The 5 Variables of Project Estimation

The 5 Variables of Project Estimation

Agile Methodology, Project Management

Written by: Scio Team 

World map showing cybersecurity locks symbolizing the global connection between nearshore and offshore teams.
Our thoughts on this subject come from practical experience. Companies who come to Scio with their projects often come with a multi-megabyte PDF, UML diagrams, and a list of specifications. “Give us a firm, fixed price for getting this project done by June 2nd at 2pm Eastern,” they say. Their basic idea is:
  • Software projects have a much less than enviable record of finishing over budget and way over the estimated completion date – we’ll set those so they can’t creep.
  • Software outsourcing is risky so we’ll limit our risk by agreeing to a cost and timeframe we can live with and possibly tag onto some event. “Shoot for the June trade show so we have a shiny new product to sell,” Marketing begs.
  • We don’t have the resources to do the project in house, but we don’t trust any outsourcing group – so we’ll rope them in with a fixed fee and time and put all the risk on them.
  • We know perfectly well what our product needs to be. If we don’t nail this down, we won’t get what we need for the price we can afford.
The result of this thinking generally speaking is:

Flaming Disaster!

Why? Their basic instinct wasn’t wrong. Software projects do fail to meet their targets with astonishing regularity. They were just trying to limit their exposure. What is happening? There are five intrinsically linked factors in estimating software product development projects:
  • The Total Elapsed Time expected to produce the specified product.
  • The Effort required to produce the product.
  • The Cost the client expects to expend.
  • The Resources required for the project – their skills and availability.
  • The Specifications for the product; the features, functionality and user experience.
Comparative Table: Project Estimation Variables
Variable Main Goal Common Risk Mitigation Strategy
Time Deliver within expected deadlines. Artificial dates and poor scope alignment. Base timelines on real effort estimates.
Effort Allocate realistic development hours. Underestimating iteration workload. Include contingency buffers and retrospectives.
Cost Stay within budget without compromising quality. Tight budgets ignoring real resource needs. Use incremental milestones and ROI checkpoints.
Specifications Deliver accurate functionality. Scope creep or unclear requirements. Refine continuously with client feedback loops.
Resources Assign skilled talent at the right time. Mismatch in skills or team availability. Use flexible nearshore teams for scalability.
 In general terms, what clients are trying to do is set a “target.” In project management, the general assumption is you can set any one of the five factors as a target for a project, but when you do, you need to let the other four float to where they need to go to reach the target. So if you set cost, you need to vary time, specifications, effort and/or resources to reach a mix that will achieve the project goals within the target cost. Instead, clients set two or more factors in an attempt to “hold the line” on all the other factors. They spent a lot of time on those specifications. They need them all!  But in fact, setting more than one factor as fixed creates an almost impossible tension among the remaining factors that almost assures the project will fail to meet its goals. There are no levers left to control the project! It starts out with the best of intentions, but with two or more factors fixed, any change in circumstances during the project creates an imbalance that cannot be corrected with the remaining factors. Why does this happen? Stepping away from our example of setting time and cost as the fixed factors – think about each of the factors individually and the impact they have on the project:
Managing software project deadlines with realistic time estimation strategies
Accurate time estimation helps avoid artificial pressure and aligns teams with achievable delivery goals.

Time: Managing Deadlines Without Artificial Pressure

The elapsed project time from start to finish is always different than the total effort applied. Time is measured by a calendar start to finish. Conversely, the effort is the sum of all the time expended on a project by the assigned resources. Total time is never equal to the total effort unless only one resource is assigned, full time. Software development projects rarely finish on time. Unplanned specification changes, unexpected risks, and resource changes always build up over time and eventually result in a project that is both over budget and beyond the allocated time. Time to completion can only be estimated and controlled well over short periods. As the time period considered in an estimate increases, the accuracy begins to degrade because of variations in the expected effort, the depth and complexity of the specifications involved, the skills and availability of the resources required and the limitations an assumed total cost puts on the project. It should also be understood that time to project completion is rarely scoped as a direct result of estimating the effort required. More often, “artificial completion dates” evolve from a point in a product marketing plan, the current product position, and/or customer demands. When this happens, there is usually some consideration of project scope but is rarely enough to address the situation that arises from not first doing a straight-forward evaluation of the effort required to complete the specified product.

Effort: Estimating Workload and Avoiding the Domino Effect

The accurate estimation of effort is key to successful software project costing and setting a realistic expected time to completion. In practice however, the amount of effort required to actually produce each bit of application functionality always varies from estimates. The more detailed and contingency bound the estimate becomes, the more likely it is to be wrong. Because of this, past experience and general effort assumptions are used across a project estimation, in the belief that in the final outcome everything will average out. Of course, the reverse is also true; averages can never address all risks in an individual project. So, while averages are a practical approach to project estimation, they cannot yield a project quote that can be fixed to a specific figure without risk. In this situation, risk buffers for variations in specifications and resources are recommended for effort estimation, especially in Agile development methodologies where development iterations are “timeboxed.” Timeboxing iterations means variations in the effort will generally cause functionality to be pushed ahead to the next iteration and a “snowball effect” can be produced where the amount of effort required for each iteration increases incrementally beyond estimates over time. If buffers were used, more projects would reach their estimates, but in the drive to reach a more competitive price, they are rarely employed when using assumed effort to arrive at a fixed cost. This results in a very narrow margin for error in effort estimation. In addition, the amount of time required to reach project completion is not directly related to the number of resources available concurrently. Determining effort depends on an experienced assessment of an efficient team size for the project and the methodologies used. Increasing the number of resources and concurrent tasks beyond a certain point increases coordination and communication overhead exponentially. Increased team size tends to increase errors, oversight, and testing cycles without a cost-effective increase in total output. Estimates of effort required tend to be assessed from a straightforward analysis of specifications. During projects, the actual effort required frequently increases beyond estimates because of “fixes” required to bridge the gap between specifications and the product as realized in development. In addition, the elapsed time required for QA by the client team is often underestimated and can result in either idling development or moving ahead with incorrect assumptions and subsequent rework.

According to the CHAOS Report summary by The Story, only 31% of software projects are considered successful—delivered on time, on budget, and with all required features. Around 50% are challenged, and 19% fail completely, highlighting why accurate effort estimation is one of the most critical aspects of project management.

Analyzing software project budget and cost estimation in agile development
Tight budgets often ignore resource realities. Smart estimation connects cost with quality and delivery.

Cost: When Budget Targets Clash with Project Reality

Software development projects almost never finish under their expected cost from the point of view of clients. A few finishes at the client’s target cost, but generally only at the expense of other project factors. As a result, when projects do cost what was originally expected, the product is often a failure from an end-user point of view. For clients, the target project cost is generally a function of:
  • Expected product price and the desired return on investment that could be produced by an estimated number of paying customers in a reasonable period of time. In other words, a string of dependencies that may have little basis in the final analysis.
  • Available funds and cash flow limitations.
  • Experience with “similar projects” – However, only rarely do estimates based this way actually works out to be similar in the effort required.
Target cost is never or only rarely based on:
  • The steps and effort actually required scope and develop a product that is a successful market fit.
  • Small, incremental steps that can be estimated with a reasonable chance of success.

Specifications: The Hidden Triggers Behind Scope Creep

Specifications are almost always assumed to be a known and set factor in fixed cost projects. They are used as the basis for effort estimation and effort estimation ultimately determines the quoted cost. Clients generally have a basic expectation that their specifications do not need to be varied from substantially to produce the desired product at the specified cost. Clients often expend great amounts of time producing specifications for bid to assure they will be complete and assumed to be fixed. But in fact, not assuming specifications will need to be varied as over the course of a project to meet fixed cost results in a continuous tension between the effort required, the scope remaining and the time remaining on the project clock. Most fixed cost projects have intentionally limited options to change scope. Instead, limiting scope change by not providing workable options increases the risk the project will not reach the desired goals when the actual product is assessed by end-users. Software development requirements can never be complete enough or communicated well enough to ensure understanding and success. Errors in interpretation, over-broad and over-complex specifications result in many “fixes” that are not related to actual code errors by the development team. These fixes are actually elaborations or “clarifications” of project specifications, but in most projects, they are assumed to be “bug fixes” in the process of development, testing and QA. In practice, this means the actual functionality works as specified but the implementation is not as desired by the client. Fixes of this type generally add to effort and resource allocations without the assumption they should impact specifications, time or cost. Software development project requirements are by their nature improved by the discovery on the part of both the development team and the client team during analysis and development. In the course of normal work, discovery exposes:
  • More depth than expected (scope creep).
  • Different aims and approaches from the client and end-user feedback or unexpected insight from seeing the product as it develops.
  • Technical limitations or alternative approaches that change requirements, the effort and time required.
  • In most software development projects, there are no assumptions or procedures to handle specification discovery and subsequent changes. This results in many variations from project estimates and is a significant factor in project overruns.
Software resource planning dashboard for balancing skills, teams, and availability
Smart resource allocation ensures the right skills are available at the right time for every sprint.

Resources: Balancing Talent, Skills, and Availability

Resource management is a function of having the right skills available when needed for a specific task in a project. With limited resources and funds, this is a difficult task for software development companies. Both internally and externally, software development companies have an ongoing need to balance new projects against support, maintenance, and enhancement of existing applications. Companies need to decide the level of investment they will put into new technology. Using time from existing work to move to new technology skills is a difficult and expensive proposition. Recruiting for internal resources is a long, expensive process that often fails to yield dependable, trained resources in the long run. These factors are the leading reasons clients consider outsourcing. But they are also a factor in outsourced projects themselves because, at some level, the client team becomes involved directly with the outsourced team and the results of team resource management. The management of new software development projects is difficult by itself. Because of the time and risks involved in recruiting resources with appropriate skills and knowledge, client project/product managers often don’t have a good understanding of the technology and limitations in the project they are managing. In this situation, outsourcing software development often leads to a confrontational relationship where the client team feels they have lost control and don’t understand the choices the outsourced development team has made or what effort is being applied to produce deliverables. They don’t understand that the estimation for time to completion was figured against assumed effort but the accuracy of that assumption varies according to specification clarity, resource skills, and availability.
For technology leaders exploring smarter ways to manage skill gaps and scale engineering capacity, check out our blog Scaling Engineering Teams with a Hybrid Model: In-house + Outsourced. It explains how combining internal knowledge with nearshore talent can balance resources effectively and reduce project estimation risks.

In Summary

Variations in the five factors during a software development project leads to:
  • Defensive reactions to clarifications and changes between the client and the development team.
  • Situations, where the actual effort in the given time varied depending on specification accuracy and resource skills and availability, lead to confrontations. When the time to completion is figured for a fixed cost, it is generally figured against the assumed effort. Without assumptions for what controls are available to deal with variation, the confrontation continues to simmer throughout the life of the project.
  • Lost opportunities for a partnership-like relationship of shared risk and reward.
The solution could be as simple as not setting more than one factor as fixed, but in practice that is hard to do for many projects. What is really needed is a consultive framework for communication and decision making that is informed by real-time reporting during the project and the collaborative resolution of issues to reach the client’s goals. It’s easy to say, but it takes understanding, planning, and agreement to accomplish. We’re constantly working on this paradigm every day – it’s challenging and rewarding. What’s your experience? How do you hold the line? What controls do you have realistically? Have you recognized the five factors in your project estimation process formally? I’d love to hear your thoughts…

FAQs: Project Estimation Essentials

  • Because multiple key variables—time, cost, and scope—are often fixed simultaneously at the start. This leaves no operational flexibility to adapt quickly when requirements inevitably evolve or technical complexities emerge.

  • By operating in real-time alignment with your internal team, they facilitate seamless sharing of performance metrics and velocity data. This minimal friction enables rapid adaptation to scope changes, making subsequent estimates far more accurate.

  • Effort estimation. It determines the cost, the duration, and the necessary team structure. Misjudging the effort required for a task is the primary cause of cascading overruns across all other project variables.

  • Agile manages estimation through **iterative timeboxing** (sprints), **backlog grooming**, and continuous feedback loops. These practices constantly reduce uncertainty by validating estimates against real work output, improving predictability over time.

From Maintenance to Innovation: Addressing IT and Software Development Challenges in Modern Enterprises 

From Maintenance to Innovation: Addressing IT and Software Development Challenges in Modern Enterprises 

Data Management Software and Services, High-Performance Collaboration, Outsourced Engineering Team, Project Management, Strategic Digital Nearshoring

Written by: Luis Aburto 

CTO planning an IT modernization roadmap using a chess-strategy metaphor, shifting from reactive maintenance to innovation with a nearshore partner.

Introduction

In my conversations with CTOs, CIOs, and Software Development Leaders across various industries, certain recurring themes have emerged about the challenges these leaders face. Managing legacy systems, resource constraints, and rising expectations often leaves teams stuck in reactive maintenance instead of driving innovation. Overcoming these obstacles can pave the way for strategic initiatives that transform not only IT operations but the entire organization.

This blog delves into the most pressing challenges IT leaders face and offers practical strategies to address them. By embracing innovative solutions, organizations can position their IT teams for long-term success and growth.

1. Legacy Systems: The Hidden Roadblock to Innovation

Legacy systems, while once the backbone of operations, now represent a significant challenge. These systems often lack proper documentation, rely on outdated technology stacks, and are difficult to integrate with modern platforms. This creates bottlenecks that hinder agility, scalability, and the ability to innovate.

Solution: Migrating to modern platforms—such as cloud-based microservices architectures—can unlock operational efficiencies and enable new capabilities. Collaborating with a partner experienced in legacy system modernization ensures a smoother transition. A phased migration approach, focusing first on high-impact areas, can reduce risks and prevent operational disruptions. Additionally, adopting automated tools for data migration and validation can streamline the process further.

2. Maintenance Overhead: Shifting Focus to Strategic Initiatives

Internal IT teams often find themselves consumed by routine maintenance tasks. This leaves little bandwidth for high-value projects like AI integration, personalization, or mobile app development. Teams become reactive, addressing issues as they arise instead of proactively driving improvements. These constraints limit the team’s capacity to focus on strategic objectives that could drive significant business growth.

Solution: Outsourcing systems maintenance to a trusted partner can free up internal resources for mission-critical projects. For instance, Scio’s nearshore software engineering teams seamlessly integrate with in-house staff, ensuring continuity while enhancing capacity. Additionally, creating a project prioritization roadmap can help allocate resources effectively, ensuring that strategic initiatives get the attention they deserve.

3. Mobile App Development: Meeting Modern User Expectations

As mobile applications become central to user engagement, businesses must adopt approaches that balance functionality, cost-efficiency, and scalability. Developing robust mobile apps requires specialized expertise, particularly in navigating frameworks like React Native, Flutter, and native app development for specific platforms.

Solution: Adopting a hybrid approach—leveraging frameworks like Flutter or React Native—can significantly reduce costs without sacrificing performance. Collaborating with seasoned developers ensures that your app aligns with user needs while adhering to timelines and budgets. Incorporating iterative development cycles with regular user feedback can also enhance app usability and adoption rates.

Hand presenting an AI hologram symbolizing practical AI integration—copilots, automation, and analytics—embedded into software delivery.
AI works when tied to real use cases, secure adoption, and teams that ship in U.S. time zones.

4. AI Integration: From Buzzword to Business Impact

Artificial intelligence is no longer a futuristic concept, it is a cornerstone of modern business strategy. From predictive analytics to chatbots and automated workflows, AI can dramatically enhance efficiency and customer engagement. However, its integration often presents challenge es, particularly around selecting the right tools and ensuring seamless adoption. Beyond its strategic impact, AI has emerged as a powerful productivity tool in software development. Platforms like GitHub Copilot can significantly accelerate coding by suggesting snippets, automating repetitive tasks, and even flagging potential errors during development. These tools enable developers to focus on higher-value activities such as architectural decisions and feature innovations. Solution: AI integration requires a clear strategy aligned with business objectives. Begin by identifying specific use cases where AI can deliver measurable value, such as customer support chatbots, automated data analysis, or productivity tools for developers. Partnering with experienced development teams ensures smooth integration and adherence to organizational security protocols. Offering internal training to upskill employees on AI tools can also foster widespread adoption and innovation. Establishing feedback loops for developers using AI tools can further refine their effectiveness, ensuring they align with team workflows and deliver maximum benefits.

5. Data and Security: The Backbone of Digital Transformation

Data management and security remain critical concerns during modernization efforts. Organizations must ensure that their data integration processes are seamless, while also safeguarding sensitive information against breaches. Solution: Establishing well-defined data sharing protocols early in the project lifecycle is key. Automated compliance and validation tools can streamline integration while ensuring adherence to industry regulations. Selecting a partner who prioritizes robust security measures—including encryption, multi-factor authentication, and regular audits—further minimizes risks. Additionally, investing in tools that monitor and manage data access can enhance transparency and security.

6. Shifting Strategic Focus and Building a Culture of Innovation

Today’s IT teams are being asked to pivot from traditional operational roles to driving innovation within the organization. Fostering a culture of innovation within IT teams is essential for long-term success. However, balancing operational demands with strategic priorities often strains resources that have limited bandwidth for experimenting with new technologies like AI and machine learning, becoming an obstacle that prevents organizations from staying competitive. Solution: Encourage collaboration by involving IT teams in strategic decision-making processes. Regularly assess team capabilities and provide opportunities for upskilling in emerging technologies like AI, cloud computing, and DevOps practices. Recognizing and celebrating small milestones in innovation can inspire creativity and build momentum across the organization.

Table: Modern IT Challenges vs. Strategic Solutions

IT Challenge
Common Pitfall
Strategic Solution
Legacy Systems Postponing modernization due to risk Phased migration with automated validation tools
Maintenance Overhead Overloaded internal teams Partnering with nearshore experts to free core capacity
Mobile Development Costly native builds Hybrid frameworks like Flutter or React Native
AI Integration Lack of adoption strategy Start small with measurable use cases and feedback loops
Data & Security Reactive compliance Automated validation and proactive data governance
Culture of Innovation Resistance to change Upskilling and celebrating incremental innovation

Conclusion: Taking the First Step Toward Transformation

The challenges faced by IT and software development teams are significant, but they are far from insurmountable. By modernizing legacy systems, outsourcing routine tasks, and fostering a culture of continuous improvement, organizations can unlock their teams’ full potential. These efforts not only enhance operational efficiency but also position the business for sustainable growth and competitive advantage. Are you ready to shift from maintenance to innovation? Contact us to explore how Scio’s nearshore software engineering teams can help you achieve your strategic goals. We would love to hear about the challenges your IT team is facing and discuss how we can help you overcome them. Contact us today to explore how our expertise can support your transition from maintenance to innovation.
Engineer reviewing system data on a mobile dashboard during an IT audit to map integration dependencies and security controls.
Start with a thorough audit, de-risk integrations, and build a stepwise roadmap for adoption.

FAQs: Modernizing IT and Software Development Teams

  • Begin with a comprehensive audit of existing systems to identify bottlenecks and integration dependencies. This creates a roadmap that minimizes risk and defines clear, phased steps for successful modernization.

  • Nearshore teams provide time-zone alignment, cultural fit, and collaborative agility that help internal teams focus their capacity on high-value innovation initiatives (like R&D) while maintaining critical delivery speed.

  • Outsourcing routine support and maintenance frees internal engineers to redirect efforts toward strategic growth projects, such as AI integration, new product development, or core digital transformation. It maximizes the ROI on your top talent.

  • By starting with non-critical functions and applying strict security controls like access management, data encryption, and automated monitoring. This approach mitigates risk and ensures governance before scaling AI adoption across the enterprise.

Luis Aburto_ CEO_Scio

Luis Aburto

CEO
Navigating the Agile Deadline Tightrope: Balancing Speed and Team Wellbeing

Navigating the Agile Deadline Tightrope: Balancing Speed and Team Wellbeing

Project Management, Software Development

Written by: Scio Team 

Person using a smartphone with an AI chatbot interface symbolizing digital customer support in FinTech.
Software development often feels like a high-wire act: balancing ambitious deadlines with the well-being of our valued teams. Pushing boundaries in an agile environment is crucial, but we want to avoid tipping the scales into burnout or diminished performance. This post is your roadmap, your supportive net beneath the wire, guiding you through the challenges of meeting deadlines without compromising team health. 

Tackling Inefficiency Head-On 

Clear Backlog Vision

Before embarking on the development odyssey, ensure you have a detailed roadmap. Our seasoned Test Engineer Lead, Angeles Banda emphasizes the importance of «knowing your team» during this stage. «Refine the backlog with your team,» she advises, «understanding their strengths and weaknesses to assign tasks strategically.» Break down epics into clear, user-centric stories, and estimate complexity realistically, and this should happen first, before breaking down epics. Epics could live in the backlog for a long time if they are not a high priority, sometimes those epics are no longer needed down the road, so why use our time focusing on those at the beginning? This focused vision eliminates confusion, fosters ownership, and keeps everyone marching toward the same north star. 

According to the Harvard Business Review, even the most agile teams struggle when priorities aren’t clearly defined, reinforcing the importance of backlog clarity and strategic focus.

Team Capacity Check 

Don’t overestimate your team’s sprint pace. Analyze past project data and factor in individual strengths. Are you expecting a lean team to scale Mount Everest in two sprints? Allocate tasks strategically, considering both workload and expertise. Remember, overburdened teams lose momentum and need help to maintain their stride. 

Scope Creep 

The Feature Intruder: Feature creep can derail even the most meticulously planned sprint. Define clear acceptance criteria for each user story and prioritize ruthlessly. Don’t hesitate to raise the red flag during daily stand-ups on enticing yet resource-intensive additions. Jesús Magaña, a senior Project Manager recommends “I recommend to do this right away when noticing a roadblock in our goal path, not necessarily waiting till the next daily Scrum meeting, as we would be wasting time if we do so”. 

Hands assembling puzzle pieces to symbolize open communication and collaboration in Agile teams in Texas
Collaboration that clicks—daily loops that keep Austin and Dallas teams aligned.

Building Bridges of Collaboration

Open Communication Loop

Information silos are communication breakdowns waiting to happen. Foster a culture of open dialogue through daily stand-ups, regular sprint reviews, and candid retrospectives. Remember, transparency builds trust, prevents misunderstandings, and keeps everyone on the same page. 

As Scio highlights in its blog Why Nearshore Is the Right Fit for Agile Software Development, cultural alignment and real-time collaboration are essential foundations to make agile truly effective.

Taking it further

As Jesus Mañaga, a senior project manager, suggests, add a «question of the day» to daily scrum meetings. Encourage team members to share their ideas and beliefs. This fosters a more cohesive team spirit, where different perspectives fuel creativity and strengthen solutions. You’ll find performance naturally blossoms by going the extra mile to build connections within the team.

Prioritizing the Critical Path 

Not all user stories are equal. Identify the critical path and the sequence of dependencies that must be completed on time for the sprint to deliver value. Prioritize these stories ruthlessly, allocating resources efficiently to achieve core objectives. Think of them as the urgent bridges on your product roadmap, paving the way for successful sprints 

SMART Goal Setting: Unattainable goals are morale-sappers 

Set SMART objectives for each sprint – Specific, Measurable, Achievable, Relevant, and Time-bound. Break them down into bite-sized, trackable tasks, and celebrate each completed story as a mini-victory. Remember, progress fuels motivation, keeps spirits high, and propels the team forward. 

Recognition: The Morale Booster

At Scio, this philosophy is embedded into our internal development framework, Scio Elevate, a continuous growth program that nurtures technical mastery, soft skills, and leadership balance. It ensures that motivation and performance evolve together — not at each other’s expense.

The Balance Between Speed and Wellbeing in Agile Teams — practical guidance for leaders in Austin & Dallas.
Aspect
Focus on Speed
Focus on Wellbeing
Balanced Approach
Sprint Planning Aggressive deadlines, minimal buffer Extended timelines, lower urgency Realistic velocity based on data and team input
Workload Distribution Overcommitment and multitasking Selective task ownership Clear priorities and focused ownership
Feedback & Recognition Rare and result-driven Frequent and emotional Timely, specific, and growth-oriented feedback
Team Energy High output, short-term wins Sustainable rhythm, less stress Steady performance with periodic rest cycles

Recognition: The Morale Booster: Don’t let hard work go unnoticed

Publicly acknowledge and celebrate individual achievements during stand-ups and retrospectives. As Jesus Mañaga, suggests, take this gratitude one step further: dedicate time within retrospectives for team members to express appreciation for each other. A Kudos board is a perfect tool for this. Encourage specific and heartfelt acknowledgments of how a teammate’s effort, skill, or even positive attitude had a positive impact. These «powerful gratitude words,» as Jesus calls them, go beyond simple praise and build bonds of trust and support within the team. Remember, a team that celebrates together, and excels together…

Learn how Scio fosters this culture of recognition and personal growth through its internal development program Scio Elevate, which focuses on long-term team wellbeing and continuous improvement.

High-performance collaboration concept with technology icons, representing nearshore software partnerships for companies in Austin and Dallas
Nearshore collaboration that scales—built on trust, clarity, and a sustainable pace.

Beyond the Blog: Sharing the Agile Wisdom

Scio believes in high-performance collaboration and the power of strong partnerships. This post isn’t about selling you anything. Instead, it’s an invitation to share your own experiences and hard-won knowledge.

Have you overcome deadline challenges with innovative techniques? We want to hear from you. Sharing your experience can help others to navigate the same terrain.

If you feel like it, comment below with your tips for overcoming sprint challenges.

Remember, conquering deadlines is a continuous journey, not a one-time feat. Let’s share our playbooks, celebrate our victories, and learn from each other’s stumbles. Together, we can create a future where ambitious delivery is synonymous with team resilience and shared success.

Contact us to explore how a nearshore model built on trust and collaboration can help you meet your goals — without burning out your team.

¡Hasta la victoria! 

FAQs About Balancing Agile Deadlines

How Is Value Really Created? The Forgotten Formula of Perception, Resources, and Satisfaction

How Is Value Really Created? The Forgotten Formula of Perception, Resources, and Satisfaction

Communication & Collaboration, Customer Experience, Nearshore, Project Management, Shared Value, Success Stories

By Guillermo Tena
Customer evaluating satisfaction with stars, representing value perception in marketing.
“We want to create value.”

You hear it everywhere—meetings, pitches, resumes, LinkedIn profiles. But… what does it actually mean to create value?
And more importantly… who decides what’s valuable?

This article doesn’t just answer those questions—it gives you a practical (and actionable) model to understand how value is created from the customer’s perspective, and how that translates into real satisfaction, loyalty or abandonment.

What does it mean to create value?

From a behavioral and strategic standpoint:

Value is anything a person is willing to spend their resources on.

And those resources aren’t just money. They include:

  • Time (the most limited asset)
  • Money (the most exchangeable)
  • Effort (a mix of cognitive, emotional, and physical load)

Every time a customer buys, subscribes, or interacts with you, they’re making an implicit judgment:
is what I get worth what I give? That’s where the key concept comes in:

Value is not what you say it is. It’s what the customer perceives.

In marketing, you’re not selling products or services. You’re selling perceptions.

Perceived value is the real engine behind any purchase decision. Which is why, as a brand, business, or professional, you don’t get to define if you’re creating value. The market does.

This simple principle requires something complex:

  • Humility to listen
  • Empathy to observe without bias
  • Curiosity to constantly validate

If you don’t know how your offering feels from the other side of the counter, you’re guessing.

Person using smartphone with review stars, symbolizing perceived value and customer satisfaction
Perceived value is the real driver of loyalty, satisfaction, and repeat purchases.

The Satisfaction Formula (and Why Most Forget It)

Once you understand that value is perception, you can apply a fundamental formula:

Satisfaction = Perceived Value – Resources Invested

Picture it like a scale. Depending on how it tips, you’ll get one of three outcomes:

Satisfaction

Relationship
Perceived value ≈ Resources invested
Customer feeling
The customer feels it was worth it.

High Satisfaction / Promoter

Relationship
Perceived value > Resources invested
Customer feeling
The customer feels like they won—and becomes a fan.
Business impact
Repeat purchases, loyalty, and positive word of mouth.

Dissatisfaction

Relationship
Perceived value < Resources invested
Customer feeling
The customer feels like they lost, won’t return, and may warn others.

Satisfaction is an emotional equation, not just a functional one. It’s built through the entire experience—not just the product.

Why This Formula Matters to Your Business

Because if you understand this equation, you can diagnose and improve every part of the
customer journey. You don’t need more features, you need to deliver more perceived value with less friction.

Key questions to apply this thinking

  • How much effort does it take for your customer to get what you offer?
  • Are you communicating value clearly—and emotionally?
  • Where can you reduce the perceived cost of your experience?
  • Are you focused on exceeding expectations—or just meeting them?

Mental Tool: The “Emotional Fairness” Model

People don’t just want value. They want fairness in the exchange.

When what they receive feels fair—or better—than what they gave, they feel good. When it doesn’t,
their defense system kicks in: they hesitate, withdraw, or walk away.

You’re not just competing with other brands. You’re competing with your customer’s emotional memory of their best—and worst—experiences.

Hand pointing at customer journey icons, showing how satisfaction comes from balancing value and effort
Reducing customer effort and friction increases perceived value across the journey.

Conclusion: Understand to Serve

Creating value isn’t about adding more. It’s about delivering what truly matters.

And that only happens when you stop looking at your offer through your own eyes— and start seeing it through the eyes of the one who chooses (or rejects) you.

If you’re not creating high perceived value with less cost, you’re not creating satisfaction. You’re creating friction.

Frequently Asked Questions

It’s the customer’s subjective judgment of what they gain versus what they invest (time, money, or effort).

By comparing expected value with perceived value received. Tools like NPS, CSAT, and interviews can help.

Because effort is one of the key “hidden costs” affecting value perception. Smooth, simple experiences create fans.

Want to dive deeper into how to design high-perceived-value offers, reduce friction, and boost customer satisfaction?
Happy to chat.
Guillermo Tena

Guillermo Tena

Head of Growth
Founder @ KHERO (clients: Continental, AMEX GBT, etc.) Head of Growth @ SCIO Consultant & Lecturer in Growth and Consumer Behavior

Remote Work: Soft skills for a successful team

Remote Work: Soft skills for a successful team

Entrepreneurship, Nearshore, Outsourced Engineering Team, Project Management, Successful Outsourcing

Written by: Monserrat Raya 

Wooden blocks with teamwork, communication, and leadership icons on green background

Introduction

If you’re leading a development team in Dallas or Austin today, chances are your engineers aren’t all in the same office—or even the same country. Your roadmap is ambitious, deadlines are aggressive, and the talent shortage keeps your recruiting pipeline thin. To stay competitive, you’re working with distributed or nearshore teams.

But here’s the reality: technical skills alone won’t keep your team moving. A sprint can fall apart not because your developers don’t know React or Python, but because messages are misunderstood, feedback feels harsh, or ownership isn’t clear. That’s why soft skills—communication, adaptability, accountability, empathy—are now the backbone of successful remote engineering teams.

At Scio, we’ve been working remotely with clients in the U.S. for more than 20 years, long before “remote work” was a buzzword. From Dallas startups to Austin scale-ups, we’ve seen first-hand that the most effective teams are not just technically strong—they are culturally aligned, communicative, and built on trust.

Why Soft Skills Matter More in Remote Tech Teams

In a traditional Dallas office, a CTO could walk over to a developer’s desk, sense frustration, or overhear an informal conversation that cleared up a misunderstanding. In remote environments, those subtle signals vanish.

When collaboration depends only on Slack threads or Zoom calls, the cost of miscommunication increases exponentially. An ambiguous message can stall a sprint. A lack of accountability can delay a deliverable without anyone realizing it until the next retrospective.

Soft skills are no longer “nice to have.” They are the invisible infrastructure of distributed teams:

  • Clear communication: it’s not about writing more, but writing better—documenting decisions so they survive across time zones.
  • Empathy and cultural awareness: what sounds neutral to an engineer in Dallas may feel abrupt to a teammate in Monterrey. Empathy reduces friction and builds trust.
  • Radical accountability: when you can’t see people at their desks, you need to rely on ownership of deliverables, not hours online.

Engineer typing on laptop with hologram icons of soft skills for remote communication
Illustration of remote communication soft skills such as adaptability and empathy, crucial for tech leaders managing distributed engineering teams.

Communication Beyond Zoom and Slack

We’ve all experienced the awkward silence of a Zoom call: is it confusion, a muted microphone, or lack of engagement? In distributed settings, these doubts erode confidence and slow execution.

For CTOs and VPs of Engineering, mastering remote communication isn’t optional—it’s the lever that determines whether your roadmap is achieved or derailed.

Practical strategies that consistently work for high-performing teams:

  • Set meeting etiquette: structured agendas sent in advance, rotating facilitators, and “camera on” for critical sessions.
  • Define meeting types clearly: client demos should not be run like internal brainstorms. Intent clarity reduces wasted time.
  • Create living documentation: if the decision isn’t captured in Confluence or Notion, it effectively doesn’t exist. This ensures progress even when teammates are offline.
  • Foster psychological safety: create “ask anything” channels, run bi-weekly learning reviews, and normalize recognizing mistakes without blame.

Comparative View

In-Person
Remote
Read body language, gestures, and tone easily Context missing, misinterpretations more likely
Quick desk-side clarifications Requires async clarity (Slack, docs, Loom)
Serendipitous chats build trust Needs intentional online social spaces

Choosing the Right Tools for Remote Collaboration

The wrong tools can fragment a team faster than timezone differences. A Dallas CTO once told us: “We had six platforms, and nobody knew where decisions lived.” That’s tool overload.

Tools That Matter Today
  • Collaboration & Docs: Notion, Confluence, Google Workspace.
  • Project Management: Linear, Jira, Trello (but used consistently).
  • Async Communication: Loom, Slack clips.
  • Code Collaboration: GitHub Copilot Chat, GitLab.
  • Whiteboarding & B BreadcrumbListrainstorming: Miro, FigJam.

At Scio, we complement these with custom internal tools like an updated employee directory and proprietary time-tracking systems. They help our nearshore teams integrate seamlessly with clients in Texas, ensuring knowledge isn’t lost in silos.

Wooden blocks with teamwork, communication, and leadership icons on green background
Symbols of teamwork, adaptability, and accountability—representing the essential soft skills that keep nearshore development teams performing effectively.

Building Remote Company Culture Across Borders

Remote culture isn’t built on virtual happy hours or emoji reactions. It’s about how people feel about their work, their teammates, and the mission—even when separated by geography. The most resilient distributed teams are those where culture is designed, not left to chance.

What Works in Nearshore Teams

  • Structured onboarding: Culture starts on day one. Successful nearshore teams combine technical onboarding with cultural immersion—introducing new engineers not just to the workflow, but to the “why” of the product and the expectations of the client.
  • Shared rituals with intent: Daily standups, retrospectives, and demos create rhythm. Extending rituals to include cross-border celebrations—such as observing U.S. holidays with Mexican teams—strengthens alignment and reduces the “us vs. them” gap.
  • Continuous feedback loops: Strong cultures thrive on feedback, not annual reviews. Monthly one-on-ones, open retros, and tools for anonymous feedback allow issues to surface early and prevent disengagement.
  • Social bonding beyond tasks: Slack channels for hobbies, virtual coffee chats, and periodic in-person meetups (in Austin, Dallas, or Monterrey) transform coworkers into teammates. This sense of belonging directly improves retention and productivity.
  • Recognition and visibility: In remote setups, wins can easily go unnoticed. Structured recognition programs—where contributions are highlighted in cross-team meetings—help engineers feel valued across borders.

Nearshore teams in Mexico offer a unique advantage: shared time zones and cultural proximity mean rituals don’t feel forced. Instead, they blend seamlessly into daily collaboration, making remote culture less about distance and more about shared purpose.

Soft Skills Every Remote Engineer Needs

Here’s what CTOs in Dallas and Austin should look for when evaluating remote engineers:

Soft Skill
Impact on Remote Teams
Communication Ensures clarity across async and synchronous channels
Adaptability Smoothly navigates changing tools, processes, and time zones
Accountability Replaces “visibility” with ownership of deliverables
Cultural Awareness Builds trust between U.S. and LATAM team members
Feedback Skills Drives continuous improvement without tension

Final Thoughts: Why Nearshore Teams Excel at Remote Collaboration

For CTOs and VPs of Engineering in Dallas and Austin, the future isn’t “remote vs office”—it’s distributed, flexible, and collaborative. But without strong soft skills, even the best technical teams stall.

That’s why nearshore partnerships with Mexico are so powerful:

  • Shared time zones = real-time collaboration.
  • Cultural alignment reduces friction.
  • Frameworks like ScioElevate ensure talent growth and accountability.
  • Over 20 years of Scio experience = proven success with U.S. tech leaders.

Scio helps you build trusted, skilled, and easy-to-work-with remote teams—designed to truly extend your capacity without losing culture or speed.

FAQs About Remote Team Soft Skills

  • Because distributed teams can’t rely on proximity to solve problems. Soft skills like empathy, clarity, and accountability ensure collaboration works across borders and time zones.

  • By creating structured onboarding, shared rituals, and open feedback loops. Nearshore partners like Scio help reinforce these practices with cultural alignment and proven frameworks.

  • Communication, adaptability, accountability, and cultural awareness are non-negotiable. Technical skills matter, but without these, delivery suffers.

  • With shared time zones, cultural familiarity, and long-term partnerships, nearshore teams eliminate many of the barriers offshore teams face, while keeping costs competitive.

Building Remote Company Culture Across Borders

Remote culture isn’t about virtual happy hours. It’s shared purpose, clear expectations, and repeatable rituals that make collaboration feel natural across Dallas, Austin, and nearshore teams in Mexico.

Structured Onboarding

Blend technical ramp-up with cultural immersion. Day one clarifies mission, quality standards, communication channels, and the decision log (Notion/Confluence). Assign a buddy for the first two weeks.

Rituals with Intent

Daily standups, bi-weekly retros, and monthly demos must have a clear agenda and documented outcomes. If a meeting doesn’t produce an artifact, it didn’t scale culture.

Feedback Loops & Psychological Safety

Establish a cadence of 1:1s, learning reviews, and an “ask-anything” space. Early, blameless surfacing of issues is the hallmark of resilient cultures.

Recognition & Visibility

Make contributions visible across borders—shout-outs during demos, rotating speakers in tech talks, and explicit recognition to prevent remote disconnect.

Time-Zone Alignment (U.S.–Mexico)

Synchronize critical decision-making within overlapping Dallas/Austin–CDMX/Monterrey hours. Use async video/docs for everything else to reduce hand-off loss.

Cross-Border Rituals

Observe U.S. and Mexican holidays, host bilingual tech talks, and celebrate milestones on both sides to replace “us vs. them” with shared identity.

Shared Quality Bar & Definition of Done

Maintain a single artifact with quality standards and DoD. Align QA and code reviews within overlap windows to speed feedback cycles.

Knowledge as a Product

Centralize context and decisions. If it isn’t documented in the source of truth (Notion/Confluence), it doesn’t exist.

Suggested Readings

From Scio Insights

From Industry Leaders

The “Jurassic Park” Problem: How to avoid having a rogue IT person wreaking havoc in your business?

The “Jurassic Park” Problem: How to avoid having a rogue IT person wreaking havoc in your business?

Outsourced Engineering Team, Product Development, Project Management

Written by: Monserrat Raya 
Team extension model for software development in Austin and Dallas

The Jurassic Park Analogy: When IT Fails from the Inside

Just like in Jurassic Park, where one insider caused a total collapse of operations, a rogue IT employee can wreak havoc in a modern business. With privileged access, they can:

    • Delete or manipulate sensitive data
    • Leave systems unpatched, opening doors to attackers
    • Create hidden admin accounts for ongoing access

Leak insider information to competitors

Lesson: It’s not always the hackers outside your walls. Sometimes, the threat comes from the inside.

IT has become a vital element of modern businesses. It helps streamline complicated tasks like data management, customer communications, logistic planning, inventory tracking, and much more, and with a reliable IT infrastructure, businesses can identify new opportunities to secure better positions and increase success. Technology also increases the efficiency of employee productivity with tools such as remote collaboration platforms and automation solutions-enhancing operational agility, and (perhaps most importantly), businesses can gain an invaluable understanding of their customers by leveraging Big Data technologies which help gather customer feedback in real-time to make better decisions quickly. All in all, it becomes clear that modern businesses cannot survive without reliable IT support, making it the backbone of every successful organization today.

IT has become a vital element of modern businesses. It helps streamline complicated tasks like data management, customer communications, logistic planning, inventory tracking, and much more, and with a reliable IT infrastructure, businesses can identify new opportunities to secure better positions and increase success. Technology also increases the efficiency of employee productivity with tools such as remote collaboration platforms and automation solutions-enhancing operational agility, and (perhaps most importantly), businesses can gain an invaluable understanding of their customers by leveraging Big Data technologies which help gather customer feedback in real-time to make better decisions quickly. All in all, it becomes clear that modern businesses cannot survive without reliable IT support, making it the backbone of every successful organization today.

The “Jurassic Park” Problem: How to avoid having a rogue IT person wreaking havoc in your business?

However, the importance of IT means that, if not managed properly, this area can become a vulnerable spot for malicious activities. And we are talking about more than outdated systems or weak passwords; a lack of the proper protection and approach to the IT demands of a business can set off a chain reaction that leads to data loss, security breaches, and serious financial damages. To avoid such breakdowns, organizations should remain diligent in their approach to IT – regularly updating their systems and educating staff on how to protect confidential information. But sometimes, even this is not enough. Sometimes, the call comes “from inside the house”.

Let’s take a funny example of what we mean: Jurassic Park, a cinematic classic that depicted the consequences of human curiosity getting ahead of our technical knowledge and abilities. In the movie, the breakdown of the park is set by a chain reaction of deficient approaches to security, management, and technology, really underscoring how vital these security measures are, even for the most cutting-edge technology. Disaster can quickly occur when deficiencies or malicious actors are not addressed appropriately, perhaps offering an allegory for the high stakes involved with managing today’s cyber infrastructure. As illustrated throughout the film, underestimating risks carries great consequences, and whether computing networks, industrial structures, or hybrid environments, a secure foundation is key to avoiding catastrophic repercussions. 

Implementing best practices, such as authentication and encryption protocols, testing networks regularly and actively informing employees about threat scenarios can minimize risk and maximize resilience in any system. By providing a great storyline while emphasizing essential IT principles, this classic film reinforces why taking security precautions should always be considered—now more than ever before. For businesses or organizations handling sensitive data, individuals need to take initiative in understanding their responsibilities and roles in protecting corporate information from cyber-attacks or malicious use.

Red alert icon symbolizing IT security risks in modern businesses
Even a single IT employee with privileged access can disrupt operations.

The human element of IT risk

Arguably, one of the main points of Jurassic Park is showing why having less-than-ideal IT personnel causes all sorts of problems, and can be catastrophic for a business. By the nature of their job, they have access to sensitive data which, when put in the wrong hands, can be used for nefarious purposes, as well as let in malicious actors by neglecting to patch systems or by not monitoring user activity, allowing third-parties access to information they shouldn’t. Furthermore, they can misuse privileged access, delete data, or create accounts with admin privileges to keep the system and networks open to themselves. 

Ultimately, what a rogue IT person can do is put an entire business at risk outside of traditional cybercrime, giving competitors advantageous inside knowledge (just like the character of Dennis Nedry does in the movie) or manipulating software to perform unwanted tasks. Indeed, in most cases, the development of malicious software by an insider is virtually indistinguishable from cyberattacks by outside actors, so taking steps to secure your business and prevent unauthorized changes is essential if you want to protect your assets, resources, and brand reputation. In hindsight, taking full measures to prevent such situations is what protects businesses, ensuring they have policies and procedures in place to monitor the behavior of their IT staff, particularly when it comes to sensitive matters such as data access and storage. It’s important to review logs and technical security measures such as firewalls and system software patches to make sure they are up-to-date. However, you could say that these steps are more about mitigating potential harm done by disruptive people than outright preventing it. What is the best approach, then, to avoid falling into such circumstances?

Rogue IT Risk · Quick Check

Mark what applies to your IT today. Your score updates live.

Score: 0/8
LOW RISK

Good start. Want to validate your IT posture with a nearshore partner?

Let’s review your case

Why Trust Matters Most in IT

Technology evolves fast, but trust is timeless. Businesses need IT staff—and partners—that are both technically strong and trustworthy.

Nearshore Partnerships as a Safeguard

Instead of relying solely on local hires or freelancers, many mid-sized companies in Austin and Dallas are turning to nearshore development partners in Mexico.
Here’s why:

Cybersecurity breach concept with red lock among blue locks
IT insider threats can compromise security as much as external hackers.
IT Delivery Options vs Pros & Cons (Nearshore Mexico vs U.S. In-House & Contractors)
Option Pros Cons
In-House IT (U.S.) Full control, cultural fit High cost, long hiring cycles
Freelancers / Contractors Flexible, quick onboarding Low accountability, inconsistent security
Nearshore Partner (Mexico) Trusted teams, lower costs, real-time collaboration, strong oversight Requires proper vendor evaluation
Business professional handling IT data security with digital padlock interface
Strong IT governance reduces insider risks in modern businesses.

Trust is the name of the game

When it comes to IT, technology alone isn’t enough—trust is what makes systems reliable and secure. A single technician with too much access, or a partner without proper accountability, can expose your business to risks that no software update can fix.

For mid-sized companies in Dallas and Austin looking to build or strengthen their IT departments, establishing trust with anyone who manages sensitive data is critical. That’s why many leaders choose to work with nearshore development partners in Mexico. Instead of struggling to stay on top of every new security patch or compliance requirement, a trusted partner provides:

  • Experienced professionals who bring proven IT governance and security practices.
  • Built-in oversight to reduce the risk of downtime or insider mistakes.
  • Real-time collaboration thanks to shared time zones and cultural alignment.
  • Clear accountability with service-level agreements that freelancers or contractors often lack.

As Rodolfo Cruz, Project Management Officer and Partner at Scio, explains:

“Nearshore development partnerships offer a powerful combination of trust and accountability. Unlike freelancers or one-off contractors, nearshore teams work under formal standards that guarantee quality, accessibility, and long-term peace of mind for businesses.”

Trust also applies inside your organization. Strong IT policies make sure no single person holds too much power, while regular audits and ongoing training keep teams aligned with the latest security protocols. With these safeguards in place—and a nearshore partner committed to accountability—your IT stops being a weak point and becomes a foundation for growth.

Avoiding the “Jurassic Park” problem 

In other words, to prevent rogue IT technicians from creating chaos in the workplace, it is essential to have extensive management policies and procedures in place. The lesson is that businesses must understand the potential risks associated with any technological system they implement, as well as the appropriate steps needed to achieve a safe operation. Individuals and companies alike need to be cognizant of evolving threats to create effective security initiatives. With its exciting plot, Jurassic Park serves as a parable for the need for sound practices in IT; we must remember not all advances come without inherent risk.

So, if you are looking for solutions regarding IT, Nearshore development partnerships can be the perfect solution for mid-sized businesses seeking to streamline their IT management. Companies that are willing to partner with companies in other countries gain access to a more comprehensive network of software engineers and talent with specialized skills. When searching for an effective IT solution, it pays to consider the advantages that come with selecting nearshore development partners. Taking these proactive steps to prevent a potential rogue IT person will minimize future conflicts, protect company assets and ensure everyone is looking in the same direction. As we can see from Jurassic Park, IT security is vital for maintaining a safe and efficient workplace environment, and without proper protocols in place, unauthorized users can access confidential data often leads to a catastrophic result that you can avoid with the proper people on your side.

IT security concept with glowing lock over computer keyboard
Mid-sized companies in Dallas and Austin rely on trusted IT partners.

The Key Takeaways

  • IT is the backbone of modern business. It drives growth and efficiency, but without proper management it can also become a serious vulnerability.
  • Insider threats are real. Just like the Jurassic Park analogy, a single IT technician with too much power can cripple operations and expose sensitive data.
  • Trust must guide every IT process. Having the right people—and the right partners—handling digital infrastructure is critical for long-term stability.
  • Nearshore partnerships provide accountability. For companies in Dallas, Austin, and across the U.S., nearshore teams in Mexico offer the mix of trust, expertise, and real-time collaboration needed to keep operations running securely and efficiently.

Think of us as your extended team, right next door.
Since 2003, we’ve been working with U.S. tech leaders to prevent the kind of “Jurassic Park” IT disasters that keep people up at night. Nearshore means real-time collaboration, cultural fit, and a partner you can count on when it matters most.

If you’re in Dallas, Austin, or anywhere in the U.S., and you want IT to stop being a worry, let’s connect. We’ll listen first, understand your challenges, and then share how Scio can help.

Let’s start the conversation, your trusted nearshore team is closer than you think.

FAQs About Preventing Rogue IT Risks

  • An IT staff member who abuses privileged access, either by negligence or intent, to disrupt operations or leak sensitive data.

  • By partnering with nearshore providers in Mexico that ensure oversight, accountability, and security best practices.

  • Because they operate under formal accountability frameworks, with clear performance metrics and stronger cultural alignment.

  • Regular audits, limited admin privileges, up-to-date patches, and clear reporting lines.

  • Never underestimate insider risks. Trust, oversight, and preparation are essential to avoid catastrophic IT failures.