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What is Onsite and Offshore Model? Hybrid Delivery Models in Software Development

by Irina Kravchenko

The choice of a delivery model can affect the success of the entire project. Our article is all around how the software engagement models operate. Let’s figure out the relationship between project success and practices and understand the pain points of project managers.

We will answer the question “What is an onsite and offshore model?”, compare onsite, offshore, and hybrid cooperation with outsourcing companies as well.

Onsite, offsite and hybrid delivery model | Diceus

What Is Onsite Delivery Model?

Onsite Delivery Model (onshore) is defined as a way of software development and delivery when vendors send their qualified employees to the client’s location. The vendor team continually interacts with the customer’s team members.

They collect information, develop, implement, maintain and support the project. One distinctive feature of the onsite model is that the tasks assigned by a customer are completed by the remote employees.

This type of engagement model is a perfect fit for short-term projects. Customers choose the onsite delivery model mainly for re-engineering projects with a repetitive scope of work. Another case is when customers have unclear requirements for the project.

The onsite model is the most effective in cases when the continuous interaction between the customer’s team and new experts is required.

Key Benefits of an Onsite Model

Customers use the onsite model when they need to migrate to the new technology or modify their legacy systems. The popularity of this model is explained by a certain number of the following advantages:

  • On-hand information. Both, a vendor and a customer, can get the first-hand information from their employees to learn about the current work onsite progress.
  • Face-to-face communication enables on-time detection of emerging issues and efficient problem-solving.
  • Effective communication. As there is no time and distance gap between both sites, there are almost no misunderstanding within a team.
  • Enhanced time to market. The product can be delivered faster.

What Is Offshore Model?

Offshore is a popular delivery model where the team is based on the offshore software product development company site. This delivery model is also known as outsourcing. Companies order software development from vendors outside their location.

However, you’re able to communicate with the team members via Skype, Hangouts, phone, etc. This way of software development is good for well-structured and planned projects with distinct SRS documentation.

Key Benefits of Outsourcing

Clients of Diceus company choose this way of cooperation with an offshore outsourcing software development company when their projects are expected to last for a long time. Major advantages of outsourcing:

  • Lower costs. It’s cheaper to outsource IT projects to countries with low labor costs.
  • Perfect outcomes. The quality of the developed projects can be higher thanks to the high qualification of the staff.
  • No hidden fees. You can get an accurate estimate according to the payment models offered by an offshore software development company.
  • Round-the-clock support. Typically, offshore developers offer 24/7 support services which mean you won’t suffer from the time differences.

Difference between onshore and offshore models | Diceus


You may like these posts:

Offshore Software Development Best Practices

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What is an onsite plus offshore model? A hybrid model

A Hybrid Model is a mixed type of onsite and offshore cooperation. This engagement model is one of the most successful models. Work is distributed between onsite and offshore teams. Typically, 20-30% of tasks are completed by the onsite employees and the rest is done by the offshore team members. These figures may vary.

Key Benefits of a Hybrid Model

The hybrid delivery model is good for the sophisticated products development, complicated and long-term IT projects. While enjoying the benefits of outsourcing, the client still gets an onsite team to address any queries or issues without the burden of managing a large-scale onsite team. Here is an example of the responsibilities distribution:

Hybrid delivery model | Diceus

The hybrid delivery model is often chosen because of the cost savings of utilizing offshore resources while reducing the total infrastructure cost (for the onsite team). Here are the benefits:

  • Direct communication
  • High effectiveness
  • Best resources
  • Cost-effectiveness
  • Best practices in resource management

The management and administration costs involved in maintaining both the onsite and offshore employees may inhibit many service providers from going for the Onsite-Offshore Model. Also, cultural differences between the onsite employees and offsite team members need to be managed effectively to get the best results.

How to Get Maximum Productivity From the Offshore Team

A lot of companies are offshoring their information technology tasks to countries with low fees. Main reasons for offshoring are cost reduction, entering a large labor pool, increasing international opportunities, improving product quality, and exploiting around-the-clock development.

But why do some offshore projects fail and how should they be set up in order to reach all the goals. How should an offshore software development project be coordinated to make a success?

A successful software development project meets the scope, has the expected quality, is deployed on time and does not exceed its budget.

In Diceus, we adhere to these principles. Accurate estimations are assured by the teamwork of business analysts, team leads, and project managers. They take qualified people and bring a team together according to a partner’s project requirements.

Our senior managers and business analysts have a strong background in software engineering. They follow all the steps of the software development lifecycle.

Onsite-Offshore Communication Best Practices: How to Communicate With Offshore Teams

According to the technical report “Improving offshore communication by choosing the right coordination strategy” by Matthias Fabriek, Mischa van den Brand, Sjaak Brinkkemper, Frank Harmsen, and Remko Helms, poor quality of communication leads to less knowledge exchange. Less knowledge exchange leads to lower success. Lower perceived success influences communication negatively.

Measure coordination

These coordination areas need attention: organizational structure, risk management, infrastructure, process, conflict management, team structure, and team organization. They are categorized into five main categories:

  • Standards. Standards include all methodologies, rules, dictionaries, procedures, etc. They are focused on delivering the right product (scope) with the right quality.
  • Plans. This category includes all schedules, milestones and other plans. They all are focused on delivering the product on time and within the budget.
  • Formal mutual adjustment is specifically focused on coordinating formal communication. This category includes the creation of hierarchies, the planning of formal meetings, etc. Delegation is also an important aspect that affects team performance over distance: people have certain responsibilities in the project or the process.
  • Informal mutual adjustment. Some small measures can be taken to increase the chance of informal communication between people.
  • Team selection. The knowledge and experience of all team members together influence the success of the project. Team’s maturity is defined by three dimensions: team technical competency (the task that has to be done), team motivation (the individual and the team goals), and distributed teamwork skills (the ability to cooperate in a distributed environment).

Who Is a Project Coordinator? Onsite-Offshore Coordinator Tasks

Project managers and coordinators are professional business analysts having excellent knowledge on how to make your startup or business grow with the proper software solution. They delve deeply into your business processes and generate the best-suited ideas for your project according to your needs and requirements.

Below is an example of the skills required to apply for the coordinator job:

Required Qualifications:

  • 4+ years of experience in full Software Development Life Cycle for managing systems scope and release objectives
  • 4+ years of experience working as a Java developer
  • 2+ years of Web Service / API development is REST and SOAP
  • 2+ years of Production Support experience
  • 2+ years of DB2/Oracle database experience
  • 2+ years of UNIX commands and scripts experience
  • 1+ years HIPAA EDI - X12 experience especially in 270, 276, 837, 278, 834, 820 transaction sets
  • 1+ years’ experience in Jenkins, XL Deploy, DevOps, J2EE Frameworks, JBoss Application Server, Agile

Preferred Qualifications:

  • Undergraduate degree or High School diploma/GED with 4+ year’s equivalent experience in the areas of IT Software Development and/or Support
  • Strong background in SOA implementation
  • WAS MQ/JMS/Rabbit MQ experience
  • IBM Websphere Transformation Extender (WTX) experience

How to pick up the best delivery model for your business?

Let’s sum up the advantages of the three models.

Offshore Model

  • Cost and time saving
  • A single point of contact
  • A minimum 4-hour overlap with the on-site team
  • Clear, responsive communication

Onsite Model

  • Face-to-face communication with teams
  • Maximum control and coordination
  • Reduced recruitment costs

Hybrid Model

  • Transparent project status and clear communication at all levels
  • In-depth understanding of each other’s working styles leading to long-term benefits
  • Optimized resources, quality, project, and process management
  • Good value for money

Diceus team can offer you any type of cooperation thanks to a great pool of talented and certified developers, designers and project managers. We have 7 years of experience in building projects from scratch and upgrading existing ones - we have built 150 projects for partners from 20 countries. You can always ask us to consult you about the type of cooperation you can have for your projects and help you get started with it to reach your business goals.


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