An Introduction to the Offshore Software Models

An Introduction to the Offshore Software Models

The trend of offshore software development began in the late 90s. Like any other newly invented system, the concept of outsourcing your work was questioned by everyone in the beginning. However, in today's global scenario, it has become an unspoken international rule of global business. Since it reduces the operating costs of organizations, it is now considered as an end-to-end solution to the world of IT and software development.

Today, more than 210,000 software development and web development projects are outsourced by American companies, like Cisco, Samsung, Oracle, etc. They outsource their software development projects to the countries with a strong reputation and lower costs, like India, Vietnam, Ukraine, etc. With the evolutions of software development outsourcing business, the offshore software models have also evolved.

What is an Offshore Development Model?

In a nutshell, an offshore software model is used to access the process and technology that need to be adopted for software development. With the changing economic scenario and traits of the business, it is vital to choose a flexible and transparent offshore outsourcing development model. Not only will it help the offshore company to deliver the project on time, but it will also benefit the client with the highest level of ROI.

What Is An Offshore Software Model?

If you’re in doubt about which level of outsourcing model is ideal for your business, you need to know the different types of offshore business models. In this article, we are going to tell the main aspects of the offshore software development models for outsourcing.

Various types of Offshore Development Models

Here are the most popular offshore software development models.

  • Fixed price model
  • Dedicated resource hiring model
  • Hourly/Time & Material model

Fixed Price Outsourcing model

The concept of the Fixed price of outsourcing model is great for small to medium sized companies. This particular offshore software model is one of the most popular methods of scaling the business up, especially for companies with low budgets. In this method, the budget of a project is fixed before the beginning of the project, which helps to decrease the real-time unexpected financial trouble. Since startups and medium-sized companies often run out of budget, this model ensures that they get their work done within budget and gives the assurance of never running out of the finance.

Dedicated resources hiring model

This particular model works slightly differently. Instead of a person, an exclusive team for software development works hard for the success of a project. Generally, Software Solution Company of a particular city takes care of the formation of the team and deploying them for the particular project. This team needs to directly report to the onsite team and connect with them when required. The size of the team varies from one project to another. The dedicated team is responsible for releasing massive projects at a time for the successful release of a particular product or service. The role of the team is not confined to delivering a project on time. The company is responsible for managing the entire system. They should support the team sitting onshore as required.

Hourly/Time And Material model

As the name suggests, this working model of software development or IT depends on the billing method. This method is widely used when you're not sure when it is difficult to estimate the total horizon of the work. Unlike other models of outsourcing, in this model, the employer himself is not aware of the duration of a project. Projects which are not long time based can be finished by following this particular work method. Obviously, in this case, a team is not deployable as the nature of the job is ambiguous. The amount of work can be increased or decreased as per the requirement of the project. The workload needs to be finished within the deadline. The real-time effort and dedication of developers get paid off by the employer to get the work done. Generally, software solution companies do not follow this outsourcing model as the work method is not suitable for them.

The Bottom Line

The above-mentioned offshore software models can help everyone to settle down for the system that can cater to their needs. If you are seeking the best offshore IT company, then fret not as one of the top IT Solution Companies in Vietnam, S3Corp can get you covered at any time. No matter whether you want to opt for outsourcing offshore companies to reduce the cost or enhance your efficiency, we are here to help you. Click here to discuss your project and get in touch with the best software developers in the world.