Offshoring has been a successful strategy for many startups to launch and develop into thriving companies. There are many success stories to prove that. However, not all startups that choose to go offshore eventually achieve their goals. And this is not because Offshoring is not suitable for them but because they do not often choose the proper model of offshoring engagement. In this article, we will detail five different offshore software development models. Each one of those is the embodiment of one Key benefit that Offshoring presents to you. You can examine them and see if this is a suitable model. Of course, there are other offshoring styles, but these are the main ones, and they can be a good starting point for your research and investigation process when you are preparing to go offshore.

Let’s examine the details.

#1 Fixed-Price Offshoring Model: You Have a Well-Defined Roadmap, Price Tag, and Time-Frame

Suppose you have a short-term project, or you need Offshoring only for a limited time for a bit of activity, for example, a small app development. In that case, the idea of hiring and managing a whole offshoring team might seem daunting to you. But, well, as we said, Offshoring comes in many shapes and forms.

When you are employing an offshoring agency, it is easy to arrange the collaboration of a team or a developer only for a limited time and for a fixed price. This model is prevalent as it can give a lot of clarity to both sides – all the requirements and expectations are laid beforehand. There is mutual agreement on both sides.

This model requires careful planning and estimating the resources needed before the project starts, which can be time-consuming. It can also be more expensive than the other options because of its lack of flexibility.

#2 Time and Material Offshoring Model: Startup Adventurers – You Start the Wheels Turning Even if You Don’t Know Where the Road is Taking You!

The fixed price model suits startups with a well-defined vision and plan. But suppose you want to take the first steps before you know the whole road and the details of your journey!

Sometimes you have a vision of your final product, but you are unclear about what it will take you to get there. The pathway is still to be defined. You also do not know how long it will take you from point A – the beginning of the journey, until the end – point B. Many startups that do innovations are like that.

The Time and Material Offshoring model, with its outstanding flexibility, is what will work for you. You get a team or a group of developers or experts to do things for you and pay for their time spent on the resources utilized. This hourly basis is very flexible and very agile.

You can take full advantage of the T&M offshore model, pay for the work done, and pay as you go ahead. You can make as many modifications to the requirements as you wish, and you can extend the duration of the contract as much as you want.

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#3 The Outsourcing-Offshoring Model – Augment Your Team Capacity for a Limited Time

If you are looking for limited-time frame solutions, you might have heard that Offshoring is not for you. And Offshoring has often been associated with significant investments and long-term planning.

However, with the outsourcing offshoring model, there is an excellent possibility of hiring an offshore team through an agency in the same short-term solution as outsourcing. If you need to complement your in-house team with a specific set of specialists, then this offshoring model is the best for your needs.

This model is very cost-efficient, and you get all the prices clear right from the start – the fees for the staff and the agency you hire to find your talents are all set from the start.

One of the drawbacks is that you need to adapt to different time zones of your talents, but an advantage is that the costs are lower than the usual outsourcing.

#4 The Traditional Offshoring – Dive into the Deep Ocean of Business

Companies choose traditional offshoring to extend their businesses in another country for longer. This can be a specific project or product they can grow abroad and enjoy all the advantages of an offshoring company – like the limited taxes and the high-quality personnel at lower prices.

Not all startups are ready for this model involves a long-term commitment. And this is the reason that they quite often fail if they choose this model right from the start. It requires research, planning, and experience with the other offshoring models.

This is why it is wiser to try first Offshoring with an agency that handles the stuff for you. This article offers a brilliant explanation of Offshoring and its many benefits.

5 #Offshoring with an Agency – Offshoring Styled Just for Your Needs

This is the wisest choice for many startups. Hiring your talents through an agency might seem expensive, but it saves you time, money, and energy. You need to find a trustworthy offshoring company with many startup success stories on its back. If you find one that uses your shoring techniques, your experience will be even more excellent!

Yourshoring is a variety of agency offshoring where everything about your Offshoring – especially the recruitment process is customized according to your mission, vision, values, and objectives. This means: you get the staff that resonates with your vibes! This drastically reduces the turnover of offshoring personnel by 70%.

Hiring an agency is beneficial for whichever option you choose because they are well-versed in the local culture and the niche of specialists you are searching for. That might be pretty helpful if you are at your first offshoring steps!

In Conclusion

Do good research beforehand before choosing the offshoring model that suits you best. It is wise to examine the stories of startups in your same niche and see how they do with Offshoring. Which model did they choose, and what was their strategy?

If your decisions are led by sound logic and a good amount of intuition, they will surely benefit you and your team.