Ultimate Guide to Choosing Offshore Software Development Models in 2022

Table of Contents

In the software industry, talented developers are getting scarcer by the day, competition is reaching an all-time high, and operational costs are skyrocketing. It’s not uncommon to find companies having insufficient funds to take up sizable software development projects in-house or struggling to fill super-specialized technical roles for their complex projects. One efficient way to overcome these challenges is to partner with an offshore software development company. 

When you have the right offshore software development company by your side, you can easily tackle complex projects that require specialized skills and high-quality deliverables while saving on development costs. The best offshore software development companies take the weight off your shoulders and leverage their expertise for your project’s benefit. 

Hiring offshore developers help optimize workloads, improve a product’s time to market, and reduce dedicated time on software development. Once you decide that your needs justify offshore outsourcing, the next step is to find what delivery model would best suit your business objectives. So, the offshore software development models can be divided into the following groups.

  • By Levels
  • By Business Models
  • By Service Models 

Offshore Software Development by Levels

1.1 Low-Level Outsourcing

Here, outsourcing of low-level solution coding and software delivery takes place. For instance, QA manual testing and test development fall under low-level outsourcing. Moreover, in this model, the customers enjoy low customer involvement while the outsourcing organization takes advantage of low customer engagement. The customer company handles product management here, while the outsourcing services provider oversees development and QA. 

1.2 High-Level Outsourcing

In the case of high-level outsourcing, the in-house team of the customer firm takes charge of product management. Also, it supervises the work of an outsourced QA team that designs and performs tests under the client firm’s watchful eye. On the other hand, the project management, solution, and test design are handed over to the offshore development center. Typically, architect-level software engineers control outsourced processes, developers provide approval for code design, and architect-level testers approve tests.

1.3 Complete Technical Outsourcing

As the name speaks for itself, in the complete technical outsourcing model, all the technical aspects are outsourced, from PRD interpretation, solution design, development, and implementation. In simple terms, technical outsourcing covers all types of technical assistance to clients. Be it the development of a one-page or multi-functional eCommerce website or a leading-edge application built using IoT, AI, or ML capabilities.

Offshore Software Development By Business Models

2.1 Fixed cost Model

The fixed-cost outsourcing model is one of the safest or low-risk models where the budget is fixed from start to finish, eliminating the possibility of hidden costs. It best suits projects with clear scope, pre-defined specifications, and timelines. And well-defined projects help outsourcing companies fully comprehend the client’s needs and resources. Therefore, the project success rate is high in this engagement model. 

2.2 Dedicated Development Team

The dedicated development team model gives you quick access to a vast pool of professionals dedicated solely to completing your project. It allows you to build your dream team of software engineers as you get the freedom to hire dedicated developers as per the skill sets of your choice. Besides, you get in-house-like control over each developer secured by various project management tools. 

Plus, you save on recruitment and administrative costs while cutting the unnecessary hassle of the long-lasting hiring process. Therefore, it’s fair to say that this team is the ultimate source of the technologies used, architecture, and code produced. 

2.3 Hourly Or Time and Material

The hourly or Time & Material model is suitable for complex projects prone to changes throughout project execution. In concrete terms, this model best fits projects where the volume of work is not fixed and is likely to change as the project progresses, but the time frames are pre-determined. That’s why the client is charged based on the amount of time and resources deployed on the project realization.

Offshore Development Models By Services

3.1 Project-Based

This remote development model is suitable for projects with well-defined resource requirements. So it is advisable to select an offshore software development company based on the technologies used in your project. But, if your project requirements are subject to change during development or you belong to a rapidly changing market, like payment processing, a project-based model is not the ideal choice for you. 

Project-based offshore development models come with benefits like faster time-to-market and cost reduction. This service model is worth considering if you have irregular and pilot projects with precise requirements and deliverables. 

3.2 Staff-Augmentation

As the name indicates, the staff augmentation offshore development model is suitable for companies that want to empower or strengthen their in-house technical expertise with the help of offshore developers. The best part about choosing this model is that you can engage these developers only at the time of need, all while maintaining direct control over these extended hands. 

Here, offshore developers perform routine development and testing while you remain in charge of the technical leadership and project management. These teams work under the ambit of the specified development model chosen by you and deliver results within the time predicted at the start of the project. Also, your augmented staff isn’t liable for the project’s success. 

3.3 Offshore Development Center

An offshore development center is a rational choice for companies that wish to cut development costs without compromising quality. To meet these objectives, the client firm chooses the offshoring company to set aside an expert team of dedicated offshore developers who will engage in only one project at a time. These offshore developers are managed entirely by the client company. 

This offshore software development model goes well with long-term projects with enormous work scope. The cost of this model relies on the technologies used and the number of software developers involved in the project. 

Wrapping Up

Whatever your project goals and requirements, whether maintaining quality, cutting development costs, meeting unique client’s needs or maybe everything, there’s a suitable offshore development business model for each case. 

Are you still confused about which business and engagement model suits you? Head to Capital Numbers! We are a leading offshore software development company, having delivered numerous offshore outsourcing projects successfully with ease. We are experts at determining which model will suit your specific business case. For details, don’t hesitate to book a call with our experts today!


Recent Awards & Certifications

  • World HRD Congress
  • G2
  • Dun and Bradstreet
  • ISO 9001 & 27001
  • SOC2