Top Offshore Software Development Models and How to Choose One

Introduction

With the business cycle running at top speed, business companies are constantly seeking newer ways of saving time, doing more in fewer minutes, and getting the product to the market earlier. Outsourcing software development companies is one of them to achieve software development. Off-shore software development provides many benefits like world-class talent pool availability, cost-benefit, and time-to-market benefits.

Yet, the selection of offshore software development services is complex because several different models are practiced. The most widely used offshore software development models and some recommendations for the best practices of selecting the best one to achieve your business goals will be discussed in the article.

1. Dedicated Offshore Software Development Team

The most common is an in-house or independent offshore development team. This category involves the offshore software development company providing an in-house or development team that will be exclusively dedicated to the client project. The teams of this category typically are integrated into the client's in-house team and work on the project.

Benefits

Concentration on Core Business: Outsourcing part of the development work ensures business organizations concentrate even further on core business activities.

Scalability: It is very easy to scale up and down the team according to a project's needs.

Access to Expertise: Offshore development teams will possess expert developers with different technologies.

When to Use

Most ideal for long-term relationships in which the client requires a tailored, full-time team of employees. Most ideal for firms who want to tap into high skill sets or create additional capacity without additional payroll staff.

2. Offshore Development Center (ODC)

Offshore Development Center (ODC) is a well-developed dedicated team model. Under this model, the purchased company purchases as an offshore development company and sets up an offsite center for remote development. It takes different projects to work by keeping the development process smooth and integrated.

Merit:

Increased Control: The customer has more control over the development process and can himself be the team head.

Cost-Effective: ODCs are cost-effective yet provide a whole range of development services.

Long-Term Support: ODCs are suitable for companies that require long-term development needs and would like to have an uninterrupted source of content.

When to Choose

Offshore software development outsourcing is suitable for big companies requiring an uninterrupted and constant supply of work on the development and having the infrastructure to manage a remote workforce.

3. Offshore Software Development Outsourcing

The offshore software development ODC model is the model where you outsource some part of your work or some part of the project to the offshore vendor for software development. It is different from the ODC model or dedicated team because, in this situation, you outsource a small part of the project to a specialist vendor.

Benefits:

Flexibility: You can outsource part of your work without hiring a full-time team.

Cost Savings: Only pay for what is received, it will be cheaper.

Access to Expertise: Outsource your development, and you gain access to skilled skills outside of your organization.

When to Use:

Ideal for small pieces of work or specialized skills for some aspect of your project, e.g., UI/UX design, testing, or security.

4. Fixed-Price Model

Fixed price is a form that requests offshore software development companies and clients to bargain on advance verbal project costs without any effort or time to complete the project. Fixed price will be suitable with high specification projects with clear specifications to detail.

Benefit:

Cost predictability: Fixed price has to cost since there is no cost hidden.

No Scope Creep: Since the scope is defined in the initial stage itself, there will be hardly any scope creep or additional cost.

When to Use:

It would be ideal if this model is to be used in small-size clearly defined projects where requirements are defined in the very first stage itself and no changes by iteration should be incorporated. 

5. Time and Material (T&M) Model

In the Time and Material (T&M) method, off-shore development teams are paid for actual time utilized and material utilized in producing software. The T&M method is a flexible method compared to the fixed-price method since additions and modifications can be done at any time during the project.

Advantages:

Flexibility: Project scope can be modified in the T&M method without re-negotiating the contract.

Cost Benefit on Dynamic Projects: If your project keeps fluctuating back and forth again and again, then the T&M model will be cost-effective compared to fixed-price.

Use When:

It is applied to those projects whose requirements are dynamic or unlimited. It provides flexibility whenever a client wants to change something or there is an iterative development process. Your success lies in the most appropriate model of offshore software development. 
 

Conclusion

The offshore software development company to whom you outsource sets the cost, time, and quality of your product. You might have an offshore development team, an offshore development center only, or outsource one part of the activity. Whatever the scenario, the freedom to choose what model best works for you is that you already have knowledge on hand regarding the experience of what your project demands. You know your project needs, and because of that, it is easy to choose a proper model.

Each development model is best and best suited for a specific type of project. Organizations must find their requirement before embracing the most suitable model—short-term, formal project or long-term, continuous development requirement. If you embrace the most suitable model offshore and with an offshore software development model, then you will be powerful enough to leverage outsourcing in the best possible manner and achieve your business objective.