Development center for all type of applications

Offshore Development Center

When to Consider Setting Up an ODC for your Business?

The three most common yet crucial engagement models to set up an offshore development center are;
  • Fixed Cost Model / Retainer
The fixed Cost Model is one of the most simple and beneficial engagement models, ideal for small to medium-sized projects. In this engagement model, the cost is finalized, eliminating all the possibilities of any additional service cost or hidden costs.
The fixed cost model is most relevant for startups and SMBs as they often have a limited budget. Plus it provides the security of getting the project delivered on time (as everything is written initially on the contract).
Advantages of Fixed Cost Model
The client & the offshore development team knows the budget, prior.
Preplanning on project delivery and unaltered timeline.
Easy to monitor the status of software development
Little supervision is required by the client
Disadvantages of Fixed Cost Model
Rigid Terms
In-depth Planning
Note: The fixed-price model is also great for small projects with limited features and clear requirements i.e. MVPs and projects with limited budgets and definite deadlines.
  • Dedicated Team Model
It is a team-based model that consists of all the sources of technologies, architecture, and platforms. A dedicated team model is assigned to one project at a given time, which is great for developing some big volume or complex project.
It is for a long development process that lasts for a long time and requires a dedicated remote development team to complete a project.
Advantages of Dedicated Team Model
More value is added to the business model as expert professionals are added to the team.
Large retention rate improvements result in reducing the conventional attrition or challenges
The Dedicated development team core team model means fast modifications and maintains the flow of productivity.
Disadvantages of Dedicated Team Model
Inefficient for Short-Term Projects
Requires Carefully Planning
Requires a Considerable Amount of Time
  • ¬†Time & Material Model
Time & Material model is used when the total work scope is uncertain and cannot be estimated. Well, these kinds of projects cannot be assigned with a fixed price and dedicated team as the total scope is undetermined.
The volume of the work fluctuates as software development is in process. So, hiring developers on an hourly basis makes more sense. By choosing the time & material model, the client is charged for the actual amount of time and effort spent by the software engineers.
Advantages of Time & Material Model
Work is divided into short sprints, making delivery faster.
Clients pay an hourly rate, decided by both parties.
Clients can easily monitor progress on a daily basis.
Disadvantages of Time & Material Model
Uncertain Deadlines
Undefined Budget
Needs a lot of Management

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