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Software Development Outsourcing: Choosing the Right Model/Partner

Types of Software Development Outsourcing

Outsourcing models can be usefully defined by how they align across these three attributes: 

  1. Location: Onsite/Onshore/Nearshore/Offshore
  2. Relationship: Staff Augmentation/Managed Team/Project-Based
  3. Contracts: Time & Materials/Fixed Price

Location-Based Software Development Outsourcing Models

Location-based software development outsourcing models are defined by distance. Where are your outsourced resources located relative to you?

Typical location-based outsourcing models include:

Onsite Outsourcing

Onsite, or onsite outsourcing, is defined as the outsourcing of services to a provider who will send skilled professionals to work in your office for a fixed period of time.

Although “onsite outsourcing” may seem like an oxymoron, it’s essentially outsourcing implemented onsite. (CoreTeams uses a variation of this model in our staff augmentation engagements, initially sending engineers on-site for three to four weeks to learn our clients’ processes and systems.)

Onshore Outsourcing

Onshoring, or onshore outsourcing, is defined as the outsourcing of services to a provider within your same country — but outside of your company.

Nearshore Outsourcing

Nearshoring, or nearshore outsourcing, is defined as the outsourcing of services to a provider in a neighboring or nearby country.

Offshore Outsourcing

Offshoring, or offshore outsourcing, is defined as the outsourcing of services to a provider in a more distant country.

Multisource Outsourcing

Multisourcing, or multisource outsourcing, is defined as the use of various simultaneous location-based outsourcing engagements from multiple providers.

Relationship-Based Software Development Outsourcing Models

Relationship-based outsourcing models describe the balance of ownership and responsibility held by the client and the outsourcer. The three primary relationship-based outsourcing models include and all these are covered in the CoreTeams Offerings:

Staff Augmentation Model

Staff augmentation models, place the majority of the responsibility on the client. In this model, you’re leasing workers from the outsourcing provider to assist with your internal development projects. You still own your projects from start to finish.

Managed Team Model

Managed team models, in which the client and outsourcing provider share responsibility for and ownership of development projects, agreeing on which responsibilities belong to whom.

Project-Based Model

Project-based models, place the majority of the responsibility on the outsourcing provider. Your outsourcing provider completes your development projects based on your requirements, owning the projects from start to finish.

Contracts for Software Development Outsourcing

Now let’s cover those all-important contracts that help to ensure you get the outcomes you seek. Businesses use two primary types of contracts when outsourcing software development projects — The contract types are:

  • Time-and-materials contracts, which bill the project at an agreed-upon rate based on actual resources used and time spent by developers.
  • Fixed-price contracts bill the project at a flat rate, regardless of the time spent or resources used.

Time-and-materials and fixed-price contracts both have advantages and disadvantages. The best contract type for you depends on the requirements of your specific project.

CoreTeams Softech Pvt. Ltd. is a prominent player in Software Development Outsourcing.

Utilize the tools given on the website to get in touch with us to get a Free quote for your Software Development Outsourcing needs by CoreTeams.