Spk Systems

Steps which can Ensure a Successful IT Outsourcing Strategies

The real-world applications of Blockchain are expanding by the minute. It has extensive real world applications and benefits but the digital businesses are still struggling to leverage the true potential of Blockchain solutions. Now there are two possible questions that stand in front of business owners.

Is Blockchain-as-a-service a workable solution?

Is Blockchain-as-a-service for business the answer of how to make Blockchain technology accessible to an audience? In this article, we are going to look into the BaaS solution for business works, the benefits of blockchain as a service, and how to choose the best BaaS providers operative in the market today.

 

What is Blockchain-as-a-service?

For offering the benefits of Blockchain based services to a wider audience, the technology has started being offered in the cloud as a service business model. On the operational front, it is more or less similar to the SaaS, PaaS, and IaaS models which enables using cloud-based apps and storage.

It allows businesses of all types and sizes to access Blockchain based technologies without investing in the in-house development. The BaaS model enables companies to access the Blockchain provider’s service wherein they can develop Blockchain applications at minimal cost. This benefit is what has made it a key part of the Blockchain technology trends.

 

Key takeaways:

Blockchain-as-a-Service is third party cloud infrastructure and management that businesses use for developing and managing Blockchain applications. It operates as a web host which runs an app’s backend. BaaS acts as a catalyst which leads to widespread adoption of Blockchain technology.

 

How Does Blockchain-as-a-Service Business Model Work?

Blockchain-as-a-service business model describes the process through which third parties install, host, and maintain a Blockchain network on the behalf of organizations. The service provider offers the setting up of Blockchain infrastructure and technology in return for fees. In many ways, the role of Blockchain-as-a-service for business is similar to that of a web hosting provider. It enables customers to make use of the cloud based solutions for developing and hosting Blockchain applications and smart contracts in the ecosystem managed by the provider. Here is a visual showcasing the working of Hyperledger Cello Blockchain-as-a-Service, which is a BaaS-like Blockchain module utility system and toolkit under the Hyperledger project. The BaaS integration in traditional business provides support around allocation of resources, bandwidth management, data security features, and hosting requirements. The biggest impact of BaaS on business is that the enterprises can concentrate on their main business without thinking of the complexities around Blockchain operation.

 

How Blockchain-as-a-service is Shaping Businesses?

BaaS comes with the package of smart data protection and competitive advantage, not to forget the expelling third party delegates part. This acts as a benefit over cost. Coming back to BaaS in the market, below are the global figures. Businesses and consumers are adapting to Blockchain technology. However, the operational overhead cost related to development, configuration, operation, and maintenance of infrastructure along with the technical issues act as a barrier. The advantages of Block chain no matter how massive, are very resource intensive and energy consuming – thus preventing the technology’s mass adoption. Renting a Blockchain infrastructure in BaaS allows businesses to acquire the skills needed for operating the Blockchain infrastructure. Additionally, the investment needed for entering the technology segment is also lowered, since the service agreement can be easily scaled up or even terminated within short notice. It offers a way for businesses to stay at the edge of technology without any unnecessary risks.

 

BaaS for startups

The opportunities of BaaS for businesses, especially small businesses, is deemed ideal for organizations which outsource the technological aspects, and are not very hands-down involved with the Blockchain’s working mechanism. It enables these firms to get the understanding of the technology without having to develop their proprietary Blockchain. The integration of BaaS solutions is being used by a number of industries for things like identity management, supply chain management, and payments. Blockchain development services are emerging as the ideal solution for a number of SME challenges like elimination of middlemen, lack of transparency, etc.

Outlining the outsourcing goals in detail before planning to invest in a particular model is not only the smart but also the most basic thing to do. It not only helps the company understand their personnel and tech needs but also ensures effective and efficient usage of the resources.

Any project will have a budget limit. Every project’s budget limit varies depending on the needs and market dynamics. However, it is always wise to have contingencies, isn’t it? Planning ahead for the uncertainties like an employee leaving or a need to ramp up the team or a change in product needs due to varying market circumstances, can be advantageous.
As we discussed above, there are three types of outsourcing models. Any organization must carefully decide on which model will be the most beneficial for them. They need to take into consideration several factors before making any decision. From cost, collaboration needs and Agility needs to technology stack and types of talent needed, the organization must know the needs for their projects properly before investing in a particular model.
No project is free of risks. No matter how much you plan ahead, there will be unexpected risks. It is important to ensure that the risks are mitigated timely before it can catastrophically impact the project. Risks like hidden costs, scope creep risk, deadline delays, security risk and not sticking to the core principle of the project, can all lead to the project failing.
The best way to deal with any risk is proper planning and ensuring continuous communication. Building trust is important for projects to be completed successfully. Any outsourcing vendor takes time to learn about a client’s business culture, and accordingly trains the team on how it functions and what it requires. This relationship helps vendors provide the most appropriate company-specific solutions while ensuring flexibility to predict a company’s changing needs in the future.

Finally, it is a must to track and monitor the progress of the project continuously. A company or development team must have clear key performance indicators (KPIs) in place. With continuous tracking, the company can ensure that the project is completed on time and the quality is maintained. It can also help them learn what to avoid the next time they outsource a project.

Outsourcing IT needs has several benefits. If a company makes meticulous choice when deciding on the right outsourcing model for a particular project, it can not only save costs but also deliver products of high quality. Aspire System’s Nearshoring Model offers the benefits of Offshoring model combined with the convenience of the Onshoring model.