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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