What Types of Offshore Software Development Models Are There?
The Fixed-price model
This traditional model remains popular for its predictability and simplicity. Here’s how it works:
Imagine you have a well-defined project with precise specifications, timelines, and budget plans. The Fixed-price outsourcing model could be your go-to option. The outsourcing partner u https://kocuri-sendai.com/ provides you with a fixed project cost upfront in this approach. This cost remains unchanged, regardless of the actual time and resources invested by the outsourcing team.
Pros:
- Costs are 100% predictable from the start
- Zero surprises or cost overruns if requirements are locked
- Simple to budget and get financial buy-in
Cons:
- Specs need to be highly detailed
- Scope expansion is a project killer
- Change requests can delay delivery and bust bus
What it’s best for
The Fixed Price model is ideal for well-defined, short-term projects with limited room for scope changes. It works well when you clearly understand your project’s specifications and can provide precise documentation. It’s not so great for complex software with shifting requirements.
The Time and Material (T&M) model
With T&M, you pay hourly or daily rates for offshore developers working on your project.
Picture a scenario where your project’s scope isn’t entirely clear, and you expect changes or improvements along the way. This approach provides more flexibility, as costs are determined by the time and resources spent.
