Technical Debt vs. Misaligned Expectations: Which Costs More? 

Technical Debt vs. Misaligned Expectations: Which Costs More? 

Written by: Monserrat Raya 

Wooden scale with yellow blocks representing technical debt and misaligned expectations imbalance

Introduction:

What Causes Software Project Delays—and What Costs More?

For U.S. tech companies—especially those in Texas—technical debt and misaligned expectations are two silent risks that can compromise delivery when working with nearshore software development teams in Latin America.

We all know that poorly written, unmaintained, or rushed code (technical debt) leads to bugs and cost overruns. But what about when your team builds exactly what was asked—only to realize it wasn’t what was expected?

This article explores:

  • What technical debt really costs
  • How misaligned expectations silently sabotage agile teams
  • Which problem costs more—and why
  • How strategic digital nearshoring can reduce both risks

According to the 2023 State of Agile Report by Digital.ai, 49% of agile teams cite misaligned expectations and unclear requirements as the leading cause of delivery delays. This makes expectation alignment not just a communication issue—but a strategic priority in distributed and nearshore software development environments.

What Technical Debt Really Means in Software Projects

Technical debt refers to the hidden cost of choosing quick, suboptimal solutions in code that must be “paid back” through future refactoring, bug fixes, and maintenance.

Common causes of technical debt:

  • Rushed development for MVPs or deadlines
  • Poor architectural decisions
  • Lack of automated testing
  • Legacy code and developer turnover
  • No time allocated for refactoring

A 2023 study by Beta Breakers reveals that 50% of a project’s software budget is often spent fixing issues after delivery, highlighting how unchecked technical debt becomes a massive drain on engineering resources—and ROI.

How technical debt impacts your project:

  • Slows down development velocity
  • Increases cost of maintenance
  • Introduces fragile, hard-to-scale systems
  • Undermines team morale and innovation

What Are Misaligned Expectations in Agile Software Projects?

Misaligned expectations occur when stakeholders and teams have differing understandings of project goals, timelines, or definitions of completion. This misalignment can lead to inefficiencies, increased costs, and project delays.

How Do Misaligned Expectations Affect Agile Teams?

  • Stakeholders may expect fully production-ready features.
  • Developers might consider «done» as «coded, not tested or deployed.»
  • Product owners could assume a shared understanding of backlog priorities.

Such discrepancies can result in:

  • Endless rework and scope creep.
  • Tension between teams and stakeholders.
  • Delivery of features that don’t align with business needs.
  • Frustration stemming from perceived underperformance.

According to McKinsey, technical debt can consume up to 40% of the value of a company’s technology estate, diverting resources from innovation to maintenance.

Furthermore, companies with mature product and operating models have 60% greater total returns to shareholders, indicating the financial benefits of alignment and effective operating structures.

Illustration representing the contrast between technical debt and misaligned development efforts

Technical Debt vs. Misaligned Expectations: Which Costs More?

Aspect
Technical Debt
Misaligned Expectations
Definition Quick fixes that sacrifice long-term code quality Gaps in understanding between teams and stakeholders
Root Cause Rushed code, lack of testing, no refactoring Unclear goals, vague scope, poor communication
Visibility Measurable via code quality tools and reviews Often invisible until delays or dissatisfaction arise
Impact on Cost 33% loss in developer productivity (Stripe) Up to 60% increase in maintenance and rework (McKinsey)
Agile Risk Medium – usually technical in nature High – especially with distributed or nearshore teams
Cultural Sensitivity Low – mostly code-centric High – often caused by cultural or communication gaps
Prevention Strategy Refactoring, CI/CD, quality standards Frequent alignment sessions, shared backlog, agile onboarding

Real Example: When Misalignment Was Costlier Than Code

A U.S.-based healthtech company nearshoring to Latin America delivered multiple sprints on time and within budget—but friction grew.

The issue?

  • The development team built what the backlog described.
  • The stakeholders expected a production-ready MVP.
  • The client assumed weekly demos; the team delivered monthly updates.

The result: two sprints of rework and loss of trust—not due to technical errors, but due to misaligned expectations.

Related: How to Build Culturally Aligned Nearshore Teams That Actually Work

How Misalignment Increases Technical Debt Risks

Misaligned expectations don’t just create communication problems—they actively accelerate technical debt:

  • Developers build without full product context.
  • Features are rewritten multiple times to meet business needs.
  • Refactoring is skipped to meet misunderstood deadlines.

This loop creates what we call “compounding failure”:
→ Vague goals → Rushed features → Tech debt → Rework → Lower velocity → More misalignment.

How to Prevent Scope Misalignment in Agile Teams

Here are proven strategies for managing expectations with distributed teams and avoiding costly misalignment:

1. Clarify the Definition of «Done»

Ensure it includes design, testing, documentation, and stakeholder approval. A shared definition of done eliminates misunderstandings about the state of a task or feature.

2. Hold Frequent Expectation Check-ins

Especially with nearshore teams, use retrospectives and backlog grooming sessions to re-align priorities. Continuous communication ensures alignment stays intact.

3. Enable Cross-Border Collaboration Tools

Tools like Jira, Confluence, Loom, and Miro help bridge communication gaps across time zones and ensure documentation, visibility, and feedback loops.

4. Invest in Agile and Cultural Onboarding

Help your team understand the why, not just the what—especially in distributed environments. Business context and cultural fluency directly improve collaboration.

Related reading: Overcoming Challenges in Nearshore Development: Tips for Seamless Collaboration

Diagram comparing technical debt with misaligned team objectives in software development

What to Ask a Nearshore Partner Before You Start

Question
Why It Matters
How do you define project “success”? Ensures alignment on goals, scope, and delivery standards
How do you manage technical debt? Shows long-term engineering discipline
Do you onboard developers into our business? Prevents context gaps that lead to misaligned expectations
How are blockers and scope changes communicated? Maintains trust and prevents surprises
What agile frameworks and ceremonies do you use? Confirms process compatibility across teams and cultures

Related reading: Why Nearshore Software Development Makes More Sense Than Ever in 2025

Final Thoughts: Balancing Code and Clarity

So, is technical debt worse than misaligned expectations?

  • If you’re managing an internal agile team, technical debt may be your biggest challenge.
  • But if you’re scaling with distributed or nearshore partners, misaligned expectations can quietly cost more—in time, trust, and delivery quality.

The solution: Combine technical excellence with human alignment—and work with partners who understand both.

Looking for a Nearshore Team That Gets It Right?

Scio, a nearshore software development partner based in Mexico, helps U.S. companies in Austin, Dallas, and beyond build teams that deliver—technically and strategically.

  • English-fluent developers
  • Agile maturity and cultural alignment
  • Proactive communication and shared success metrics

Let’s talk about building a team that fits your goals

FAQ Section

Is technical debt worse than misaligned expectations?

It depends. Technical debt is visible and can be tracked, while misaligned expectations often remain hidden until delivery problems arise—especially in distributed teams.

How do misaligned expectations affect agile projects?

They cause rework, delays, scope creep, and stakeholder dissatisfaction. Agile depends on shared understanding—when that breaks, delivery quality drops.

What causes software project delays most often?

According to The Standish Group, unclear requirements and communication failures are top causes—more than technical execution.

How do you prevent misalignment in distributed teams?

Use shared collaboration tools, define «done» clearly, hold regular expectation check-ins, and provide both agile and cultural onboarding to all team members.

Scrum vs. EOS: How Scio is Evaluating EOS to Complement Our Agile Expertise 

Scrum vs. EOS: How Scio is Evaluating EOS to Complement Our Agile Expertise 

Written by: Adolfo Cruz – 

Scrum vs. EOS: How Scio is Evaluating EOS to Complement Our Agile Expertise

At Scio, we have used Scrum to execute software development projects for over 10 years, refining our approach and delivering high-quality solutions through agile methodologies. Scrum has been instrumental in helping us manage projects efficiently, ensuring adaptability, continuous improvement, and alignment with client needs.

As we look toward the next 10 years, we recognize the need for a complementary framework that helps us reinforce our business strategy, scale effectively, and maintain alignment across all teams. This is why we are evaluating the Entrepreneurial Operating System (EOS) as a potential addition to our operational toolkit. EOS offers a structured business framework that can provide clarity in vision, enhance leadership alignment, and drive long-term growth.

What is Scrum?

Scrum is an agile project management framework designed for iterative product development. It helps teams break down complex projects into Sprints (short, time-boxed iterations) and enables continuous improvement through frequent feedback loops.

Key Components of Scrum:

 

  • Roles: Product Owner, Scrum Master, Development Team
  • Artifacts: Product Backlog, Sprint Backlog, Increment
  • Meetings: Sprint Planning, Daily Standup, Sprint Review, Sprint Retrospective
  • Cadence: Iterations of 1-4 weeks (Sprints)
  • Goal: Deliver working software efficiently through iterative cycles
What is EOS?

What is EOS?

EOS is a business operating system designed to help organizations gain clarity, alignment, and traction in executing their long-term vision. It provides a structured approach to defining a company’s purpose, setting goals, and ensuring accountability across all departments.

Key Components of EOS:

 

  • Vision: Defined in the Vision/Traction Organizer (V/TO)
  • People: Right People, Right Seats (People Analyzer)
  • Data: Scorecard to track key metrics
  • Issues: Identifying and solving business challenges
  • Process: Documenting and standardizing key business workflows
  • Traction: Quarterly Rocks (90-day goals) and Level 10 Meetings
What is EOS?

Why Scio is Considering EOS

While Scrum has been invaluable in managing project execution, we recognize that as we scale our business, we need a structured framework to align our vision, strengthen leadership accountability, and ensure strategic growth. EOS provides a long-term operational structure that complements our agile execution methodology.

1. Aligning EOS Rocks with Scrum Sprints

  • EOS Rocks (90-day priorities) can guide high-level business objectives, while Scrum Sprint Goals help break them down into actionable development tasks.
  • Leadership sets Rocks at the company level, and Scrum teams translate them into Sprint deliverables.

2. Using Level 10 Meetings for Business Strategy, Daily Standups for Execution

  • Scrum Standups focus on immediate project tasks and execution.
  • Level 10 Meetings provide leadership with a structured way to track company-wide priorities and resolve high-level business issues.

3. Tracking Progress with EOS Scorecards & Scrum Burndown Charts

  • EOS Scorecards will help us measure and track company-wide KPIs.
  • Scrum teams will continue using Burndown Charts to measure Sprint progress.

4. Applying EOS People Principles to Scrum Teams

  • EOS’s Right People, Right Seats framework will help ensure Scrum teams remain well-structured with the right talent.
  • People Analyzer can assist in assessing team alignment with company values and culture.
The Road Ahead for Scio

The Road Ahead for Scio

As we explore the integration of EOS, our goal is not to replace Scrum but to enhance our business execution at a leadership level. Scrum will continue to drive project-level agility, while EOS will provide a long-term strategy to manage growth, accountability, and business alignment.

By integrating EOS at the business level and Scrum at the project level, we believe Scio can achieve even stronger execution, scalability, and alignment—ensuring we remain at the forefront of agile software development while preparing for the future.

We’re excited about this journey and will continue to refine our approach as we implement EOS principles. If you’re also using Scrum and considering EOS, let’s connect and share insights!

Adolfo Cruz - PMO Director

Adolfo Cruz

PMO Director

Making Daily Scrums Enjoyable: Injecting Fun and Insights for Your Team

Making Daily Scrums Enjoyable: Injecting Fun and Insights for Your Team

Written by: Adolfo Cruz – 

Making Daily Scrums Enjoyable: Injecting Fun and Insights for Your Team

Daily Scrums are an essential part of Agile project management—they help teams sync up, identify blockers, and adjust priorities. However, it’s easy for these daily check-ins to become mundane and repetitive, losing the energy and engagement they are meant to foster. If your Daily Scrums are starting to feel more like a chore than a productive, energizing meeting, it’s time to make some changes. Here’s how you can transform your scrums into sessions that are not only informative but also enjoyable for everyone involved.

1. Add a Fun Start

Start on a light-hearted note to break the ice and lift everyone’s mood. Try incorporating quick icebreakers to help team members feel connected, such as:

  • Random Fun Question: Begin with a question like, “What’s the most interesting thing you learned this week?” or “If you could have any superpower today, what would it be?”
  • Rotating Facilitator: Let someone different lead each day. This rotation keeps the meeting dynamic, encourages participation, and allows everyone to bring their own flavor to the Scrum.

2. Shake Up the Format

Sometimes, the simple act of changing how you hold the meeting can add some much-needed excitement. Consider these alternative formats:

  • Walk-and-Talk: Hold the Scrum while taking a walk, either virtually (for remote teams) or in person. The change of scenery and movement can boost energy levels.
  • Theme Days: Occasionally, hold themed stand-ups. Encourage team members to share updates like characters from a favorite movie or even use funny props. Themes can make the stand-up more memorable and spark creativity.
Focus on Impact, Not Just Tasks

3. Focus on Impact, Not Just Tasks

Move beyond the standard questions (“What did you do yesterday?”) and make discussions more impactful:

  • Shift the Focus: Instead of asking what tasks were completed, try questions like, “What’s the most valuable thing you’ll work on today?” or “What’s one thing that could make a huge difference if we solve it today?”
  • Celebrate Small Wins: Take a moment to recognize individual or team accomplishments from the previous day. Highlighting wins helps create a positive atmosphere and boosts morale.

4. Productive Blocker Discussions

Instead of simply stating blockers, turn it into an opportunity for meaningful problem-solving:

  • Blocker Bingo: Create a playful “Bingo” card with recurring blockers. As the team works together to eliminate these blockers, mark them off—it adds a touch of fun and motivates the team to tackle obstacles.
  • Action-focused: Ensure blockers aren’t just noted but acted on. Assign a quick follow-up plan for each blocker to keep progress going.

5. Keep It Timeboxed and Energizing

Scrums should be short and to the point, but that doesn’t mean they can’t be fun:

  • Countdown Timer: Use a countdown timer with sound effects to add urgency. This helps keep everyone focused and adds a playful sense of pressure.
  • Music to Gather: Play an upbeat song as everyone joins the meeting—this small touch can set a positive tone for the rest of the Scrum.
Change Up Dynamics Occasionally

6. Change Up Dynamics Occasionally

Introducing variety in the Scrum’s structure can help fight monotony and spark fresh thinking:
Silent Scrum: Once a week, try a written Scrum where everyone posts their updates in a shared document or messaging channel. This can offer a different perspective and give people a break from speaking.
Pair Sharing: Break into pairs for updates and come back together to share highlights. This variation promotes deeper discussions between team members and creates a more intimate space for collaboration.

7. Encourage Recognition and Gratitude

Acknowledging each other’s efforts goes a long way in creating a positive team culture:

  • Kudos Round: Dedicate a minute for team members to give shout-outs to others for help, great work, or going the extra mile.
  • Highlight Team Achievements: Show progress using visuals, like a chart or dashboard. This helps everyone see how their work fits into the bigger picture and fosters a sense of shared purpose.

8. Prevent Fatigue

Avoid routine fatigue by being mindful of how frequently and strictly you conduct scrums:

  • Skip Days: Consider replacing one day a week with an async update, especially when the team is in a smooth flow and less in need of daily verbal check-ins.
  • Shorten Updates: Encourage concise updates, focusing only on what’s necessary. This helps maintain momentum and prevents the meeting from dragging on.

9. Gather Feedback and Adapt

Regularly check in with your team to see what’s working and what isn’t:

  • Feedback Fridays: Set aside time at the end of the week to gather thoughts on how the Scrum process can be improved.
  • Anonymous Feedback: Use a survey tool to gather suggestions—this can help you get honest input, especially if team members are hesitant to speak up.
Conclusion

Conclusion

Daily Scrums are intended to be a powerful tool for team alignment, but they don’t have to be monotonous. By incorporating fun elements, adjusting the format, and focusing on value-driven discussions, you can make these daily meetings something your team looks forward to. A bit of creativity and openness to change can transform the Scrum from a routine check-in into an energizing collaboration session that brings out the best in everyone.

Try experimenting with some of these ideas and see what resonates best with your team. Who knows, you might make Daily Scrums the highlight of the day!

Adolfo Cruz - PMO Director

Adolfo Cruz

PMO Director

Agile Austin Takeaways: Refining Your Software Development Approach for Mid-Sized Tech Companies

Agile Austin Takeaways: Refining Your Software Development Approach for Mid-Sized Tech Companies

As a nearshore software development staff augmentation company with over 20 years of experience, Scio understands the challenges faced by mid-sized tech companies (30-200 employees) in the software development industry (SaaS, Mobile, or On-premises). Recently, our team participated in the Agile Austin virtual event, a valuable forum fostering collaboration and knowledge sharing within the Agile community. This experience provided us with fresh perspectives directly applicable to your team’s success. 

Shifting the Agile Paradigm: From Methodology to Mindset 

One key takeaway emphasized the importance of viewing Agile as a core company principle, rather than simply a defined methodology. Think of it as a cultural shift, not just a process change. Agile principles such as iterative development, continuous improvement, and collaboration become ingrained in your team’s DNA. One of our Scio Project Manager, Jesús, found a quote from Bob Galen, particularly resonant:  

«While intricate solutions hold a certain allure, their complexity can present risks.»  

Bob Galen, KAA 2024 Keynote Speaker

This sentiment underscores the crucial role of resilience within Agile environments. Complex methodologies can be cumbersome and hinder adaptability, a key strength of Agile. 

Jesús also presented the concept of a «help-o-meter» – a tool that fosters a growth culture by tracking instances of offering and seeking assistance within the development team. This straightforward practice not only strengthens team dynamics and promotes a collaborative spirit, but also encourages knowledge sharing and continuous learning. 

Prioritization and Psychological Safety: Cornerstones of Effective Agile Teams 

Another member of our team, Angeles, Scio Business Analyst, highlighted the significance of prioritization within Agile teams. By clearly identifying the features that deliver the most value to your customers, you ensure a laser focus on what truly matters. However, the benefits of Agile extend beyond project management frameworks and feature sets. Establishing a culture of psychological safety empowers team members to openly communicate concerns, take calculated risks, and contribute their best ideas. This fosters a more creative and innovative environment, leading to better problem-solving and ultimately, a more successful product. Additionally, tracking Key Performance Indicators (KPIs) allows for data-driven decision-making and facilitates continuous progress. Regularly measuring progress against defined goals allows you to identify areas for improvement and adapt your approach as needed. 

Building Successful Agile Teams: Communication, Collaboration, Adaptability 

The Agile approach thrives on effective communication, collaboration, and adaptability. Daily scrums become a platform for active participation, transparency, and shared goal alignment. Team members openly discuss progress, identify roadblocks, and work together to find solutions. This fosters a sense of ownership and accountability, leading to a more engaged and productive team. By nurturing these core elements, Agile teams thrive in a constantly evolving environment and consistently deliver value to your customers. 

Scio: Your Partner in Agile Success 

At Scio, we leverage our extensive experience in nearshore software development staff augmentation to help you build successful Agile teams. We provide highly skilled and experienced developers who seamlessly integrate into your existing teams, fostering an Agile environment that drives results. Our dedication to clear communication, collaboration, and cultural understanding ensures a smooth transition and a successful partnership. 

Contact Scio today to discuss your specific needs and explore how we can help you build a high-performing Agile team that consistently delivers value to your customers. 

Scaling New Heights: Lessons in Scrum Methodology Learned from Climbing Mountains

Scaling New Heights: Lessons in Scrum Methodology Learned from Climbing Mountains

Curated by: Rod Aburto

In the world of project management, the Scrum methodology has proven to be a powerful framework for agile and iterative development. But what if I told you that some of the most valuable lessons I’ve learned about Scrum didn’t come from a conference room or a software development project, but rather from climbing mountains? In this blog post, I will share the unexpected parallels between Scrum methodology and mountaineering, unveiling the valuable insights gained from conquering peaks and navigating the challenges along the way.

The craftsmanship of software development 4

1. Embracing Iteractive Progress 

In Scrum, iterative development lies at the core, breaking down complex projects into manageable increments. Similarly, climbing mountains requires breaking the journey into smaller, achievable goals. Just as Scrum teams focus on completing sprints and delivering value, mountaineers concentrate on reaching intermediate points and base camps before progressing further. Embracing iterative progress allows both Scrum teams and climbers to maintain momentum, assess risks, and make necessary adjustments along the way.

2. Team Collaboration and Communication: 

Scrum methodology thrives on collaboration and effective communication within cross-functional teams. In mountaineering, successful ascents rely heavily on teamwork and clear communication between climbers. Just as Scrum teams hold daily stand-up meetings, mountaineers regularly gather to discuss routes, conditions, and strategies. Both settings emphasize the importance of sharing information, addressing challenges collectively, and maintaining a cohesive team spirit.

The craftsmanship of software development 4

3. Continuous Adaptation and Risk Management:

Mountaineers face ever-changing conditions and unexpected obstacles on their journey to the summit. Similarly, Scrum teams must adapt to evolving requirements, unforeseen challenges, and shifting priorities. Both endeavors require effective risk management strategies, anticipating potential hurdles, and adjusting plans accordingly. By embracing flexibility, Scrum teams and mountaineers navigate uncertainties and make informed decisions to maximize their chances of success.

4. Iterative Feedback and Learning:

Scrum methodology encourages frequent feedback loops, enabling teams to reflect, learn, and improve their processes continuously. Similarly, mountaineers rely on post-climb evaluations and

debriefings to analyze their performance and identify areas for growth. Both Scrum teams and climbers value constructive feedback as a catalyst for continuous learning, enabling them to refine their approaches and optimize their future endeavors.

The craftsmanship of software development 4

5. Focus on Incremental Goals:

Scrum methodology emphasizes setting achievable goals for each sprint, ensuring incremental progress towards the overall project vision. Similarly, mountaineers focus on reaching intermediate waypoints, base camps, or notable landmarks before advancing further. Breaking down the journey into smaller, attainable goals fosters motivation, builds confidence, and provides a sense of accomplishment. It also allows for a reassessment of progress and priorities at each milestone.

6. Resilience and Perseverance:

Climbing mountains and implementing Scrum methodologies both demand resilience and perseverance. Scaling steep slopes or navigating treacherous terrains requires physical and mental strength, as does tackling complex software projects. In both cases, setbacks and challenges are inevitable. However, it is the ability to persevere, adapt, and overcome obstacles that leads to eventual success.

The craftsmanship of software development 4

Conclusion:

As surprising as it may seem, the lessons I’ve learned about Scrum methodology from climbing mountains have been invaluable. The parallel experiences of embracing iterative progress, fostering team collaboration and communication, adapting to risks and uncertainties, learning from feedback, focusing on incremental goals, and demonstrating resilience and perseverance are common to both endeavors. By drawing inspiration from mountaineering, we can enhance our understanding and application of Scrum principles, injecting a fresh perspective into agile project management. So, whether you find yourself in a Scrum team or planning your next mountaineering adventure, remember that the journey itself holds valuable insights that can elevate your performance and propel you towards greater heights of success.

The Value Of Team Flexibility During Challenging Times: Why Is Dynamic Staffing Better?

The Value Of Team Flexibility During Challenging Times: Why Is Dynamic Staffing Better?

Curated by: Sergio A. Martínez

Even if it looks otherwise, the software industry is not immune to the effects of recession cycles. During times when spending decreases and businesses become more cost-conscious, budgets for software development projects often suffer, having a significant impact on companies that rely on project-based revenue streams and their employees. And as we’ve seen so far in 2023, an unstable global economy has affected the Technology sector like never before, pushing software businesses today to navigate a very difficult situation where taking the necessary steps to shield themselves from the worst consequences of an economic downturn is critical. 

The Value Of Team Flexibility During Challenging Times: Why Is Dynamic Staffing Better?

Above all else, a very effective approach for software companies is to be agile and create systems and processes that enable them to adjust staff levels quickly when needed, focusing on minimizing disruption to any ongoing development project. After all, building a flexible team structure with both full-time and contract workers who can respond to current demands ensures that a company remains fully staffed, and resources remain able to be scaled up or down according to the current economic needs of the organization. And implementing effective training methods play an important role here too, guaranteeing that everyone is equipped with the necessary skills to bring a positive outcome for any project even if the team composition has changed. In other words, readiness is key when it comes to dealing with financial unpredictability and having a versatile workforce ready at all times is a big part of this success.

However, in tight budgets, companies often have to make tough choices, cutting back on staff and resources, making it difficult to build adequate teams with the right combination of skills. And if this situation continues for a long period, it can become increasingly tough for teams to maintain their momentum and stay on top of any new trends entering the market, with current staff members often having to take a bigger workload to fill in gaps that larger teams would otherwise occupy. It’s pretty likely that, during economic downturns, a lot of software organizations find themselves limited in the available talent they can hire. 

With this in mind, having the ability to scale the size of a software team can be an invaluable asset for any company. Such teams can come together quickly when needed, enabling companies to pivot and take on unique and complex projects that would otherwise be too difficult to tackle. At the same time, this approach allows developers to focus on specific tasks with laser-like precision, resulting in an improved project and output. So, during economically-uncertain times, the most successful software companies can decide about their ideal team size, as opposed to teams limited by what’s available at any given moment. But what is the best option to maintain flexibility in tough times? What choices are available?

Thinking outside the box

The Value Of Team Flexibility During Challenging Times: Why Is Dynamic Staffing Better?

In recent years, outsourcing software development has become increasingly popular thanks to the economic uncertainty that has prevailed since the start of the pandemic. Outsourcing allows organizations to take lesser risks, reduce operational costs and, more importantly, attain the necessary flexibility to scale staff up or down depending on the needs of a project, without the cost and commitment associated with hiring additional employees or establishing new departments in the company. Furthermore, it can be easier to forecast expenses when using an outside partner because project costs are fixed and known in advance, as long as a quality vendor is chosen. With companies now looking to stretch their budgets as much as possible to compete during every recession cycle, outsourcing provides an easy option for them to cut costs simply by working with external partners that specialize in the desired tasks. 

However, not all types of outsourcing are equal; the specific service must be tailored to match the individual circumstances of a company. Offshore outsourcing, for example, can offer low-cost highly-skilled coding, but working with remote locations (often in different continents) imposes delays, language barriers, and different cultural expectations that can lead to negative outcomes. On the other hand, more localized models such as freelancing might provide heightened responsiveness at somewhat higher rates but with less potential to scale up quickly which, as we already mentioned, is of utmost importance during a recession. 

This is where a Nearshore partnership model comes in. By partnering with a Nearshore such as Scio, software companies can benefit from an increased resource pool compared to employing an onsite team, providing additional strategic advantages. Things like access to skilled developers and IT engineers, expanded working hours due to the similar time zones, as well as the excellent user experience achieved by having a more diverse staff are some examples of advantages that companies can get to maintain their competitive edge in difficult economic times, thus allowing them to succeed despite the challenging environment. This is especially true when it comes to the aforementioned flexibility needed to keep the momentum of a project with very specific requirements.

The core benefit of working with a Nearshore partner, in short, is that team size can be dynamically adjusted to fit the specific needs of any project, which eliminates the problem of needing to find and build larger than necessary teams in-house. This means far less time wasted on locating and planning hiring cycles due to sudden additions or deletions from a team, and the ability to rapidly expand or contract their workforce without incurring the traditional drawbacks that come with making similar adjustments. And the ease of access to overseas markets, coupled with localized teams, means businesses can quickly scale up or down without worrying about talent availability, high attrition rates due to tedious onboarding processes, and language barrier issues. With Nearshore teams available at short notice, companies no longer have to strain their resources trying to keep track of volatile demands, enabling organizations to be better equipped to take full advantage of their resource expenditure.

But what if team flexibility is not enough?

The Value Of Team Flexibility During Challenging Times: Why Is Dynamic Staffing Better?

In an economic cycle of growth and recession, Technology companies must do their part to protect themselves, and one of the biggest challenges is staying on top of trends, as consumer needs in the software industry are constantly changing and evolving. Adopting or developing new products or services that can help grow their business during both times of growth and recession should play into their strategic planning, of course, and companies should be open to making changes in their business practices, automating redundant processes and streamlining tasks where possible, making adjustments to their product lines if those become over-saturated or if more cost-effective alternatives are available. 

And embracing new technologies should never be out of the question, especially with a trustworthy Nearshore partner at your side, which could help increase productivity by taking care of development and training staff on the relevant skills you need. Identifying innovative new ideas for existing services can also help generate new sources of revenue and put the company in a better position when the economy recovers. Staying diversified by offering services across multiple industries can provide stability even in times of economic uncertainty. Lastly, maintaining strong communication with customers allows you to anticipate their needs and prepare for whatever economic situation may arise while also building consumer loyalty which is beneficial both during times of growth and recession.

In short, the world economy is often subject to unforeseen changes, from threats of recession to pandemics. Software organizations must be prepared when unpredictable times arise, no matter how much the market fluctuates. Taking every precaution possible when anticipating economic hardship ensures that a business or organization can weather any storm, making changes as necessary, such as adopting a more flexible approach to staffing, to stay up-to-date on industry trends. Preparation leads to success, so software development organizations must take every precaution possible if faced with an economically trying year to remain strong during the entire season.

The Key Takeaways

  • Historically speaking, the tech industry has remained strong in the face of recessions, but that might not be true anymore in 2023.
  • To weather these economically-uncertain times, one of the key approaches is having flexibility in your staff, enabling you to increase or decrease team sizes as the situation demands.
  • To this end, partnering with a Nearshore company, instead of building on-site teams, is the best approach to accomplish this, enabling a company to access talent as a project and the economy permits.
  • However, secondary plans, like having a long-term strategy, keeping on top of trends, and being smart about your development partners, might also help to armor a software organization against any economic downturn.