Selecting the right kind of engagement model with your offshore programmers (and / or the company where they work) is the best way to ensure you get more dynamic engineers that will deliver your software with the level of quality you would expect from your own software engineers in the U.S.

Generally you want a model where you have more control over the programmer hiring process and the on-going management of the software development process. But you may have to trade-off control with your budget and ability to manage the software development process. Below are the six engagement models most commonly used.

Choosing the right offshoring engagement model is a key to your success

From left to right, each model is capable of handling an increasing level of resources and control.

Freelancers – complete control over the programmers hired, but you have to evaluate each one individually. It is common to hire several on a trial basis and even have them create the same software and then keep the ones that do a good job. Managing more than three freelancers at different locations and time zones is very challenging! Good for small projects for several months or longer if you can get the freelancer(s) to commit.

Body Shops – very little control over the programmers hired. This type of vendor is famous for giving you transactional programmers cheap, but without management or software development process. You have to tell them what to do and manage them yourself. At least they’re in the same room! Okay if you have the time and resources to manage your programmers from a distance.

Software Factory – or a vendor that bids on your software project on a fixed-price basis where you generally have no control over the kind of programmers that are used. Your specifications need to be as complete as possible and have a clear definition of what it means for your software to be finished. Some disreputable vendors will deliver some software for the first several progress payments and then drop you as a client if you make many changes or have no clear definition of what “finished” really means.
Yet, this is one of the most common forms of offshoring. Works well if you have a well-specified programming project and have the budget to try several

Offshore Development Center (ODC) – a vendor that gives you a dedicated team of programmers and you can usually participate in the interviews. You pay a monthly fee for each programmer and their activities are often managed by a team leader you also help select. Good for developing multiple releases of the same software application where consistency of the programming team improves productivity over time.

Build, Operate & Transfer (BOT) – like ODC but with an option to transfer your team of programmers into your own captive operation or offshore subsidiary in future, usually two or three years.

Captive Operation – most appropriate for larger software companies that are developing complex software applications and systems needing fifty software engineers or more. You have complete control (and responsibility) for the hiring and management of the programmers.

Accelerance services can help you with the more complex, rightmost four engagement models. Use Offshoring Jumpstart to find partners that will bid on your fixed price projects and / or build your ODC. Use Rapid Ramp-Up consulting for more complex ODC, BOT and Captive Operations.

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