Software Development Outsourcing Models Comparison

1. Software
Development
Outsourcing
Models
By Outsourcing

2. •BY LEVELS
•BY BUSINESS MODELS
•BY SERVICE MODELS
SOFTWARE DEVELOPMENT OUTSOURCING
MODELS ARE COME UNDER GROUPS

3. LEVELS OF SOFTWARE
OUTSOURCING
• Low-Level Outsourcing
• Complete Technical Outsourcing
• High Level Outsourcing

4. LOW-LEVEL OUTSOURCING
Product Management Development QA
• Low-Level Solution Coding
• Software Delivery
OUTSOURCED PROCESSES
• Manual Testing
• Tests Development

5. 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

6. COMPLETE TECHNICAL
OUTSOURCING
Product Management Development QA
• Product Requirements Document
Development
• PRD interpretation
• Solution Design
OUTSOURCED PROCESSESIN HOUSE PROCESSES
• Solution Development
• Solution Implementation

7. 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

8. OUTSOURCING BUSINESS
MODELS
• Hourly/Time & Material Model
• Dedicated Resource Hiring Model
• Fixed Cost Model

9. 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

10. 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

11. 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

12. 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 Estimated Scalable
Fixed Price for
Each Resource
per Month
Middle
Not Set Gradual Situational
Incremental or
Intermittent
Not Assigned
Fixed Price per
Hour
High

13. OUTSOURCING SERVICE
MODELS
• Staff Augmentation
• Project-Based
• Dedicated Team

14. 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

15. 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

16. 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

17. 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
Client
Product 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

18. Oleg Feferman
oleg@existek.com
CONTACT US
existek.com
+380 98 680-03-70
Existek, s.r.o
Pekná cesta, 19
Bratislava, Slovakia