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Basic Outsourcing Model

August 7, 2009
Models of outsourcing:
Onsite outsourcing model:

Based on the needs and requirements of the client, the design, development and test

teams are deployed for a short time frame at the client’s location.  The Onsite model is
helpful for those projects that are mission-critical, require proper and constant attention
and also need everything to be done in the client’s location.
Benefits Onsite outsourcing model:
1.Requirements not being defined at length
2.Dynamic changes in deliverables or requirements
3.Tough and Rigid deadlines
4.Constant need of support
5.Direct interaction with client
6.Moving across time lines
7.Mission Critical Projects
8.Product engineering-related services
9.Open-ended and iterative nature of project scope
10.Projects that are highly secured and confidential
Activities are:
1.Initial Study/Understanding the client’s requirements
3.Technology Assessment
8.Maintenance and Support
Offsite outsourcing model:
All design,development,testing activities are performed by company(vendor)
in an offsite location near the client’s site.
Benefits of Offsite Model:

1.Significant cost savings.

2.24/7 turn around of development efforts, if required.

3.Better resource allocation and easy availability of resources with various skills and specialization in latest programming technologies.

4.Process-Oriented development: Clients can focus on their core business objectives while we take care of the processes involved in design, development and quality control.
Offshore outsourcing model:

The offshore team of the company will work with the client to understand the
business requirements, define the scope, and control quality throughout the project
Benefits of Offshore Model :
1.Readily available, experienced resources
2.Potential for near round-the-clock capability to reduce cycle times
3.Capable of handling long duration and large projects
4.24/7 turn around of development efforts
5.Time-to-market with right cost
6.Project maintenance
7.Established business processes
Hybrid outsourcing model:
1.A combination of both onsite and offshore, is the best of both worlds.The onsite
team will directly interact with the clients and will serve as consultants, program managers
and developers, depending on project requirements. They will do requirement studies, design
and development, while interfacing directly with clients.
2.The offshore outsourcing team will interact only with the onsite team and will provide
additional crucial support,thereby reducing costs and implementation time.
3.The model allows for scalability and has enormous operational benefits.
4.Results in optimized costs and maximized efficiency
1.  In this model the service provider will have their center near to client¬タルs premises
and the job will be distributed between this offsite center and an offshore development
center located in a different country.
2. The offsite center will act as the mediator between the client and the offshore development
center. The task undertaken by each of the teams depends on the type of work as well as on
the facilities available in each of the centers and the facilities required to complete the
3.Usually, the offsite team handles 20-30% of the total work and the offshore team manages the
rest .
Tasks accomplished by the offsite team:
1.Collecting initial information from the client.
2.Analyzing the collected specifications of the project.
3.Planning and initial design.
4.Communicating in a right way, the complete specifications to the offshore center.
5.Testing/Checking before handing it over to client.
6.Interacting with the client on a regular basis.
7.Ensuring on-time delivery.
8.Helping the client in implementation and maintenance.
Tasks accomplished at the offshore development center:
1.Thorough and comprehensive design.
2.Successful Development of the project as per the detailed design.
3.Testing before handing it over to offsite team.
4.Providing technical and operational support.
Advantages of Offsite/Offshore Delivery Model:
1.Quick Response: Responsiveness to changes in client¬タルs requirements is faster on account of
the offsite center.
2.Clients get all the advantages of offshore delivery model.
3.The client has control on the development process up to a certain limit.
4.Also the cultural differences arising form the geographical differences between the offsite
center and offshore center need to be managed effectively.
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