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Software development outsourcing refers to an arrangement or a contract, in which an organization decides to engage a third-party software development company.
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Software Outsourcing Models
Software Development Outsourcing Software development outsourcing refers to an arrangement or a contract, in which an organization decides to engage a third-party software development company to effectively handle their software development project instead of utilizing their in-house team and resources.
Here are the top five software outsourcing models: Onshore Outsourcing Offshore Outsourcing Nearshore Outsourcing IT Staff Augmentation Managed IT Services
Onshore Outsourcing Offshore Outsourcing In onshore outsourcing, an organization outsources their development project to a third-party software vendor located within the same country. Though onshore outsourcing is costlier than offshore and nearshore models, it offers the advantage of geographical proximity to your business location and eliminates cultural and linguistic barriers. In offshore outsourcing, an organization outsources their development project to an external software development company located in another continent with a different time zone. Offshore outsourcing helps optimize your overall budget by letting you hire from a global pool of talented resources with hourly or monthly rates.
Nearshore Outsourcing IT Staff Augmentation Nearshore outsourcing refers to the practice of hiring a software outsourcing company that is located in a neighboring country of the same time zone. This outsourcing model saves your travel time and eliminates the linguistic and cultural barriers that affect communication. Team augmentation model implies the process of hiring external workforce on a temporary basis to quickly respond to urgent business requirements. Through staff augmentation, you can scale your internal development team in minimal time. This outsourcing model is highly effective for businesses facing a tight project deadline and skill shortage.
Managed IT Services Managed IT services is an outsourcing model in which the IT services provider is responsible for ensuring the stable work of your IT environment by maintaining and anticipating your software and IT infrastructure requirements. It frees your internal team to do work that’s specific to your business.