software development outsourcing models comparison

Software Development Outsourcing ModelsBy Outsourcing

•BY LEVELS•BY BUSINESS MODELS•BY SERVICE MODELS

SOFTWARE DEVELOPMENT OUTSOURCING MODELS ARE COME UNDER GROUPS

LEVELS OF SOFTWARE OUTSOURCING

• Low-Level Outsourcing

• Complete Technical Outsourcing

• High Level Outsourcing

LOW-LEVEL OUTSOURCING

Product Management Development QA

• Low-Level Solution Coding• Software Delivery

OUTSOURCED PROCESSES

• Manual Testing• Tests Development

HIGH LEVEL OUTSOURCING

Product Management

• Architect-Level Developers Approve Code-Design and Interpret PRD

• Architect-Level Testers Approve Test-Designs and Interpret PRD

• Outsourcing Team Design and Write Code under In House Supervision

Development QA

• Outsourcing Team Design and Perform Tests Under In House Supervision

OUTSOURCED PROCESSESIN HOUSE PROCESSES

COMPLETE TECHNICAL OUTSOURCING

Product Management Development QA

• Product Requirements Document Development

• PRD interpretation• Solution Design

OUTSOURCED PROCESSESIN HOUSE PROCESSES

• Solution Development• Solution Implementation

SOFTWARE OUTSOURCING LEVELS COMPARISON

Outsourcing

Provider

Project Management

Low-Level Codding

Manual Testing

Software Delivery

Manual Testing

Solution Design

Architecture Design

Tests Design Validation

Client

PRD Interpretation

PRD Development

Outsourcing

Provider

Project Management

Low-Level Codding

Manual Testing

Software Delivery

Manual Testing

Solution Design

Architecture Design

Tests Design Validation

Client

PRD Interpretation

PRD Development

Outsourcing

Provider

Project Management

Low-Level Codding

Manual Testing

Software Delivery

Manual Testing

Solution Design

Architecture Design

Tests Design Validation

Client

PRD Interpretation

PRD Development

Low-Level Outsourcing High Level Outsourcing Complete Outsourcing

OUTSOURCING BUSINESS MODELS

• Hourly/Time & Material Model

• Dedicated Resource Hiring Model

• Fixed Cost Model

FIXED COST MODEL

• Any Changes in the Scope of Work are Estimated Separately• Budged Changes Require Clients Upfront Approval

• Precisely Predefined Scope of the Project

• Straight Project Timeframes• Preliminary Payment• Predefined Technologies Stack

DEDICATED RESOURCE HIRING MODEL

• Long-Term Engagement• Open-ended Scope of Work Which Requires Iterative Development

• Scope of the Project is Not Exactly Predefined

• Scaling of the Development Team According to the Customer Needs in Particular Moment

• Fixed Payment for Resources on a Monthly Basis• Flexible Technologies Stack

HOURLY/TIME & MATERIAL MODEL

• Shifting Project Concept and Development Flow• Nature of the Project is Vague and Dedicated Developer cannot be Assigned

• Scope of Work cannot be Accurately Estimated

• Straight Project Timeframes• Small or Midsize Application That doesn't Require Allocated Resources• Client is Charged for the Actual Amount of Time and Efforts Spent by the

Development Team

OUTSOURCING BUSINESS MODELS COMPARISON

FIXED COST MODEL

DEDICATED RESOURCE HIRING

MODEL

HOURLY/TIME & MATERIAL MODEL

Work Scope Budget Technologies Stack

Time Frames

Dedicated Resources Payment Team Scalability

Predefined Predefined Pre-Planned Predefined Assigned Prepayment Low

Estimated Gradual Not Restricted Estimated Scalable

Fixed Price for Each

Resource per Month

Middle

Not Set Gradual SituationalIncremental

or Intermitten

tNot Assigned Fixed Price

per Hour High

OUTSOURCING SERVICE MODELS

• Staff Augmentation

• Project-Based

• Dedicated Team

STAFF AUGMENTATION

OUTSOURCING PROVIDER CLIENT

• Software Development Team Building• Inventory and Logistics Management

• Workflow Development• Work Process Supervision• Project management

• Deep Human Resources Management

• Initial Human Resources management

• Tasks and Responsibilities Distribution

DEDICATED TEAM

OUTSOURCING PROVIDER CLIENT

• Software Development Team Building• Inventory and Logistics Management

• Project/ Product Management Decisions

• Work Process Supervision

• Deep Human Resources Management

• Initial Human Resources management

• Low-Level Tasks Management• Process Quality Supervision• Project Management Assistance

• High Level Management• Product Roadmap Development

PROJECT-BASED

OUTSOURCING PROVIDER CLIENT

PROJECT-BASED

OUTSOURCING PROVIDER CLIENT

• Software Development Team Building• Project/ Product Management

• Deep Human Resources Management• Low-Level Tasks Management• Process Quality Supervision• Work Process Supervision

• High Level Management

• Overall Product Roadmap Development

• Set of Requirements for the Final Product

SOFTWARE SERVICES MODEL COMPARISON

Outsourcing

Provider

High Level Management

HR Management

Building Team

Inventory management

Workflow Development

Operations Supervision

Project Management

Task Management

Client

Product Management

Staff Augmentation

Product Roadmap

PRD Development

Outsourcing

Provider

High Level Management

HR Management

Building Team

Inventory management

Workflow Development

Operations Supervision

Project Management

Task Management

ClientProduct Management

Dedicated Team

Product Roadmap

PRD Development

Outsourcing

Provider

High Level Management

HR Management

Building Team

Inventory management

Workflow Development

Operations Supervision

Project Management

Task Management

Client

Product Management

Project-Based

Product Roadmap

PRD Development

Outsourcing

Provider

Oleg Feferman

oleg@existek.com

CONTACT US

existek.com

+380 98 680-03-70

Existek, s.r.oPekná cesta, 19Bratislava, Slovakia