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Software Development Outsourcing Models Comparison

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Existek
Existek

The document discusses different models for software development outsourcing. It describes three levels of outsourcing based on the processes handled by the client or outsourcing provider: low-level outsourcing involves coding and testing outsourced while the client handles other processes; high-level outsourcing involves design and testing outsourced under client supervision; and complete outsourcing involves all development processes outsourced. It also examines outsourcing based on business models like fixed cost, dedicated resources, and hourly rates. Finally, it analyzes outsourcing service models including staff augmentation, dedicated teams, and project-based approaches.

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Software Development Outsourcing Models By 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 Estimated Scalable Fixed Price for Each Resource per Month Middle Not Set Gradual Situational Incremental or Intermittent Not 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 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
Oleg Feferman oleg@existek.com CONTACT US existek.com +380 98 680-03-70 Existek, s.r.o Pekná cesta, 19 Bratislava, Slovakia

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Software Development Outsourcing Models Comparison

  • 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