6-step strategy for service companies to overcome challenges in 2023

6-step strategy for service companies to overcome challenges in 2023

Nahuel Vigna

CTO & Co-Founder

6 min

2023 has brought many challenges for all companies. As countries and economies worldwide are facing difficult circumstances, C-Levels across various industries need to make tough decisions. One of them is related to their software development services, either if they have an internal team or an external software vendor.

All moments of crisis make us rethink what we can change to adapt to a new reality, and how we can be prepared for what comes next. In today’s scenario, company leaders should be putting their focus on three priorities:

  • Delight their clients.
  • Being cost efficient.
  • Be ready for reactivation.

At CloudX we understand this situation and we want to share our perspective with other companies. We have been thinking of a 6-step strategy to navigate the challenging business landscape ahead.

1) No more average quality

Usually, one common cost efficient measure many companies make is to reduce their staff. However, these reductions in quantity should not have an impact on the quality of their services. If not, they risk losing clients to competitors if this happens.

We know small teams can have outstanding technical performance. If the members in these small teams have enough Seniority and autonomy, they can perform at their best and surpass expectations. Also, having more Seniority in the teams means more productivity and cost reductions for the company.

To truly delight their clients, companies can’t have average teams any more. They must ensure they have the best talent available.

2) Deliver the extra mile

These small teams with high Seniority must also be capable of delivering the extra mile. Only super Senior developers are ready for any challenge, can be pragmatic when solving problems, and are versatile and proactive. They can add value to the company in every stage of a project.

An outstanding team not only delivers results and keeps a company at the top of their game, but they also proactively propose new initiatives. They work closer to the client’s needs to ensure customer satisfaction which results in customer loyalty, key in a highly competitive marketplace. It also gives the team insights to anticipate new opportunities for the business.

Besides, a Senior team that is delivering the extra mile and being proactive when solving problems, is also a team that is having a great performance, such that it represents a cost reduction for the company. When a development team is building a software faster and with higher quality there is no rework.

3) Real-time communication

Real time communication is key for success in a project and maintaining the quality of a service. Team members work better if they are in a similar time zone.

Companies need their problems addressed at the moment. They can’t wait for the next day. That’s what needs to be different today to maintain the quality of the service and delight clients. When team members work in near time zones, this can be assured.

Nearshoring software development services is one of the possibilities to ensure real-time communication. It can also be the cost efficient option for companies that have had to reduce their onsite teams but can recur to nearshore vendors at a lower rate to complete their team needs.

4) Ready, set, go

Companies must be prepared to scale up quickly depending on industry demands. We must remember that today’s measures for guarding the business cannot be perjudicial for the future.

All service companies need to have their scale-up strategy and be hand to hand with a partner that can be ready for growth through talent recruitment or other scaling product team strategies such as the mitosis pattern.

When economies recover from these challenging times and the markets go back to normal, every new customer is highly valuable. Any company that is unable to scale-up efficiently risks losing business to more agile competitors.

5) Strong tech referents

With strong tech referents in the development team, we can assure the increase of the quality of the service. They will also deliver the extra mile and impulse the company for when economies reactivate.

Strong tech referents can also help a company scale, because they will understand any market needs and demands that surge. Today, company leaders need several tech referents in their teams, now more than ever.

6) Teams replacement strategy

In today’s volatile times, companies must respond faster with a strategy to change their development teams. Even if they don’t intend to change their current teams, our recommendation is to always have a plan prepared if the need comes.

Flexible teams must be available and ready for any challenges, so that companies can respond to changes in the industry on short notice and stay ahead of competitors.

When teams are not average and their performance is the best, there is cost reduction for the company. Senior developers work better, faster and with higher quality. Hence, there is less rework. This is a competitive advantage for service companies today.

Also, a team replacement plan is necessary when there are teams that are not aligned with this need. That way, company operations can continue to run smoothly and their business is not affected.

In summary

In today’s challenges, companies must ensure maintaining their customers by delighting them with high quality in their services. They must also make cost efficient measures that do not jeopardize this quality. Finally, they must be ready for economic reactivation so they can gain new customers when things go back to normal.

The 6-step strategy we presented in this article can help service companies improve their software development teams and overcome today’s difficult economic circumstances. They are:

  • No more average quality
  • Deliver the extra mile
  • Ready, set, go
  • Real-time communication
  • Strong tech referents
  • Teams replacement strategy

If you want to know more about our nearshore software development services, visit our website and follow us on LinkedIn.

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