In Onsite/Offshore (Hybrid) Delivery Model, the outsourcing work is distributed between the service provider’s onsite center and the offshore development center & thereby the client gets the advantage of both types of outsourcing models. It is one of the most successful and popular outsourcing models employed today by many companies. The distribution of work depends on the type of project. Usually 20-30% of the work is done by the onsite center and the rest is done by the offshore development center. Generally, the tasks accomplished at the onsite center include:
• Gathering initial information about the project through direct interaction with the client.
• Understanding the requirements/specifications clearly.
• Planning and initial designing as to how the project will go about.
• Interact directly with the clients to accommodate any changes, if there are any, so as to minimize/eliminate last minute changes.
• Execution/Implementation of the project in accordance with client’s expectations and making sure that the client is fully satisfied with the end results.
• Dealing with the client and managing partnership.
Tasks accomplished at the offshore development center include:
• Reduced service costs as compared with onsite development companies
• Man-hour efforts estimation
• Free to negotiate and choose appropriate skills to meet your project requirements
• Focus on your core business needs and project goals
• Full control over the project run, capability to manage it dynamically
• Transparent development workflow
• Regular task reporting
• Seamless communication with any team member
• Flexibility to synchronize working shifts with business hours in your company
• Modern communication technologies to regularly keep in touch
• Back transferred intellectual capital, tangible results
• Regular deliverables, high-quality services
• Privacy and confidentiality
• Protection of intellectual property rights and business relationship, if necessary.
Onsite/Offshore model is generally preferred in cases where the project is complicated and is expected to continue for a longer period of time. So the client will not have the burden of managing a large onsite team and at the same time can also avail of all the benefits of offshore outsourcing. Besides the client can get any queries cleared by interacting with the onsite team.
Hybrid model is preferred in software development outsourcing as the offshore factor results in huge cost savings as well as the total cost of ownership of the infrastructure and manpower involved is also reduced considerably.
Advantages of Onsite/Offshore Delivery Model
• Direct dealings with the client: Direct interaction with the client is possible through the onsite center. So no possibility of communication gap. Also the service provider gets a better picture of the client’s needs.
• 24/7 productivity: Round the clock continuous work cycle becomes possible by making the best possible use of the time-zone difference.
• Access to the most excellent resources: Client can have access to the best technology, skilled manpower and equipment possible made available to them by the offshore development center.
• Great cost benefits: Cost savings resulting from majority of the work being outsourced to the offshore development center where the resources are comparatively cheaper.
• Best possible management of resources: Usage efficiency of resources is highest with this model.
• Complete projects that will not fit into your current time frame. Move the overloading projects offshore and concentrate only on the projects you consider critical.
• Offload your systems maintenance in order to free up your local staff to address more important tasks.
The management and administration costs involved in maintaining both the centers may inhibit many service providers from going for the onsite/offshore model. Also cultural differences between the onsite team and offsite team need to be managed effectively to get better results.
