types of outsourcing models and how to choose between them

When you have money or can find good specialists, it makes sense to put together a development team in-house. Outsourcing works well for almost everything else. There are so many options with IT Outsourcing Models these days that it’s easy to get confused. Some companies operate in ” turn-key ” ways, while others offer to add their programmers to your team. Some will give you a Project Manager, while others won’t. 

Here are the different IT outsourcing models and how to choose the right one for your project. 

IT Outsourcing Models 

There are two main types of outsourcing models: 

  • Types of outsourcing based on location  
  • IT outsourcing models based on relationships 

The names say it all, so let’s take a closer look at both models. 

Types of Outsourcing Based on Location 

In location-based outsourcing, the main thing that decides where your team will live is how far away they will be from you. It can also be put into three groups: 

1. Onshore Outsourcing 

Onshore IT outsourcing is when the people you hire to work for you live in the same country. 

Even if your developers live in a different part of your country, the time zones won’t be that different. Your team will also be able to talk well with an onshore team because there won’t be any language or cultural differences. 

2. Nearshore Outsourcing  

When you hire a nearshore outsourcing development team, you send your work to countries close to where you are. 

In this case, the time zones will be a maximum of a few hours apart. When compared to outsourcing on-site, outsourcing nearshore may be less expensive. The possibility of requiring translation services due to a lack of a common language increases with distance from the place of origin.

3. Offshore Outsourcing 

Offshore outsourcing is when you give your project development work to someone or something in a country that is not right next to you. 

Depending on your chosen country, outsourcing work to another country can be very cheap. If you hire a good project manager and, in some cases, a good translator, you can make sure that your in-house and outsourced teams can talk to each other well. 

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IT outsourcing models based on relationships

Here are the 3 IT outsourcing models –

1. Staff Augmentation Model

Let’s say you need a specialist to improve one of the more complicated parts of your product. This is a one-time job, so it doesn’t make sense to go through a long process to find someone to work for a short time. 

Don’t even try. You can call an IT outsourcing company, and they’ll send you an expert professional for as long as you need. The specialist will be part of your team and work with you. This model is called “staff augmentation.”

2. Dedicated Team Model 

In a dedicated team model, you can hire a whole group of developers through an outsourcing company to do work you don’t want your team to do. 

The difference is that the outsourced team will work on separate projects and won’t need to work with your in-house staff. They will keep in touch with you through a project manager or someone with a similar job.

3. Project-Based Model 

If you select a project-based model of outsourcing, you will only have to be involved in the project development process during the handover & delivery times. 

How to choose the best way to outsource 

We’ve discussed all three of the most common ways for IT companies to use outsourcing. But you need to know the situations that will tell you which model to choose. 

Here are some ways to choose the best IT outsourcing model for your project below. 

  • How many materials you’ll need for the project.
  • The skills you’ll need to finish the project well.
  • The team’s ways of talking to each other must be straightforward.
  • The project length should help you decide which model to use.
  • Make sure you think about the way the outsourcing team works.


Keep this in mind when deciding which model is best for outsourcing your developers’ team. The data you’ve read will guide your decision. Each model has some advantages & disadvantages. Now, you should decide based on what you need. Always choose the best value for your money. 

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