The project-based model has a clear delivery timeline and standard testing and acceptance procedures. Project requirements are defined up front to fix costs and schedules and reduce the risk of budget overruns. The project-based model works best when the project terms are well defined and clear and the project scope has been finalized. This model is not desirable when either the project specification or scope is a “work in progress.”
Time and material
The time and material model is well suited when:
- Complex or evolving projects regularly update and change the project scope or specifications.
- New business or technology ideas might redefine the course of product development.
- Projects have a crucial time to market deadline.
- Short development assignments or change requests.
The staff augmentation model may be applied when:
- The company has been looking without success for a developer with some specific programming language or software skills.
- Developer with target skills is cost-prohibitive for the company.
Offshore Dedicated Team
An Offshore Dedicated Team (ODT) model offers exclusive full-time dedicated resources on a long-term basis. ODT is customized to the customer’s requirements, practices, and culture and operates as an extension of the in-house staff. The ODT model sets the customer free from such problems as incorporation, recruitment, office lease, infrastructure overhead, and maintenance. Using an ODT, a business can reduce development costs up to 50%, get access to specific skills, gain better control over the entire development process, achieve easy scalability, and have the accumulated expertise transferred back in-house.
An ODT’s operation time is normally six months or more.