What are the main offshore development models?
No offshoring partner is exactly alike.
It’s not just their choice of location and hiring standards that have a profound impact on their offering, but the model of cooperation is significant too. While there are many different models, here are the four main models:
Project-based outsourcing model
- Time and material outsourcing
- Dedicated team extensions
- Offshore 2.0
- Project-based outsourcing
The traditional approach is where a service provider is assigned a project by a hiring company (such as deploying a new CRM or adding a new feature to an online store). The outsourcing provider then completes the project to spec and delivers the finished work to the client. While this has the advantage of being hands-off and flexible for the client, the standard of work is low.
Time and material outsourcing
A similar model to the last where the client has little visibility and oversight but with the benefit of no project cutoff points. Instead, the client pays for the time and materials used by the outsourcing partner. While often selected as a cost-saving measure due to the lower upfront fees, it often ends up costing more for ongoing engagements.
Team extensions
Sometimes called staff augmentation, this is the first from our list where you oversee the offshore team.
This requires more management on your side but provides greater visibility into the work and allows you to set tasks according to your changing priorities. Like the time and materials model, you pay based on how much time each employee spends on your work with a minimum bucket of hours required.
The main issue with this model is that you still don’t have control over your employees. They may be partially or fully reallocated onto a different project leaving you looking at a new set of CVs.
Offshore 2.0
Imagine your own team working the same as your local one, just in a talent hotspot so it’s infinitely scalable.
Congratulations, you’ve discovered offshore 2.0. This is our offshore model solution for tech teams that last. Instead of allocating people from a bench, we hire just for you and they become your employees.
This is one of the key ingredients to our approach. By hiring exclusively for you, you get superior employees who are heavily invested in your company. And you never have to worry about them disappearing onto another project. But that isn’t the end of our approach.
We handle all the hassles around your set-up, from regulations, legal requirements, equipment and workspace. Then we onboard them and instil your culture so they work as part of your team, not a separate entity.
Once they’re onboarded, they work in your systems and under your management while we handle all the headaches on the ground and provide ongoing engagement activities.
The results?
You get the best tech talent in the world, hired exactly to your spec, and working exclusively for you. And due to the quality of the work environment, they’ll stay on average 3x longer than local hires.
All of which makes it the perfect way to scale a development team.
Source: https://thescalers.com/offshore-development-model/
Advertise on APSense
This advertising space is available.
Post Your Ad Here
Post Your Ad Here
Comments