Hiring Offshore Software Companies In 2022? Here Are The Top Models To Pick From

Hiring Offshore Software Companies In 2022

Tech businesses face the pressure to constantly evolve their products and services to get to the top of the profit making pyramid. CEOs and business owners are always on the lookout for business strategies to have the maximum impact with borderline investment. 

Hiring offshore software development companies has been a successful business solution for enough time that there are no more doubts left on its sustainability. Although offshore development is not the “magic pill” to solve all enterprise issues, it’s the reliable one.

Reduced operational costs, no hiring hassle and maintenance of an in-house department, global talent access, multiple perspectives and much more, offshore software development companies have a lot to offer.

All the major players have been setting up their presence overseas and it is a fact that the offshore software development model is here to stay. So today, we’ll be talking about the best hiring models for offshore IT companies.


The global offshore IT industry has been around since the 90s. But it’s in the past decade, that its effectiveness and reliability has gone unquestioned and It is much easier now to hire offshore software development company. The major attraction of offshore IT development is the flexibility it offers in terms of hiring models.

The partnerships of onshore and offshore companies have proven advantageous for both ends. So in this blog we will talk about the two major bases of hiring offshore software development companies and their benefits.

Also Read: Why Is Software Development A Need For Businesses In 2022

Offshore software development business models

How an offshore asset adds value to your business must be clear and this section highlights how IT companies do the same for clients. Hiring based on business models include the details of services provided by the offshore company, the compensation and how they deliver the product.

Every business model has its benefits and drawbacks to cater all clients of varying needs. We will discuss the benefits to shatter any misconception left against offshore development services.

As per your immediate or long term need, our offshore software development company in India partners with you. Among the various hiring models you can select the one that fits best or combine two models for a more customized solution for your particular projects.

We follow these engagement models to develop a clear understanding of client’s needs and make it easier for businesses to outsource their requirements. The three business models of hiring are time material, fixed cost and dedicated resources. Let’s discuss them in detail.

1. Time and material

Time and material

As it is evident by the name, the first hiring model is based on the execution time and resources required to complete the project. We make an accurate estimate of the working personnel, IT setup, project management resources, time and other factors that will be deployed during the project tenure. The project expense is decided based on the mentioned elements.

There are several benefits to the time and material engagement model.

  • This model is especially beneficial for projects with precise scope. If you want to manage the project and overlook all the aspects of development, this is the best fit.
  • The clients are more involved in the decision making process.
  • This model is perfect for complex projects which include design changes and needs the best quality.
  • Time and effort model offers more flexibility and modifications as the project moves along.
  • Developers work in close connection with the clients.
  • This model is rapidly scalable and open to new needs during the project development.
  • Faster development and closely monitored time management ensure deployment on the fixed timeline.
  • Time and material allows for easy budget adjustments and cost control methods.
  • This model builds trust between the vendor and client as they work in close environments with each other.

Also Read: How To Choose The Right Agile Methodology For Project Development?

2. Fixed cost

Fixed cost

In this model the offshore company and client agrees on a price before the start of the project. The price and project quality is agreed upon for the entire development duration from start to finish. This model is ideal for businesses looking for low risk investment with clear project scope. The benefits include the following:

  • Price is fixed in the beginning so clients know what they are investing and the services they will receive till the end.
  • No hassle in the middle of the project as the final price is already agreed upon.
  • Clients need not worry about hidden payments or extra charges as they pay only the predetermined sum no matter the time and resources the offshore company needs for the project.
  • This model offers a higher success rate because the offshore partner is bound to deliver the promised quality with consistency on time and for fixed cost.
  • Fixed pricing helps clients get a clear estimation of the expense right from the beginning.
  • Best for small and medium sized projects with clear scope and quality
  • All the aspects along with pricing are also predetermined, like the approach, no.of developers, the total team strength, features of the product, etc.
  • Faster development and minimum time because there are minimal changes in the development process.
  • Clients don’t have to be involved as all the aspects are pre decided. The project is controlled by a project manager.

3. Dedicated development team

Dedicated development team

This is the most preferred hiring model in the offshore business industry. In this model, the client hires an entire team dedicated to their project only i.e. they work for one client at a time to meet their requirements. The client can hire resources as the project demands.

This dedicated team acts as a virtual part of your in-house team and employees. It’s like a business branch offshore working on your projects specifically.

Also Read: How to Choose the Best Web Application Development Company?

The offshore dedicated team guarantees the project success. It is the most reliable and efficient offshore hiring model for software development companies.

  • The clients can choose the skill set of developers and build a team for the specific project.
  • The offshore company signs an NDA protecting the intellectual property of clients.
  • The client has full rights over the products developed.
  • The onshore company manages the project while having an offshore team working on it.
  • Due to the geographics, the client gets an international perspective and multiple feedback on the project.
  • A project manager leads the project to ensure code quality, providing regular updates to the client with focus on timely completion.
  • The in-house and offshore teams work in close collaboration coordinating schedules, workflows and deliverables.
  • This model is an inexpensive alternative to hiring and managing an in-house team.
  • The dedicated team of offshore software developers works on your project alone. Their focus is not divided like a freelancer working on multiple projects at the same time.
  • Continuous development, improved scalability and faster workflow are the prime merits of dedicated offshore projects.
  • The dedicated team model is best for companies with large projects looking to cut operational costs on in-house teams and ensure product quality.
  • You can hire the top global talent for much lower and competitive prices.

Ready to hire your offshore software team in 2022?

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This blog was focused on the best hiring models for collaboration and building trust among the vendor and clients. Hiring offshore software development companies brings more customer satisfaction and amplifies your efforts to digitize your business products and services.

Our offshore software development company in India, Imenso Software works with high transparency and customer satisfaction for clients across the world. To reap the benefits of investing in technology with minimum risks at low prices get more information on pros and cons of all the service models, just contact us here.

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