Offshore Engagement Models
Moving software development operations to a low-cost country is hardly a new concept. Since the early 1990’s companies have been searching for places in the world where they can tap into reduced development costs and a better business environment. They’ve off shored a myriad of activities and they’ve done it by
- Creating a captive center within their own organization; or
- Working with a third-party outsourcing services vendor.
Many things go into making a decision about the best offshore engagement model for your organization and closing on a software development agreement. iBoss Tech Solutions is focused on building long-term relationships with you and understands that you may or may not want an eventual set up of your own offshore subsidiary.
With this goal in mind, we provide the flexibility that best serves your unique business requirements with our comfortable software development engagement models, ensuring a successful outsourcing strategic partnership with us.
What is in it for you?
iBoss Tech Solutions offers a range of comfortable engagement models and works with you to find the best fit for your software development plans.
You have the option to select one of the pricing models:
- Time & Material
- Project based pricing or Fixed bid
- Build-Operate-Transfer
- Cost Plus Pricing
as well as combine one or more available models to suit the various phases of your projects.
Time and Material Based Engagement
| iBoss Responsibility |
Partner Responsibility |
|
Requirements Documentation |
| Logical Design |
| Physical Design |
| Solution Architecture |
| Development |
|
| Unit Testing |
| Integration Testing |
|
User Acceptance Testing |
When the project scope, specification and implementation plans cannot be precisely defined at the outset or requirements change dynamically during the project implementation process, the Time & Material model provides the flexibility of varying the size and workloads of the development team assigned to your project, while optimizing time and costs. Under the Time & Material option, iBoss Tech Solutions offers its skilled resources and the development effort is billed at the end of every month based on the pre-negotiated and a mutually agreed hourly rate. This engagement can go from a few months to several years.
Hence, the total project cost is determined by the amount of time and resources expended and the actual effort towards the development.
What is in it for you?
The Time & Material model offers you a high degree of flexibility to alter specifications, accommodate unplanned activities rapidly, and adjust project resources based upon your evolving requirements throughout the software development process.
Unlike many other offshore service providers, we also provides you with the flexibility to switch to the Fixed Price model once the project scope becomes clearly defined and the requirements are firmed up.
Project Based or Fixed Bid Engagement
| iBoss Responsibility |
Partner Responsibility |
|
Requirements Documentation |
| Logical Design |
|
| Physical Design |
|
|
Solution Architecture |
| Development |
|
| Unit Testing |
| Integration Testing |
|
User Acceptance Testing |
A Fixed Price model is viable for projects with well defined requirements and schedules. When your need is clearly specified in sufficient detail, we will estimate the project scope and complexity, and provide a project delivery schedule along with a fixed price for the complete software development.
Under this business model, we ensure quality delivery of the final product within a pre-scheduled timeframe, and you pay a mutually agreed fixed price for the project implementation.
What is in it for you?
It allows you to determine exactly the project budget in advance. However, in comparison with the Time and Material model, a fixed price model tends to be less flexible for managing changes and additional features requests. Any requirement changes or new feature requests occurring during the project implementation process will cause a re-negotiation of the delivery schedule and price.
The Build-Operate-Transfer (BOT) model
BOT (Build-Operate-Transfer) means that you will have a right to own the facility, while we build the facility, hire the employees, get the operations running for a predefined period of time (usually a period of 3-5 years) and hand over the operations to you after this period.
Thus the BOT model gives an opportunity to you to get your Offshore Development Center (ODC) built and operated as per your specific needs and also lets you set up the processes in various stages to suit your particular business needs. This staged process will help you to evaluate the risks involved and also help you to check the feasibility before investing in a full-fledged manner. This model offers the right to you to acquire the operations of the offshore development center at the end of contract period, if you desire so.
What is in it for you?
Along with an opportunity to capture market share rapidly and access best in class skill-sets, a BOT models offers an advantage of not getting distracted while setting up a new venture and being able to continue to focus on your company’s core competency areas.
It conserves your capital expenditure through cost effective outsourcing during the initial period of build out and setting operations. At the same time, it reduces the operating risk and gives you the ability to launch a complete end-to-end solution in a short duration.
This Model is also known as the “open-book" pricing. In this model, you pay iBoss for the actual cost of the services used plus a markup or profit margin. This is a hugely popular model in outsourcing arrangements. This is also very frequently used as an interim contractual measure and is ideal for efficiency deals.
What is in it for you?
You get complete openness, no hidden fees, no hidden agenda’s, together with a team playing atmosphere.
