In an intricate and ever-evolving digital landscape, striking the right balance between skill availability, project start speed, work methodologies, flexibility, and cost is critical if you want your projects to succeed, and this often requires choosing the right partner to help bolster your own capabilities and capacity.
One of the options that has emerged as a compelling solution is the model offered by managed marketplaces, which provide a blend of diverse tech skills and resource strategy with a structured approach to delivery.
In this post, we’re exploring the merits and limitations of this approach, focusing on five critical areas: skillset availability, speed to start, ways of working, flexibility, and overall cost.
Managed marketplaces stand out for their extensive, varied ecosystem of vetted, high-quality developers.
These platforms provide access to expertise that covers a wide array of technologies, and the opportunity to access specific skillsets required for individual projects.
Whether it’s a mobile application, a state-of-the-art website, or a complex backend system, managed marketplaces' talent pool is likely to have the right expertise.
The vast skillset offered can be a double-edged sword. Ensuring the alignment of the right skills with the exact project requirements needs careful thought. This process, while essential, can sometimes be time-consuming and may demand a clear understanding of the project’s technical requirements.
If you’re a non-technical leader, you may also need to invest in project scoping and management support here.
When it comes to the agility of initiating projects, managed marketplaces stand on the podium. The large pool of teams offers an on-demand responsiveness that can circumvent project delays.
This ready availability of teams enables you to hit the ground running, significantly reducing time spent on project initiation.
An additional advantage of managed marketplaces is their ability to scale rapidly, thanks to their wide network of professionals.
If the scope of your project suddenly expands, or you require additional resources on short notice, managed marketplaces have the capacity to meet these demands swiftly. This ability to scale up, or down, in response to project needs is an undeniable advantage when it comes to speed.
There's little debate about the advantage managed marketplaces hold when it comes to project initiation speed. With their vast, interconnected networks and streamlined processes designed for efficiency, they all but eliminate the typical bottlenecks and delays associated with traditional project start-ups.
However, this swift project kickoff does require preparedness and planning on your part to take full advantage. For instance, clear and detailed project requirements need to be at hand to avoid any miscommunication or misalignment of resources.
The path to project success is paved with effective collaboration. Managed marketplaces foster an environment conducive to high collaboration by meticulously matching teams based on skills, preferred engagement styles, communication methods, and more.
This attention to detail ensures that the working relationship is optimised from the outset. Beyond collaboration, the platform also presents a variety of flexible engagement models, catering to diverse project needs and work styles.
As with any new endeavour, working with a fresh team often brings with it a period of adjustment. Getting acclimated to new work styles, communication habits, and operational procedures are universal challenges across all engagement models.
Remember that in a new team setup, the members might have different preferences for communication – even something as simple as some preferring emails, while others favour direct meetings. These differences, if not managed correctly, can lead to misunderstandings or miscommunication.
You’ll also need to align the operational procedures of the team with the overall objectives of the project. Adjusting to new project management tools, understanding reporting structures, key milestones, and familiarising new personnel with the team's norms and conventions all takes time.
These hurdles require clear communication, patience, a shared understanding of expectations, and sometimes a bit of trial and error. However, once overcome, these initial obstacles pave the way for a streamlined, efficient, and highly effective project execution process.
One area where managed marketplaces excel is their flexibility, particularly when it comes to assembling teams or a series of multiple teams that perfectly complement each unique requirement.
Unlike traditional in-house teams, managed marketplaces provide the liberty to choose from a vast pool of diverse skills and talents. This enables you to deploy an optimal team composition that precisely meets your project's needs.
As the scope of the project shifts or new needs arise, managed marketplaces allow you to alter the team structure, add new skill sets, or adjust resource allocation promptly. This flexibility ensures that your project can adapt to change and stay on track, regardless of unforeseen developments.
While the flexibility offered by managed marketplaces is a significant advantage, it's important to recognise that due to the breadth and scope of resources and capabilities they provide, this model offers additional benefits for larger companies.
Given the wide range of expertise available, companies with multiple needs are likely to extract maximum value because the procurement and onboarding has been completed upfront with the managed marketplace. This means resources can easily be added, replaced without additional red tape.
The removal of the procurement barrier to high performing teams means managed marketplaces remain unmatched, making them an appealing option for many forward thinking tech leaders who are looking for alternative resourcing strategies.
With blended rates that pool various skill levels and expertise, and low management overhead, managed marketplaces can ensure that the real cost of project delivery remains affordable. This aligns well with strategies that prioritise value for money, creating a compelling equation for many organisations.
In addition, expenses related to hiring, onboarding, training, and retaining employees are significantly reduced. The cost savings from these aspects should not be underestimated as they can contribute substantially to the overall cost-effectiveness of this model.
Another key advantage is the predictable cost. You can often agree on a fixed price for a specific scope of work, making budgeting simpler and more straightforward. This eliminates the risk of unexpected costs that can come with in-house or freelance models, where projects can often exceed their initial estimates.
Despite the cost benefits, it's important to note that the costs associated could be slightly higher than self-managed projects due to the incorporated margins. This markup is required to support the operation of the marketplace and to ensure the provision of high-quality, vetted talent for your projects.
However, when you evaluate the broader picture, the strategic value added through access to a wide range of tech skills, efficient resource strategies, and comprehensive project management often outweighs this marginal increase in cost. Also, the potential for reduced project delays, increased success rates, and saved management time can result in substantial indirect cost savings, making the total value proposition tip favourably in the direction of managed marketplaces.
While managed marketplaces offer undeniable advantages, they might not be the most cost-effective solution for small or one-time projects. For small projects, the costs might outweigh the benefits, making freelance or in-house options potentially more viable. As always, a careful assessment of the project's size, scope, and complexity should guide your decision-making process.
Managed marketplaces present an excellent option for managing and delivering on tech roadmaps. This platform combines the best of various worlds – broad technology skills, swift project initiation, collaborative and flexible work models, and a balanced cost structure.
A partner with an outcome-focused and technology-agnostic approach ensures that you remain at the cutting edge. The commitment to quality and the ability to adapt to different engagement models underscore the compelling case for considering managed marketplaces for your digital needs.
While no single approach is a one-size-fits-all solution for every organisation or every project, the overall advantages of managed marketplaces, - diverse skillsets, quick project initiation, flexible work methods, and cost-effectiveness – mean they are one of the more strategically appealing options available.