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Strategic Planning And Selection Of Models For Offshore Development

By: Scott Allerdice Home | Computers-and-Technology | Software


An offshore service is a common phenomenon in the global village we are living in. It is a refreshing change fast gaining popularity. The experience of hiring offshore services is seen to be paying well and the visible advantages are the reason why most of the companies are opting for it.

Before hiring offshore services the scope of the project must be clear and defined. It is important to foresee if offshore software development is the answer to your needs or if only a certain area of your project would require the outsourcing services. Whenever the complete project or certain parts are send for offshore work it needs to be seen what exactly is the goal that you want to accomplish from sending it offshore and is the offshore strategy going to help you accomplish the results you are aiming for.

The goals can vary, mostly organizations sort these services either to save costs or when they do not have enough manpower or resources and when they want expertise that can bring improvement to the project. The cost factor is quite attractive luring many companies and businesses to opt for it as hiring offshore outsourcing means the costs automatically go down. Another advantage is that the offshore firm delivers its best because its reputation is at stake and it requires more projects therefore it tries to provide maximum client satisfaction.

There are offshore service models that vary according to the nature and scope of the project. Global delivery model is known by many names. It combines onsite, offsite on shore and offshore resources. It involves multiple platforms and global locations where work is distributed and managed. The offshore outsourcing is not limited to one location; in fact there are multiple service providers involved who work to provide clients with the best solution. Mostly it is the large corporations that prefer this approach.

Another model is the Hybrid delivery model in which there are onshore and offshore staff working on the same project. The local onshore site deals with the part of the project that demands interaction with the client and the offsite team handles the technical part of development. This model of delivery has proved to be the one that is most successfully being adopted specially by midsize service providers.

Global shared service model is also known as captive centers or offshore in sourcing. In this model the various operations of a multi-national are handed over to various service centers. These global centers are sometimes run as independent businesses.

Build operate transfer model is one in which the firm makes a contract with the offshore partner in which they build a shared services or offshore development center and operate it for a fix short-term period.

Offshore multi-sourcing is one in which multiple offshore suppliers provide their services. It helps companies to have services from different suppliers that does not allow monopoly of a single supplier and also provides company the added advantage of making comparisons and having the best strategy.

New business demands calls for business strategies that are smart and beneficial and in this regard offshore outsourcing is emerging to be quite successful. Its advantages lie in the careful selection of the right business model and strategy that gains the company the maximum results.



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