Modern world is a changing global organism and only the most persuasive and intelligent people can handle the stress and bustle of everyday life. The information flows every day and without any hyperbole, it is capable of striking humans’ imagination. For the past three years, humanity has generated more knowledge than over its entire existence. This statement shows us how people can handle a huge amount of information nowadays.
The IT industry can manage quintillion of data. What tasks should modern companies accomplish? Systematization, analytics, and innovation. That is why there are dozens of programs that can minimize budget and increase capital. The correct use of this mechanism allows not only to modify efforts, costs, and capacity. It also saves time for the production of similar projects and the accomplishment of new ideas and efforts.
Project delivery method is the most familiar and widely used technique of the growing IT industry. This term is widely used in the IT sphere. Especially during the Covid-19 pandemic, which has completely changed the situation all over the world. Within this method companies can optimize the results in software development.
The onsite model
Onsite model is a widespread topic today. The onsite and onshore terms are used in many areas of software development. These concepts are also used in our everyday life: economics, geography, real estate. In IT context onsite means a method of software development in which specialists conduct activities at the client's website.
The result of this work is the alliance of the contractor's specialists and the employees. A team settled by the customer and the distributor should solve the extension of information, development and project support.
The onsite model has benefits, but also a serious number of negative aspects. The lack of the right management can create chaos. And as far as we are concerned, chaos is not the best way to turn out innovations, isn’t it?
The main advantages of the onsite model
The onsite model will perfectly fit your project if the end-user needs a quick and first-rate improvement to the existing systems. Or when you need a high-speed introduction of the new technologies. In such situations, this algorithm will be your trump card.
The main goal of the onshore type is to provide a simple and quick exchange of information. Starting with the global information clusters, which tell us the basics of the product, and end with a small message on current deals. All departments which are involved in the process can easily keep their fingers on the pulse during the project.
Sometimes a short negotiation can fix a big amount of future problems. Moreover, we shouldn’t underestimate face-to-face communication. Within this type of conducting business there would be no chances to miss something important during the working process.
The off-shore algorithm is about unique technologies, new opportunities and remote work. Outsourcing has a single point of concentration. Mostly, this point is the developer's website. Nowadays some products are made by people who may never see each other in real life. Let’s discuss the pros and cons of this model.
Communication between the full-scale team goes through commonly used messengers, video calls, ZOOM conferences or other communication programs. This is the right way to have a clear SRS documentation and project structure. The main advantage of the offshore model is to provide your company with the access to a large talent pool of specialists and resources. Successfully, with a much lower cost compared to the costs on the Motherland.
The gain of outsourcing
Outsourcing type of work organization became the most commonly used program in the world. Especially after the Covid-19 pandemic. Speaking of, this is the best and the fastest way to find long-term and large projects.
If you follow this algorithm, you will receive an unlimited number of specialists. What is more, you will be able to employ people based on your exact mission and priorities. You will have the opportunity to hire the best and most expensive specialists all over the world or you can hire qualified experts from countries with lower prices.
Fixed prices, partnerships and knowledge exchanges make this model systematized, financially safe, and easily controlled. The offshore model requires specific skills in marketing, communication and project management during the whole working process, but with the right leader and the team, the result will be perfect.
What is the difference between onsite model and offshore?
The difference between onsite and offshore models must be quite obvious on this part of the article. In case you were observant during the previous sections. Imagine you are an employer. You have two similar tools for raising a high-quality system of the work process.
Frankly speaking, the difference is hidden between the right working atmosphere and the communication inside your team members. By increasing the algorithm and setting KPI, you can choose the most appropriate type of model for your project.
With an onshore model, you have a check-list about yourself and a simple report of your work, and the client’s brief information. There is a big team of employees from both sides between you and the client. This way of communication creates a very close and friendly atmosphere with a high response rate.
The offshore model usually provides two managers — your project manager and the client's. These employees are responsible for interaction between your remote team and the customer's team. This will implement your best practices.
Hybrid model of the onsite and offshore model
No one has the right to set limits on your mindset. The main goal of the IT industry is to search the unknown paths and maximize the given resources. So do not hesitate to fulfill new ideas. They can lead to unexpected success and great results. This is how the hybrid model amereged.
The essence lies between the connections of the best aspects from both models. The mixing of working algorithms makes it possible to solve the most complex problems with diverse variants of achieving your goals and KPIs. A localized team with the outsourced specialists combined in the right ratio is the key for your projects’ success.
It is often 30 percent locals and 70 percent — remote employees. People in a stationary team are usually concerned with the accumulation of ultimate information and clients requests, planning, and setting up communication with the client. At this moment, the offshore team works with monitoring and step-by-step analysis of the product, its support, and solving local tasks according to given requirements.
The leading structure is just an example. You can calculate your own version for successful work or you can use one of the patterns provided by Google.
The main goods of hybrid model teams
First of all, the hybrid model combines all the benefits of the two primary models. What does it mean? More possibilities of soft regulation and mechanisms of managing the processes. What is more, you can create the opportunities to diversify cash costs and quickly regulate cash flows into the right directions. You can reduce the cost of infrastructure and local team maintenance costs by hiring telecommuters. If necessary, it will be quickly rebuilt for the development of infrastructure. Variety and flexibility are the main weapons in hybrid model teams.
How to find offshore teams?
Communication is the main key for being productive. It will help to develop a strategy or entrust this step to your team. Project manager should hear and follow correctly the priorities and motion vectors will be determined. Besides, the lack of communication leads to a decrease in the exchange of information. Reduced communication leads to a lower progress. A reduced sense of success negatively affects the atmosphere inside the team.
Thoughtful communication will reduce the distance between employees in different parts of the world and between management and the client.
The key to success is coordination. Without coordination project management will not acclimize to such a work model. To reach this, management must control everything: structure, risks, conflits, reports, the atmosphere inside the team, and its organization.
How to get output from the offshore team
The offshore team model is the objective reality of the present time. Moreover, the pandemic has shown that to successfully achieve good results and create unique and prospective projects.
The offshore team will definitely become a new way for your aspirations. First of all, you need specialists who can ensure a fast restructuring of the business and introduce a different attitude to work.
There are a lot of vital little things that can ruin your business. Among them are differences in time zones, cultural traditions, language barriers, different understandings of terms. All these points must be taken into account when starting a new project. And for these purposes it is better to attract professionals so you can get the most output of your offshore team.
Modern market and information technology give us incredible opportunities. Our goal is to be flexible and open to new creative ideas and solutions. We should be ready to realize various visions of the software products.
The onsite delivery model, also known as the onshore model, is a strategy used by vendors to deliver software by sending their trained personnel to the client's location.
Members of the customer's team are frequently in contact with the vendor's team. Together, they gather data, plan, design, implement, and support the project. One distinctive aspect of the onsite model is that outside employees carry out the tasks given by customers.
The onsite model works best when there needs to be constant communication between the customer's team and outside experts. The client's requirements can then be approved by outside employees at every stage of the SDLC.
A hybrid model (also known as an offshore onsite model) is a combination of onsite and offshore collaboration. This engagement model is one of the most successful models that many businesses use. The work is split between on-site and off-site teams. Typically, onsite employees complete 20-30% of tasks, with the remainder completed by offshore team members.
The hybrid delivery model is ideal for sophisticated product development as well as complex and long-term IT projects. While reaping the benefits of outsourcing, the client is still provided with an onsite team to address any queries or issues, eliminating the burden of managing a large-scale onsite team.
Many businesses are now offshoring their information technology to countries with lower wages. Offshore team meaning is typically perceived as cost reduction, entry into a large labor pool, increased international opportunities, increased service quality, and exploitation of around-the-clock development. However, almost all of these offshoring goals are frequently not or only partially met.
Tip 1: Concentrate on communication and coordination. Communication is the most important tool for bridging the gap between onsite and offshore employees and a client.
Tip #2: Coordinate and manage communication. Control is the act of adhering to objectives, policies, standards, and quality levels. Coordination refers to all project management activities that have an impact on communication.
If coordination is lacking, team performance and the end result will suffer as well. This is one of the primary reasons why offshore projects fail: project management is not adapting to the new offshore situation, which differs from a distributed situation in the home country.
Companies frequently hire coordinators to ensure proper coordination of projects developed using the onsite offshore delivery model. They may assist you in coordinating the work of various teams in various projects, such as in an onsite offshore testing model.
The onsite and offshore model is a hybrid form of collaboration in software development projects. A customer works with both in-house and remote IT teams. The work of developers is overseen by project coordinators or managers. This type of delivery model is frequently chosen by technology firms, start-ups, and SaaS firms that need to scale up their development process or find specific skills.
When continuous interaction between the customer's team and outside experts is required, the onsite model is the most effective. Outside employees can then approve the client's requirements at each stage of the SDLC. More information on IT engagement models.
The main advantages of the onsite-offshore hybrid model are cost and resource efficiency. Labor and associated costs, as well as infrastructure expenses, are reduced because the offshore team is based in a lower-cost country.
Front office offshore and onshore outsourcing are both negatively associated with customer satisfaction, implying that negative customer perceptions may be due to the firm boundary dimension rather than the geographic location dimension.
Scale effects reflect the fact that as offshoring costs fall, firms are induced to increase their production level. As businesses grow, they hire more people both at home and abroad.
- Unrealized cost savings are a risk.
- There is a risk of insecurity and intellectual property loss.
- Inadequate discipline in managing the vendor.
- Business knowledge is being lost.
- The possibility of vendor failure.
- Noncompliance risk.