on a centralized cloud server from a time-proven and reliable provider. Others think that sensitive information should only be stored locally to minimize the risks of leakage. The third option that is currently garnering the most attention is blockchain technology. It allows for data to be reliably encrypted and stored across multiple machines. This ensures that even if several machines are hacked or become unavailable, your data remains safe.

The untraditional approach and lack of a single authority are the reason many people are skeptical despite all the evidence for transparency and security. We’ll see where 2020 takes us, but this promises to have a large impact on the technological landscape as a whole.

13. Hyperautomation

Automation, particularly that of business processes, is something that has been successfully gaining traction for quite some time. Therefore, it’s not really a surprise that it is included on our list. In fact, our company specializes in this technology. Being immersed in this field we can assure you that automation is still in its infancy. Complete elimination of human intervention on a large scale, sometimes called hyperautomation, is the end goal for many businesses.

Hyperautomation can be achieved through further development of the business process and robotic process automation. As businesses successfully implement these solutions, they often seek to continue in a similar vein. Introducing artificial intelligence, for example, can increase the number of potential new operations that can be transformed from tedious work to background processes.

So, What to Expect in 2020?

Trends aren’t always a clear look into the future. Some can peter out, while something completely unexpected can change the entire landscape for years to come. With technology trends, 2020 promises to be an exciting start of a new decade. Rapid growth and innovation are definitely on the horizon for roaring twenties.

A Case Study of a Confidential Custom CRM Project

Artem Kobilinskiy — Thu, 16 Jan 2020 15:02:52 +0000

CRM for business helps companies manage their customer relations. It logs all interactions, store all contact information and provides detailed analytics.

This is crucial for any organization but especially for ones dealing with large amount of data. For example, traders and brokers.

We want to share with you our project for such a client. Also you can have a look into how we operate!

Financial software is essential for maximizing profits and keep a competitive edge.

We offer free custom CRM consultancy services to help you decide what is best for you.

Learn more about us on https://digitalskynet.com

Time tracking software - SkyTime Review

Artem Kobilinskiy — Mon, 13 Jan 2020 07:55:58 +0000

In this review we'll tell you about Skytime — our own time tracking software. It provides information on the productivity and efficiency of each employee. Also, it allows them to work from any corner of the globe and still contribute. It supports all major operating systems and has integration with platforms such as GitLab, Jira and Asana.

We plan to make this app a part of our upcoming business intelligence ERP system. Stay tuned for that if you want to see Skytime in action.
We were motivated to create such a tool to provide our clients with detailed reports and further increase the transparency of the development process.

Need custom software for your business? Contact us and see it for yourself!

Learn more about us on https://digitalskynet.com

Cloud Service Models: SAAS, PAAS, IAAS - Which Is Better For Business

Artem Kobilinskiy — Wed, 18 Dec 2019 06:54:45 +0000

The differences between cloud service models can be confusing. SaaS, PaaS, and IaaS all sound similar even though they are vastly different. The only real similarity is the cloud deployment of these services. Let’s take a closer look at what these models are used for and how you can benefit from them.

What Is a SaaS Model

Software as a Service (SaaS) is the most common and widely used cloud service model. They are either free or have a pay-as-you-go model. In fact, most people already use such platforms. Gmail, Google Docs, and Office 365 are all examples of this type of software. Their other distinguishing characteristic is in the level of control. The vendor is the owner of these services while the user has limited access to their functionality.

The delivery is extremely easy for the user. It works on any platform without any downloads or installations. Services are available directly in a web browser. Among the typical characteristics of this model are their centralized nature, remote server hosting, and lack of manual updates.

Pros:

Reduced expenses on installation and integration.
Quick and easy access.
Streamlined upgrades.

Cons:

No integration support since the service isn’t a part of the internal infrastructure of the organization.
It may be difficult to stop using the service. Some providers offer payment models that lock you into using their product sometimes without the ability to export the necessary data.
Potential for data leaks and security breaches.
There is a lack of customization options.
The provider has control over the product and its features.
Limited or locked features.
Downtime and performance issues. These usually happen at the least opportune times. With SaaS, you can’t do anything about it since it’s fully up to the vendor to provide support and fix any pressing issues.

Examples of such services: Google G Suite, Trello, Salesforce, Dropbox, GitLab, and GitHub. You can also see our own SaaS projects here.

When to use SaaS:

Personal use. You are most likely already using them every day.
Small companies or startups in need of a quick launch.
Small or easy projects that require collaboration.
Apps that aren’t used regularly.

What Is a PaaS Model

This model allows its users to run, develop or manage applications. It is easier and often cheaper than building it from scratch but still has all the tools for the full cycle of development.

There are three types of delivery for such platforms:

Public. A public cloud service where the vendor provides the servers, OS, middleware, storage, and other features to deploy an app. The end-user has limited configuration options. Originally, this was the only intended type of PaaS but with time other forms have also appeared.
Private. A private cloud service behind the protection of a firewall. It offers you the best security of all of the three options. They can be installed on the premises of an organization and on a private cloud.
Hybrid. As the name suggests, it combines some elements of both of the previous types.

Pros:

Cost-effectiveness. As a middle-ground between SaaS and IaaS, the pricing for this model is also usually somewhere in between.
It has more advanced functionality than SaaS. It provides the hardware and middleware that is required for advanced tasks.
Collaboration. The location of the members of the development team doesn’t matter. They can be in the same office, do some of the work remotely, or be spread out across all corners of the world - the PaaS model makes it easy for them to work together.
Quick time-to-market. It completely eliminates the time needed to set up an entire infrastructure. This makes integration quicker and easier.
Focus on the tasks at hand, while the back-end processes are handled by the vendor.
Supports different programming languages. You don’t have to adapt to the language of the model.

Cons:

Limited control over the vast majority of back-end processes.
Operational features are sacrificed for convenience.
Expensive at large scale. This makes scalability quite limited. You need to pay extra for each individual user or contributor.
Security issues. You completely entrust all of your data to the provider. If the protocols are breached or data gets lost you are completely out of luck.
Focus on specific narrow areas and lack of general-purpose solutions.
This puts the usefulness of the model into question for most enterprises.
Vendor lock-in. Software developed on platforms as a service are forever dependent on it for future updates. It is difficult to migrate your projects to other providers. Additionally, some elements can be incompatible with the cloud platform.

Examples of such services: Google App Engine, Windows Azure, AWS Elastic Beanstalk, Apache Stratos, Heroku, OpenShift.

When to use PaaS:

Software development at any level.
When you have a specific development task that doesn’t require infrastructure.
When you want to test an idea or experiment with a potential project.
A midsize company that doesn’t need to invest in IaaS yet.

What Is an IaaS Model

The IaaS model provides you with virtualized computing resources than can completely replace on-premises infrastructure. This includes storage, servers and networking resources. The payment model is often also pay-as-you-go. There are services that charge either for time or for the use of virtual machine space. As a result, this model is quite popular among IT administrators and organizations that don’t want to invest in expensive hardware. It’s also the most secure and the most scalable option out of the three.

Pros:

Complete control over the entire environment with all of its aspects.
A complete functional infrastructure without any expenses on hardware or in-house software.
Flexibility. It allows you to experiment with your projects without needing to invest in the creation of complete infrastructure on your premises.
Security. Nobody but you can access the data you store on IaaS. Even though it is stored on the vendor’s server its safety is guaranteed.
Scalability. You don’t have the limits of the previously discussed models with this option. The resources are configured and allocated according to demand. More users mean more resources and vice versa.

Cons:

It’s noticeably more expensive than the other two models even at a basic level.
It is your responsibility to maintain the virtual machine with all of its components. As a result, it can take up more of your time and energy.
The storage of data on remote servers can be considered a security risk regardless of the guarantees of the vendor.
Poor support of legacy applications. Cloud infrastructures often aren’t designed for that functionality.

Examples of such services: Amazon Web Services (AWS), Rackspace, DigitalOcean, Linode, Google Compute Engine (GCE).

When to use IaaS:

IT administration purposes.
Website or application hosting.
Virtual data centers.
Complex data analysis.
Rapidly growing companies with the need for scalability.

So, What Cloud Service Model to Choose?

As you may have guessed the answer depends on what your intended use is. If you are an end-user who just wants access to basic functionality, go for the SaaS model. If you are a software developer who needs a coding environment with tools that will help, choose PaaS. Last but not least, if you require virtual machines for the purposes of hosting, testing or whatever else, go with IaaS. Any of the three cloud service models is a perfectly viable choice. However, their uses are so different that it’s hard to define one clear winner.

How to Estimate Software Development Project

Artem Kobilinskiy — Fri, 13 Dec 2019 16:35:42 +0000

Software development project estimation is the calculation of the cost and the time that its completion will take. This practice helps the client determine the feasibility of the whole process. It helps to prevent overruns and establishes the scope of the work. It ultimately aids clients with their decision of whether or not to commit with their idea.

Why Do We Need Project Estimation?

A McKinsey report states that 66% of all software development projects have overruns. There can be many factors for that but it is clear that it is a crucial part of the job. The obvious benefit of utilizing this practice is avoiding late deliveries and going over the budget. Using only past experiences may be counterproductive.

Estimation also helps project managers plan future products. It provides experience for empirical assessment later down the line. If you miscalculated an estimate once, the next will be more solid. In this way it provides the means for testing various models.

How to Estimate a Software Project

Project cost estimation has two established methods:

Fixed price
Time and materials

The former provides the whole estimate upfront and is geared to Waterfall-type development. The latter is more suitable for Agile methodologies. It gives the client separate forecasts for every step of development and is more flexible. While different in many respects, the core evaluation process consists of four main objectives:

Evaluate the scope of work
Determine its complexity
Divide it into smaller manageable tasks
Estimate each of them independently

But this is just the basic framework. The practice is customizable. There are many approaches you can borrow from including:

Comparison to similar products from your portfolio. If you have already developed something with comparable functionality, take the past experiences into account.
External expertise. You can always hire a team who will provide you with a detailed plan. Also, there is no shame in asking for help from your partners. If they have experience in a particular type of development, it will be helpful to learn about it.
Planning poker is another popular approach. First, each developer estimates the project privately. After that, the team compares and discusses the results before making a collective decision.
Bottom up & top down method entails the comparison of the independent evaluations of separate parts with one as a whole. If the difference between the two is drastic then you need to find the reason.

Why Perfect Estimation Is So Difficult?

The availability of different methods indicates that there is no one-size-fits-all solution. Making a perfect forecast that covers all of the possible issues is extremely challenging. Software development is a fluid process and the programmers often learn new technologies and make new discoveries while working. This often impacts the estimate.

Another common problem is the so-called Parkinson’s law. It states that “work expands so as to fill the time available for its completion”. This means that too much time can be just as counterproductive as not enough of it. People start stretching tasks out, which affects productivity.

That same can also be said about teams that have more people than they need. This creates too many communication links and information can get lost. Also, if the developers are working on several projects at the same time it can be taxing on their abilities. Allocate some extra hours, if that is the case.

Tips for Software Project Estimation

Examine the statistics. According to the book Manage the Unmanageable, project team only spends 55% of the time actively coding. Talking with the PMs and colleagues, reviewing the code, and research take up the remaining 45%.
Account for the risks. It’s crucial to add an additional 15-20% on top of your forecast. Unclear and more complex tasks deserve special attention.
Remember that an estimate can be flexible. When adhering to Agile methodologies, it is important to evaluate every sprint. The clients are encouraged to suggest new features and expand upon their initial idea. When this happens always update your estimate.
Part-time resources is a method that assumes that you have just 80% of your workforce at any point. This eliminates the problem of sick leaves since they are already accounted for.
Consider the immersion time. Don’t forget to add an additional 8-16 hours for the team to familiarize themselves with the requirements and do some initial research.
The individual work speed also matters. Often the people who make an estimation aren’t a part of the team who will develop the product. This results in misjudgments. The best course of action is basing the estimate on the average speed of your mid-level developer.
If you provide two or more forecasts - for example, optimistic and pessimistic - the difference between them should be less than 20%.
Always admit your discrepancies as soon as possible. The sooner you realize that you’ve made a mistake, the sooner you can adjust.

Estimation in Other Industries

While we have talked about how estimating works in software development, it is a widely used practice in other industries as well. Let’s take construction as an example.

Construction requires large amounts of planning so cost evaluation is crucial. This evaluation has two categories. The first one covers the construction process itself, equipment, labor, and materials. The second includes maintenance, utilities, land rent, and other recurring payments. It also has to be flexible. There are contingencies that have to be accounted for, such as environmental changes, labor cost fluctuations, and much more.

The industries may be different, but the core process is quite similar. Nobody wants overruns, and everybody actively tries to eliminate them through accurate planning.

Estimation Tools

There are a number of software solutions used for estimation. While they won’t do the entire work for you, they will make it easier:

GitLab, Jira, and other Agile task management services can be used for this purpose. Time tracking functionality can record the man-hours spent on each task. This gives you a reference for the future. Here's a comparison of two most popular ones.
Redmine with a cost estimation add-on provides easy calculations. It allows you to assign an hourly rate for each task and displays the final sum.
EcoSys can track changes and correlate man-hours with cost. It provides a complete estimate in a comprehensive table.
Google Sheets and MS Excel are also widely used. They have calculation features and are more familiar to users.

Conclusion

Software development project estimation is often laborious and time-consuming. If done poorly, it may result in a client’s disappointment. However, if it is done right, it becomes a framework for the evaluation of future products. Regardless of how you approach this practice, there are plenty of tips and tools that make it easier.

Insourcing VS Outsourcing of Software Development: 10 Points of Contention

Artem Kobilinskiy — Fri, 29 Nov 2019 20:28:04 +0000

The insourcing vs outsourcing argument is something that many businesses have to face at one point of their existence or another. While focusing predominantly on software development, the data can be applied to the vast majority of tasks. In order to decide which option is better for your enterprise, first, let’s consider the criteria with which the two practices can be compared on.

Insourcing vs Outsourcing Points of Contention

Scalability

Scalability with in-house teams is a lot more difficult. The process is long and arduous. To scale up, you need to hire new people and, to scale down, you need to cut your staff. This is a non-issue with outsourced teams. You can customize the team according to your resources and demands with no questions asked.

Flexibility

There is a reason the most common software development methodology is called agile. It’s a reflection of how flexible the outsourcing practice can be. In the vast majority of companies with an in-house team the processes are rigid. If you want to change any aspect, you need to clear it with a superior and prove why in this particular case your solution is better than the established tried and true system. When outsourcing you are in charge. The team will adapt to the clients needs and do their best to implement new suggestions.

Cost

This factor is often the deciding one for many cases. Lower costs is one of the main reasons people outsource their processes at all. Naturally, that means that outsourcing is substantially cheaper than having an in-house team. You don’t need to keep your partners on your payroll or allocate extra funds for overhead expenses. You just pay them for their work and that’s it.

Hiring Speed

If you don’t already have a team with the necessary skills, outsourcing is without a doubt quicker. Searching for new in-house staff members to fit your requirements can take months, especially if you need a lot of people. Not to mention, new hires need training. When outsourcing, you work with a skilled team that has the expertise you need. All you have to do is find a reliable partner and the work can start.

Security

This is an area where working with an in-house team is more beneficial. You always face the risk of fraud and intellectual property theft. It should be mentioned that there are plenty of ways to ensure the safety of your information and funds. That’s why you need to choose your partners carefully and meticulously. Insourcing allows you to eliminate such risks almost completely. Take into account how sensitive the data you work with is and never undervalue its importance.

Legality

Related to the previous point, legal issues often come into play in the insourcing vs outsourcing argument as well. When the team is employed by your company there are fewer force-majeure issues that can come up and the ones that can are generally easier to deal with. There is no confusion in terms of different legislatures and applicable laws in comparison to offshore contracted work.

Resources and Technology

More often than not, outsourced teams possess more resources at their disposal. Their entire business is focused on providing a specific service, while the tasks companies outsource are just parts of their workflow. Therefore, it’s easier for growing outsourcing providers to venture into different technological areas. Insourcing is far more rigid with that regard. It’s hard for such teams to acquire new resources due to many constraints.

Expertise

The main criteria here is the range. Local team usually have experience in one specific area that they’ve been working on for a long time. With outsourcing comes a variety of options. You can find developers proficient in any stack of technologies. That way you don’t have to fit the restrictions of your expertise, but rather can find one that is best suited to your requirements.

Communication

Many companies worry about potential difficulties with communication when working with partners from other countries. That concern is not unfounded. The time zone difference and the lack of English-speaking definitely affect the collaboration. To combat that, many outsourcing firms have adapted their working hours to better suit their partners. Also, most companies require their new hires to have a good grasp of the English language. However, nothing can be as centralized and responsive as your in-house team.

Quality

This is a contentious point for many. Those who have received low quality results once, never trust the practice again. Indeed the quality is variable, however, it’s unfair to paint with a wide brush. You have to do some research to ensure the high standard of work you receive. You know what you get from your staff but there is a real chance for you to strike gold and get higher quality work from offshore partners.

Previous Experiences

You don’t have to take our word for it. Many world-famous companies can serve as an example in the insourcing vs outsourcing debate. There are organizations preferring the former option, such as Amazon, PayPal, Salesforce, and many others. However, there are also plenty of examples of companies who chose to adopt IT outsourcing:

All of these companies have successfully used IT outsourcing and have reaped its benefits. Huge enterprises and small startups alike forge their own path with whatever works best for them. As you can see, many success stories come with the help of outside partners.

The Pros and Cons of Both Practices

Insourcing pros:

Direct control over the entire development process. Easy access to the team doing the job. There are no communication issues that may arise while working with remote teams.
Company culture ensures that your employees see the bigger picture and are dedicated to the company’s growth. They share the same vision and values, which makes cooperation easier.
Personal involvement. As a general rule, the staff is more attached to projects their company works on. Therefore, they are more interested in its success.
Possibility to raise the company’s profile. All of the achievements you reach with the help of software development are only yours.

Insourcing cons:

Large expenses required. Therefore, the return on investment is harder to achieve. Not every organization can afford it.
The hunt for employees. On average it take companies 35 days to find just one software engineer. Also, you need to take extra measures to prevent the high churn rate in this industry.
Limited expertise. You don’t have as much variety when it comes to the pool of experts who can work on your project.
You need to manage the training and improvement of the team yourself in order to enhance their skillset and technical abilities.

Outsourcing pros:

It’s easier on the wallet. The results you get are often just as high quality if not better, but for lower rates. The price/quality ratio is widely considered to be the main advantage of outsourcing.
There is no need for full-time recruitment of your partners. Once their work is done, you don’t have to use their services anymore.
You aren’t limited to the technology your guys are proficient in. You have a wide range of expertise to choose from.
More time to dedicate to other pressing matters. Time and attention are both valuable resources you can use more effectively.

Cons of outsourcing:

You can easily lose control over the development process. Many clients choose to give their partner a task and forget about it but this is the main factor that leads to misunderstandings.
Other communication difficulties. They can surface as a result of time zone differences or cultural and language barriers. These are becoming less of a factor with time as vendors become more experienced. However, you can still encounter firms with poor soft skills.
Security issues. Whenever you share sensitive information you face this risk. Some unreliable teams can use that data for personal gains. Never sign anything prematurely.
Not to say that outsourced developers don’t feel pride in their work, but there can be a lack of personal connection to the project. Chances are, they won’t be as invested in its success as your in-house team members would.

The Final Verdict

There is no end in sight for the insourcing vs outsourcing debate. Both have their advantages and disadvantages. In fact, a lot of organizations who are in the position to make that choice often settle for a middle ground of sorts. A dedicated team is one such option. You can integrate highly skilled remote contractors into an existing team. This is also a great opportunity to test the hard and soft skills of an outsourcing vendor.

Message me if you need a dedicated outsourcing team!

Tips on avoiding intellectual property theft in outsourcing

Artem Kobilinskiy — Thu, 21 Nov 2019 11:00:31 +0000

What Is Intellectual Property?

Intellectual property (IP) is a type of intangible property that is created by the human mind that is used in commerce. There are two categories of IP: industrial (patents, trademarks, business processes) and copyright (art, works of fiction, design). For many industries, it can be even more valuable than the physical product.

Types of Intellectual Property

There are different types of IP:

Patents. The rights of an individual to create and sell the patented invention.
Trademarks. A design, logo, name, or any other symbol that identifies the product from others.
Trade secrets. Formulas, source codes, processes, and other private information that is used to gain an advantage over competitors.
Copyrights. Original works and the rights to copy, modify and distribute it.

However, there is another valuable intangible aspect that often gets stolen or reappropriated. It’s the ideas. They are not universally considered to be intellectual property yet and, as a result, they are harder to protect. But you shouldn’t undervalue their significance.

Why is IP Important

Let’s look at an example. A client comes to a developer firm and shares an idea for a project. A deal isn’t struck and they go their separate ways. However, after some time the team releases an app with the same concept the client had in mind. As a result, the client has to perfect the idea and release a better version or lose a potential source of income completely.

But that’s just the ideas. Loss of more crucial intellectual property could be disastrous. Loss of personal data of your customers forever tarnishes your brand as untrustworthy. Loss of trade secrets may even make your entire business obsolete.

To mitigate the risk of this happening make sure to sign a non-disclosure agreement (NDA) before sharing anything sensitive. Keep in mind that it should be composed in a way that makes it enforceable in case of a breach. But this is not the only way to protect your IP.

How to Keep Your IP Safe

The first thing you should do to ensure its security is to assess the IP you already own in all departments and how vulnerable it is. Know what value and priority it has, where it is stored and who has access to it. You can also request an audit that will evaluate the security of your intellectual property.

Document all of this information. Always keep an encrypted copy of your databases, source codes, and other trade secrets on your servers.

Always do a background check on your outsourcing partner. Thankfully there are plenty of ways to do this. Check their social media, look through their reviews and testimonials. You can even contact some of the previous clients and ask for references. This practice will ensure that not only is your IP safe, but also that the provider has a proven track record and experience.

But don’t stop at the company. Familiarize yourself with the court system of the country you’re planning to work with. Sometimes the reputation is not unfounded.

Perhaps the most vital takeaway — don’t sign any contracts prematurely. First, make sure they are strong and aren’t skewed to benefit one party. It should explicitly state which governing law and jurisdiction is applicable. Some companies even hire local lawyers to further protect the interests of the company.

There are four approaches when it comes to intellectual property in outsourcing:

The client has all IP rights, the provider has a license
The provider has all IP rights, the client has a license
Apportion of different rights to both parties
Joint ownership between two parties

Usually, the joint ownership option is regarded as the most unsafe option out of the four. Try to negotiate if you are presented with it.

The agreement should also define the exit strategies and repercussions in the case of a breach or infringement. Dispute resolution clauses such as insurance coverage and disaster recovery plans are common practice for legitimate outsourcing providers. Also, never forget the NDAs.

What to Do If Your IP Is Stolen

Unfortunately, no matter how careful you are, there is still a chance that your partner will turn out to be untrustworthy. These situations are never easy to deal with. A lot of the time you can’t do anything.

However, it is not as hopeless as it may initially seem. If you had made the necessary preparations beforehand it is possible to seek legal action. It may take a long time, but if this clause was covered in a valid contract the fraudulent company may be held accountable.

To learn more about how to deal with outsourcing fraud make sure to read our article this topic.

Dealing with IP theft is often laborious and disheartening. However, it can be avoided by taking the necessary precautions. Remember the value your IP holds and treat it accordingly. That way the chance of losing it decreases significantly.

Book a free consultation and we’ll help you make the best choice for your business.

How to deal with outsourcing fraud

Artem Kobilinskiy — Fri, 08 Nov 2019 10:57:02 +0000

All types of outsourcing have advantages and disadvantages. One of the most common concerns the clients have is the legitimacy of the provider. It is easy to understand why. It is a big decision for companies of any size to make, from small startups to huge enterprises. It comes with risks.

Types of Outsourcing Scams

Scammers are very inventive. Therefore, it’s impossible to compile an extensive list of all the ways you can be conned. Here are just some of the most popular ones.

Dishonest developers

Sometimes teams just don’t have the right experience and take on the projects which they can’t deliver. They usually don’t intend to scam you out of money. When faced with their own limitations they either miss deadlines or disappear completely. Situations like these illustrate the importance of research but remember, that resumes and portfolios can also be faked.

Down payment scams

This con is widespread in all kinds of fields where down payments are standard. Once the company receives the money it bails on the project. The work is not delivered and you can’t reach them again. To make sure that the team is trustworthy test them with smaller projects and request shorter deadlines.

Faking the reports

A fraudulent company may artificially inflate the amount of work that is being done. It can fake the number of hours spent on the project, lie about what tasks have been completed, and other similar deceptions. Choose a firm that is ready to be transparent in its development process.

Upselling

Some companies take advantage of your lack of knowledge. They can often try to convince you to purchase services that you don’t really need. For example, outstaffing a senior developer for higher rates when a mid-level developer would suffice. You can get a consultation with unbiased professionals that will tell you exactly what your project needs.

How to Get Your Money Back

One of the main dangers of outsourcing to foreign countries is the different jurisdiction and governing law. An official contract doesn’t always guarantee the legitimacy of the deal. It can be extremely complicated to hold a party that doesn’t deliver on the terms accountable. That’s why most people who have been scammed don’t seek legal action. Hiring a local lawyer is tricky and the court systems often move at a glacial pace.

However, that doesn’t mean that you can’t get your money back. If you have made the payment through your bank then you have 60 days to file a complaint. It’s not an easy process, but it’s always worth considering. Paypal also offers dispute filing, but the chances of obtaining a successful refund are slimmer.

That’s why you should always be cautious when companies offer you unfamiliar payment services. The vast majority of them don’t offer refunds. So when your money is gone there is nothing you can do to get it back. Consider it a price for a lesson learned.

Security of Intellectual Property

Monetary losses aren’t the only damage an outsourcing fraud can inflict. Ideas and data have value too. Loss of confidential information is catastrophic to any business and often leads to future losses. That’s why intellectual property security is just as important as financial assets.

In order to mitigate this risk, the non-disclosure agreements (NDA) became the standard practice in most reliable outsourcing companies. However, it’s not always simple. It should be explicitly specified which governing law and jurisdiction are applicable in case the agreement is breached. If you have any doubts, never be afraid to negotiate. In fact, since global business becomes more widespread the international NDAs have also become commonplace.

How to Avoid Outsourcing Fraud in the Future

First of all, don’t advertise publicly that you need developers for your project. Most of the responses you will get could be legitimate businesses, but the chance of getting scammed is way higher. Instead, do some research on your own and reach out to trustworthy companies yourself.

In order to find out whether or not the outsourcing firm can be trusted, check the available information on the internet. Gather as much information as you can about the firm that you want to partner with. Here’s a few essential things you should never forget:

Look through their website. If a company doesn’t have one it is a major red flag.
Read their testimonials. See if they have any reputable clients.
Contact them directly via an online call. Learn more about them while evaluating their communication skills.
Ask the representative about their development process. Be wary if it seems too vague and don’t be tempted by low prices.
Ensure that they offer legitimate contract agreements and inquire about warranties. Don’t sign anything prematurely.
Demand regular detailed reports and multiple estimates in written form. A payment schedule and an exit strategy should be arranged in advance.

Conclusion

Keeping this checklist in mind will help you prevent losses to fraud in the future. Yet, shady software development outsourcing providers can always find new schemes. That’s why you should always think critically. At least now you know how to deal with such situations if they happen to you.

More useful articles on Digital Skynet blog: https://digitalskynet.com/blog

Write to us if you need a team of professional developers you can count on!

10 Outsourcing fraud techniques you should watch out for

Artem Kobilinskiy — Fri, 01 Nov 2019 12:41:15 +0000

Software development outsourcing has a wide range of advantages. Cost and time savings are just a few of them. However, it is a risky decision to make for any business. Fraudulent companies constantly invent new ways to scam clients out of their money. There is a common saying, forewarned is forearmed. That’s why this list is essential reading for everyone thinking about outsourcing.

Dishonest Developers

Not all companies have ill intentions in mind. Sometimes they lie about their experience, the number of employees they have or their skill sets. As a result, they begin a project for which they don’t have the necessary resources to finish. After they encounter a roadblock, they start missing deadlines and sometimes vanish entirely.

Background checks are necessary when choosing business partners. It’s possible to fake the resumes and portfolios, so research through various channels. For example, websites like clutch.co have verified testimonials available, that are handy when checking the reputation of the provider.

Down Payment Scams

Wherever upfront costs are a standard practice this technique is widespread. Since many software development models imply down payments are necessary, it’s not that difficult to come across this.

The scam itself is fairly straightforward. You agree on a deal with the partner, pay them some money so they start working, and you never hear from them again. They don’t respond to messages, don’t answer calls, and may even disappear completely from all social media platforms. It’s not always that extreme, sometimes you can even get the “finished” product, but it will almost certainly be of low quality and will miss all deadlines.

If possible, test the team with a smaller project that is less critical. Don’t invest big sums of money into companies that don’t have a proven track record.

Faking the Reports

Inflated numbers in the reports is a common practice for many dishonest firms. It is done in order to demonstrate to the client how much work has been done.

For example, a team has two projects. They spend 6 hours working on one and 2 hours working on the other. The clients of both are then told that the entire day was dedicated to their project. As a result, the company gets more money for the work hours from multiple sources. Sometimes the developers outright lie about what milestones have been reached and what features were completed.

To mitigate that risk for the partners, many teams of developers have adopted more agile methodologies. There is time tracking software that displays not only the work time for each separate project but even provides screenshots and the number of key presses. Never be afraid to negotiate for more transparency.

Upselling

Lack of technical knowledge is often used by companies to sell you products and services that you don’t need. It’s a common tactic across both B2B and B2C markets.

It comes in a variety of ways. Some firms may insist on outstaffing a senior developer for a job that a mid-level specialist can do just as well. Needless to say, the rates you’ll have to pay for the former are higher. Other teams may try to sell you additional features that will take up more development time that someone has to pay for.

To combat that predatory tactic you can get an unbiased independent consultation that will provide a precise estimate of things your project actually requires.

Overestimates

Another way to take advantage of unsuspecting customers is overestimating. They may ask for a larger budget than needed or give themselves more time to work on the project than they actually require.

The problem is that it doesn’t guarantee a better quality of the finished product. Longer times cause productivity to decrease since the developers feel that they can stretch out their work. Don’t forget that you are still paying for these hours.

As mentioned previously, you can hire a company to give you an unbiased estimate. This approach often eliminates the risk of dealing with overestimates.

Unnecessary Spending

This tactic often goes hand in hand with the previous point. The budget for the project is needed to pay for the labor and procure tools necessary for the job. However, some companies may spend this money on things unrelated to the task at hand. For example, expensive hardware upgrades or office renovations.

To mitigate the risk of this happening, you should never underestimate the importance of the planning stages of development. Ask for a detailed breakdown of the costs. You should always know where your money will go.

Intellectual Property Theft

This type of fraud encompasses a variety of other techniques. It can be patent infringement, trademark or copyright violations, disclosure of trade secrets and so on. For many industries, IP can be even more valuable than the physical product.

The damages IP theft can bring to your business are potentially catastrophic. That’s why we have written an article with a deeper look into this topic.

Stolen Ideas

Ideas have value too. They have the potential to develop into complete projects that will bring you profit. Since the ownership of an idea is almost impossible to prove and many companies take advantage of that.

To lower the chances of your ideas being stolen always sign non-disclosure agreements (NDA) before sharing sensitive information. However, you need to make sure it is enforceable in case of a breach.

Information Leaks

It’s important to point out that data leakage can happen without ill intent, but through negligence alone. For example, a device with sensitive information can be stolen or lost. But some companies take full advantage of vulnerable systems and use them for their profit.

All employees that have access to valuable data should be proficient in information security. Only use the secure protocols when transferring data, store encrypted copies on physical drives, and never forget about NDAs. These are the basic preventative measures that every business should adopt.

Identity Theft

When you outsource you have to share some personal information, for example, the details of your bank account. As a result, some fraudulent firms may use it in order to steal money from it or use your data to scam more people. Stolen identities can be used for financial gains or for business interests. For example, faking the testimonials.

Additional security measures need to be in place if you provide your partners with access to databases and CRMs. This can not only endanger your clients but also deem your company as unreliable.

Conclusion

Now that you know what to look out for while outsourcing you can do business in a more secure way. Always take precautions. However, no matter how safe you are there is still a risk of being scammed. That’s why you should know how to deal with outsourcing fraud if it happens to you. Make sure to read our article covering this problem.

More useful articles on Digital Skynet blog: https://digitalskynet.com/blog

Write to us if you need a team of professional developers you can count on!