Offshore Engagement Model
SoftPros offers a number of engagement models to its clients. We can take up projects on Time and Material basis, on fixed cost basis and in several hybrid models. This gives our clients the flexibility to choose whatever option suits them best.
The objective of any engagement model would be to provide a virtual team to you while adjusting the level of commitment, level of control, investment required (both time and money) and the cost savings generated through offshore economics to optimum levels for the business.
Since each organization we partner with has unique requirements, therefore at Softpros we follow different engagement models for delivering our services. We follow the engagement models that are based on Fixed Cost and Time & Material quality management. The concept of Hybrid Model helps to evaluate the pros and cons of both.
To minimize the cost of the partner we also work on the concepts of BOT model. You can initiate operations and reach operating stability much faster than perhaps with an in-house effort.
Fixed Cost Model
After project review, we estimate the manpower requirements. Depending on the man-days required, a fixed cost estimate for the complete project will be quoted. With the fixed price engagement model, there is an agreement of cost between us and our business partner.
The predictability of your costs and schedule is well defined and hence there is minimal exposure to risk. In this type of model the more detailed the preparation, the smoother and faster the execution.
Time & Material Model
With the time and material engagement model, your costs and schedule will vary depending on your specific requirements and on the complexity of your project. This gives you maximum flexibility and also allows you to make substantial revisions to your project even as it is being developed. The objective of this model is to find the right solution to a specific business challenge, and not to rely on standardized package that may not work in the long run.
For a given situation in which, business challenge is difficult to understand and large customization effort is required then this may be the appropriate model for consideration. In this model the design of the solution is very flexible and provides you the benefit to accommodate changes in the requirement at various stages’ of the development life cycle.
The hybrid outsourcing model, also known as the dual-shore model, takes advantage of onsite and offshore services to deliver results to clients at reduced costs. Under hybrid model a local team stationed onsite with our business partner would manage the project’s program management office and handle the issues such as requirements gathering and user-interface development. The onsite team would control the defined portion of the project that required interaction with the business subject matter experts and software architects onsite. Meanwhile, the team based at the offshore development center would facilitates with the coding, testing, and bug fixing so work could be performed around the clock.
This model maximizes efficiency in resources and lowers down the costs. The hybrid model enables our business partner to directly interact with us through the onsite team and simultaneously enjoy the benefits
Some companies reject outsourcing to third-party vendors and instead opt to start their own local subsidiaries, a process that frequently is not as smooth as expected. Various obstacles such as legal, taxes, hiring, and management may be faced thru-out the set-up process. While some eventually attain a steady state, others struggle, and a few even close down their operations. The failures of these captive subsidiaries have led to the evolution of a new business model in the offshore service industry called as BOT model. BOT is managed in three phases:
We provide our business partner with a complete solution for building a presence in a particular country. We take care of all administrative and legal issues, from real estate, utilities, and permits, to computers, communications, and office supplies. We also provides the professional support staff and operating licenses to run functions.
We provide a comprehensive set of operational management services, from HR and staffing, to accent training, accounting, payroll, legal, facilities, and security. Our business partners are able to focus their management time on their core business rather than on operational issues.
The logic behind the BOT model: the offshore partner can initiate operations and reach operating stability much faster than it can with an in-house effort. BOT model provide our business partners with bottom-line enhancements and fully offloaded costs, risks, and ownership of the new venture. The risk of execution is minimized, and business partners can spend their money on core functions.