Government Engineering College Bilaspur Guided By :- Prof. Vishnu Prasad Verma Session :- 2023-24 Submitted By :- Pranjal Mahapatra (1014)
TABLE OF CONTENTS Introduction 01 Definition of Outsourcing. Types Of Outsourcing 02 Different types based on different categories Location Based 03 T ypes of location based outsourcing Relationship Based 04 Types of Relation-based outsourcing Contract Based 05 Types of contract-based outsourcing Colclusion 06 S ummary of Outsourcing
Introduction to outsourcing Outsourcing is the practice of contracting out certain tasks or functions of software development to external vendors or service providers. In software engineering, outsourcing involves hiring an external team to develop, maintain, or test software applications. Outsourcing allows companies to access specialized skills, reduce costs, and focus on core competencies.
Types Of Outsourcing Location-Based Relationship-Based Contract-Based
LOCATION-BASED OUTSOURCING In this type of software outsourcing, decisions are made primarily based on geographical and economic factors. For example, it would be much cheaper to outsource software development work to an external team in another part of the world. There are namely 3 subtypes when we talk about location-based software development hiring. Location Based
Location-Based Outsourcing ONSHORE OUTSOURCING In this type of outsourcing model, the outsourcing work is delegated to an outsourced team that is from the same country in which the existing team exists. ONSHORE OUTSOURCING Nearshore outsourcing involves contracting with a third-party provider located in a neighboring or nearby country to the client's location. OFFSHORE OUTSOURCING Offshore outsourcing involves contracting with a third-party provider located in a different country or geographic region from the client.
RELATIONSHIP-BASED OUTSOURCING Under this structure, various teams are formed based on the nature of the relationship between the client & the outsourcing firm. Specifically, determining whether the outsourced team is integrated as a component of the client's internal operations or functions as an independent organization is essential. There are namely three subtypes of this outsourcing type Relationship-Based
Realtionalship-Based Outsourcing STAFF AUGMENTATION Staff augmentation involves hiring personnel from an outsourcing company to enhance your in-house team's capacity and skill set. PROJECT-BASED Based on this relationship-based model, the outsourced development partner would manage & supervise the whole development work based on different project requirements. MANAGED TEAM In this outsourcing model, dedicated team of developers is deployed to work on a specific project requirement. This time would work for the client for as long as the services are required.
CONTTRACT-BASED OUTSOURCING In this type of outsourcing model, it is to be seen how the outsourcing company is paid and for what tasks it is paid. This can be through a fixed price or a flexible payment option, etc. There are namely two subtypes in the last category of types software development outsourcing. Contract Based
Contract-Based Outsourcing Alternatively, consider the time and materials model, where the outsourcing firm tracks resource use and bills you accordingly. While costs might exceed initial estimates, this model offers flexibility, allowing adjustments to meet changing needs without compromising app quality. This approach involves agreeing on a total price for a development project's scope, skills, and deliverables upfront, providing financial predictability and avoiding cost overruns. However, significant changes in project scope could still lead to additional costs. Fixed-price Time & Materials