As customer demands for digital services increase, businesses across all industries—particularly in the fast-paced BFSI sector—are under immense pressure to push out innovations quickly. However, a persistent challenge stands in the way: the overwhelming engineering backlog. The development backlog not only delays product launches and frustrates teams but also keeps businesses from staying ahead of the competition.
To overcome the challenge, many companies are now embracing the on-demand engineering team.By tapping into flexible, highly skilled teams, companies can minimize technical debt, deliver features faster, and drive innovation—without expanding headcount. In this article, we explore the business challenges of mounting backlogs, key benefits of the on-demand engineering team, and real-world use cases in the BFSI industry.
Key Reasons Behind Development Backlog Challenge
Over time, an engineering backlog can create a bottleneck that disrupts the seamless progression from ideation to market launch, slowing down the pace of product development. The development backlog is not a singular issue; rather, it is the outcome of multiple interrelated factors that collectively delay product updates and improvements.
Let’s break down the major challenges that contribute to the engineering backlog!
- Growing Product Enhancement Backlog
As products evolve, new features and improvements accumulate over time. When these enhancements are not prioritized or addressed promptly, a backlog develops. This backlog can quickly become overwhelming, causing delays in the release cycle and preventing businesses from capitalizing on new market opportunities.
In many organizations, more than 30% of new feature ideas often get stuck in the development backlog due to a lack of proficient IT professionals, slowing down innovation and reducing responsiveness to market demands. This stagnation means businesses risk falling behind competitors who can deliver new functionality faster.
- Outdated Tech Stack and Security Risks
Another critical factor is the reliance on outdated technology stacks. Legacy systems not only hinder efficiency but also pose serious security risks. According to Simform, companies using legacy platforms have reported up to 40% higher incidences of security breaches compared to those leveraging modern systems. These outdated systems often require significant workarounds just to maintain compatibility with new features, diverting valuable engineering hours away from innovation. Moreover, compliance requirements add an extra layer of complexity, forcing teams to address regulatory patches rather than developing new functionalities.
- Poor Test Coverage Slowing Releases
Effective testing is critical to ensuring high-quality releases, yet many teams struggle with insufficient test coverage. Without a robust automation testing framework, code changes often lead to unforeseen issues, requiring repeated rounds of testing and rework. This inefficiency not only delays releases but also increases the engineering backlog, as defects pile up and must be revisited repeatedly.
- Performance Issues Affecting User Experience
User experience is directly tied to a product’s performance. Performance bottlenecks, such as slow load times and system crashes, are not merely inconveniences—they can drive customers away. Research indicates that a mere 1-second delay in page load times can result in a 7% reduction in conversions. When performance issues are not addressed promptly, they consume additional engineering resources as software development teams scramble to define and fix bugs that continue to reoccur.
- Limited Resources for Automation
Automation has the potential to streamline development processes, reduce manual tasks, and improve overall efficiency. However, many organizations struggle with limited resources—both in terms of budget and skilled personnel—to implement effective automation solutions. This constraint means that repetitive tasks continue to drain valuable engineering hours, delaying the resolution of critical backlog items.
When the above backlogs are not addressed effectively, they can result in missed market opportunities, decreased competitiveness, and ultimately hinder overall business growth. This is the reason that many organizations nowadays have come to the solution of hiring on-demand engineering teams to minimize their development backlog.
What is the On-Demand Engineering Team (Backlog Team)?
An on-demand engineering team, often referred to as a backlog team, is a specialized group of professionals that businesses can tap into when faced with a surge in their development backlog. Unlike traditional hiring methods that involve lengthy recruitment cycles, on-demand teams provide immediate access to skilled professionals who can address critical tasks, streamline workflows, and accelerate project completion.
How Does the Team Work?
The team works as an extension of your existing team. They focus solely on backlog items and urgent development needs, ensuring that your in-house staff can concentrate on strategic initiatives. By integrating with your current processes and leveraging Agile methodologies, the backlog team quickly aligns with your project goals and begins delivering results.
Characteristics of a Backlog Team
- Scalability: These dedicated software development teams are designed to be flexible, allowing companies to scale up or down depending on the project requirements. This flexibility is crucial when facing fluctuating workloads.
- Expertise on Demand: Backlog teams are composed of highly experienced professionals who bring deep technical knowledge and industry expertise. This ready access to expertise means that businesses can quickly onboard, transfer knowledge, and work seamlessly with the internal team.
- Cost-Efficient Engagement: With on-demand teams, companies only pay for the services they need. This engagement model significantly reduces the overhead associated with traditional full-time hires, making it a cost-effective solution for managing the engineering backlog.
- Agility: They can accelerate development cycles by quickly addressing critical issues, improving test coverage, and resolving performance bottlenecks.
Benefits of the On-Demand Engineering Team
Adopting an on-demand engineering team can transform the way your business manages its development backlog. Here are the key benefits that make this approach so compelling:
- Faster Key Features Delivery
By targeting backlog issues with a dedicated team, companies can significantly reduce the time it takes to ship new features and fixes. The rapid turnaround is critical in industries where time-to-market is a competitive advantage, like the financial services sector. The accelerated development process means that businesses can capture market opportunities before their competitors.
- Backlog Stress Relief
Backlogs often result in a stressful work environment where in-house teams feel overwhelmed by the sheer volume of pending tasks. An on-demand team helps alleviate this pressure by taking on the extra workload, thereby allowing core teams to focus on strategic initiatives and high-value projects. This stress relief not only improves productivity but also enhances the overall morale of the team.
- Expertise on Demand
One of the most significant advantages of using an on-demand team is the immediate access to specialized expertise. These professionals bring industry-specific knowledge and technical skills that might be hard to find in a local talent pool. This expertise is particularly valuable when dealing with complex or niche challenges that require a deep understanding of specific technologies or regulatory requirements.
- Enhanced Focus on Core Competencies
By outsourcing the backlog management to a dedicated team, businesses can free up their in-house resources to focus on core competencies and strategic projects. This reallocation of resources not only drives innovation but also improves overall business performance. Companies can concentrate on areas that directly contribute to their competitive advantage while ensuring that the backlog is managed efficiently.
- Improved Quality and Consistency
On-demand engineering teams are often composed of professionals who have worked on similar projects across various industries. This cross-industry experience translates into higher quality outcomes, as these teams are well-versed in best practices and proven methodologies. The consistency in quality helps in maintaining a high standard of product development, ensuring that the final output meets customer expectations.
Use Cases of Backlog Team in the BFSI Industry
As the BFSI sector is one of the most dynamic and highly regulated industries, when it comes to digital transformation, companies in this sector often face unique challenges, including compliance, cybersecurity, and rapidly evolving customer expectations. A ready-built engineering team offers tailored solutions to address these challenges while accelerating innovation.
1. Streamlining Digital Transformation Initiatives
Digital transformation is a critical objective for many BFSI organizations. However, legacy systems and a significant engineering backlog can slow down the transformation process. By engaging an on-demand engineering team, banks and financial institutions can expedite the modernization of their IT infrastructure. This acceleration enables them to deploy new digital services and platforms more quickly, ensuring they remain competitive in a rapidly changing environment.
2. Enhancing Cybersecurity and Regulatory Compliance
Threats from cybersecurity breaches and stringent regulatory requirements are often key concerns of banks and financial institutions. An on-demand team brings in specialists who are adept at developing secure systems and ensuring compliance with industry regulations. This focused expertise is crucial for managing the engineering backlog related to security updates, compliance patches, and risk management systems, ultimately safeguarding customer data and maintaining trust.
3. Integrating Advanced Technologies
The BFSI sector is increasingly adopting advanced technologies such as artificial intelligence (AI), open banking APIs, and robotic process automation (RPA). These technologies promise significant improvements in efficiency and customer experience, but their integration often adds to the existing engineering backlog. On-demand engineering teams can quickly bridge the gap by handling specialized tasks associated with the implementation of these technologies. For instance, they can develop AI algorithms for fraud detection or implement RPA to automate processes seamlessly.
4. Optimizing Customer Experience
Customer experience is a critical differentiator in the BFSI sector. Backlogs can delay the roll-out of customer-centric features such as mobile banking enhancements, personalized financial advisory tools, or improved digital interfaces. An on-demand team can work alongside in-house teams to deliver these enhancements faster, ensuring that customers receive the best possible experience. This accelerated approach not only improves customer satisfaction but also strengthens customer loyalty in an increasingly competitive market.
5. Facilitating Agile Transformations
Agile methodologies have become a staple in modern IT and software development. However, transitioning to an agile framework can be challenging when an organization is weighed down by an extensive engineering backlog. On-demand engineering teams can facilitate this transformation by handling backlog items while in-house teams adapt to agile practices. This dual approach ensures that the transition is smooth, with minimal disruption to ongoing projects and operations.
How KMS Can Accelerate Your Backlog Clearance with an On-Demand Engineering Team
The more engineering backlog exists, the more technical debt that businesses need to face. By harnessing an on-demand engineering team, organizations can rapidly clear backlog and drive innovation without the need to expand their permanent workforce.
To help organizations minimize urgent backlog items and accelerate the development process, KMS Solutions’ proven approach to backlog clearance includes:
Immediate Project Kickoff: Eliminating Delays in Backlog Clearance
Generally, the traditional hiring, onboarding, and ramping up of new team members processes can take 3-6 months, significantly slowing down progress. At KMS Solutions, we eliminate this delay by offering an immediate project kickoff with pre-vetted, highly skilled engineers who have domain knowledge in Fintech and are ready to integrate into your team from day one.
We initiate an immediate project kickoff by conducting a rapid assessment of clients’ existing backlog, establishing strategies for prioritized tasks, and breaking down them into focused sprints.
Proven Tech Stack: Engineering Expertise that Drives Results
By leveraging the most in-demand programming languages for finance & fintech, our engineers can seamlessly integrate into the development environments of many banks and financial institutions worldwide. Our teams are also trained in Agile methodology best practices to align with your sprint cycles, ensuring continuous progress without disruption.
Additionally, our capabilities include the implementation of robust test automation frameworks that significantly reduce the time spent on manual quality assurance
Effortless Integration: A Seamless Extension of Your Engineering Team
Bringing in external teams often raises concerns about compatibility with existing workflows and development practices. KMS Solutions’ on-demand engineering team integrates seamlessly with your existing processes, ensuring smooth collaboration that minimizes disruptions.
Regulation Compliance: Meeting Industry Standards & Security Needs
For industries like BFSI or healthcare, regulatory compliance is a non-negotiable aspect of software development. Failing to meet industry regulations can result in hefty fines, security breaches, or loss of customer trust. KMS Solutions ensures that all backlog clearance efforts comply with relevant industry standards and security protocols such as SOC 2, ISO 27001, and GDPR.
Conclusion
In a digital era where innovation and speed are paramount, the persistent challenge of engineering backlogs can significantly hamper business growth. With mounting pressures—from outdated tech stacks and security risks to poor test coverage and limited automation resources—companies, especially in the BFSI sector, must require an on-demand engineering team to handle the technical difficulties.
KMS Solutions is dedicated to helping you overcome these challenges. Our proven methodologies, seamless integration with your existing processes, flexible engagement models, and commitment to continuous improvement make us the ideal partner to accelerate your development cycle and drive innovation. Contact us today for the special offer that we customize for your business needs only!
