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How to Choose the Best Engagement Model to Build Your Offshore Development Team

How to Choose the Best Engagement Model to Build Your Offshore Development Team

According to Statista, around $288 billion has been spent globally for IT outsourcing services. Moreover, according to a Deloitte survey, 53% of businesses outsource their IT functions. Also, as per another IT sourcing report, small businesses invest 6.1% of their IT budget in IT outsourcing, while mid-sized firms invest 4.6% and large-sized businesses invest 7.4%. The reason for these staggering figures is simple: Due to the sheer amount of benefits of outsourcing, it is highly popular across industries. It can help you reduce and control expenses, accelerate company transformation, reduce the time to market, improve your business or focus, and more. However, choosing a quality IT outsourcing provider and, most importantly, the engagement model is not easy. And, when it comes to engagement models, you will often be offered the following three models to choose from: Fixed Cost Model Time and Material Model Dedicated Hiring Model Every model has its own pros and cons and selecting the one that is best suited for your needs requires thorough analysis and knowledge. So, to simplify your decision, we will go through all three types of models with all the information you need to know about them in this article. We will thus define each model; explain when you should choose each model, and what the pros and cons are of each. So, read on. Fixed Price Model In this model, you first define the scope, requirements, and timeline and pay a pre-agreed fixed price for the final product. It is straightforward with zero or little external dependencies. You Should Choose the Fixed Price Model if: You have a short-term project, The project description is well-defined with...
Tips for Hiring Offshore Developers

Tips for Hiring Offshore Developers

If you are looking for ways to save up funds for the development of your company, increase operational capacity and free up your key staff to work upon more important tasks, offshore outsourcing could be the bang for your buck! Offshore developers can help you save money and get your work done quickly. Making your work go offshore is different than outsourcing. Offshore Vs. Outsource Often, the terms offshore and outsourcing are used interchangeably but subtle differences exist. Outsourcing is when your compadecides to hire someone to do some work within your own country. If you hire an online contractor or agency to work on a project within your own country, it’s outsourcing. When a company obtains its services or products from outside the country where the company is established, is termed as offshore outsourcing or simply offshore development. The low cost services offered by countries like India is why companies love to offshore telemarketing services to that region. It spares them the high labour costs and is one example of offshore development.  Why Offshore? One of the prime reasons why any firm opts to offshore jobs is to reduce costs. A typical U.S. accountant would be paid an annual salary of $62,000 to do a particular job in a year; the same job could be done by an accountant in India for around $5,000 per year. This means that the organization saves $57,000 just by offshoring the job to a different country. If you can offshore the hands on projects, you can have your in-house team focus instead on the bigger picture and implement strategic decisions that can...