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Outsourcing Models :

Onsite/Offshore Model:

Under this model, depending upon the specific set of services involved and scale of the project, the vendor firm will put in place a combination of onsite and offshore technical resources that will become a virtual extension of the customer's team. On an average, 70% of the total effort is done offshore and 30% at the customer's site. Typically, an onsite coordinator or a small team from the vendor firm will be located at the customer's site to synchronize between the offshore team and the customer.

Pure Offshore Model:

Under this model, the entire project is carried out offshore. The vendor company will not have any onsite presence. The customer interacts directly with the offshore team.

 

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Offsite/Offshore Model:
 
In this model, the vendor company will have it's own office close to the customer's site. A team of engineers from this office will
coordinate between the customer and the offshore team.
The offshore model has by far been the most successful one among the various models that have emerged. The simple reason being that unlike in the case of the offsite/ offshore model, you have the satisfaction of coordinating and discussing requirements and deliverables with an dedicated member of the team in the US, while at the same time enjoying the offshore cost advantage.

OFFSHORE DEVELOPMENT METHODOLOGY:

The offshore development process usually begins at the customer's site. A team of analysts led by a Project Manager carry out the initial requirements definition and analysis in consultation with the customer. The design, development, and testing phases are carried out at the offshore development center with a larger team. The acceptance testing, implementation, installation, and user training are done at the customer's site. On an average 70% of the total effort is done offshore and 30% onsite.

An outline of steps involved in the offshore model is:

1. A Project Manager from the development team and a Project Coordinator from the customer's end are nominated to oversee the entire project.

2. To start with, the Project Manager and a team of engineers from the vendor firm visit the customer's office to establish rapport with the Project Coordinator, discuss, understand and document requirements, establish communication protocol and finalize reporting format and frequency. It is absolutely necessary that the Project Manager and his team gain an in-depth understanding of the requirements and communicate the customer's vision of the application back to the offshore center.

3. Once the initial requirements have been understood, the customer's design approach, development and testing standards and norms for acceptance, if any, are studied. A detailed project plan that entails the resources for the project, duration of the project, milestones and deliverables to be achieved is prepared.

4. While the Project Manager and the majority of his team return with the above information and prepares a project prototype, architecture and detail design for the customer's approval.

5. Once the customer has signed off on the requirements and prototype, the core development team gets going on the work. Constant interactions between the project manager and the onsite coordinator enable quick clarification of any doubts.

6. Upon completion of the project, the vendor team will carry out the implementation and installation of the project at the customer's site.

In certain cases, some amount of preliminary design is completed onsite during the Project Manager's visit. Subsequently, the development and testing take place.

In many cases, the various steps mentioned above overlap, compressing the total time. The project as envisaged could include onsite installation and implementation support followed by offshore maintenance.



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