Which IT Outsourcing Models Should You Consider In 2021?


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IT outsourcing used to be a saviour for the IT companies who have faced the absenteeism issues of their in-house development team. But today, this scenario has changed as IT organizations aim at a long-term partnership by aligning their business goals and sharing the risks. That is why IT businesses have started outsourcing their software development.

Furthermore, outsourcing software development can help you in many ways. Firstly, it will cut down the development cost. Moreover, it can help you to access the best talents across the world that can suggest you the latest technology, and help you to sort the quality parameters before project delivery.

Moreover, it becomes easy to make a proper choice when you keep the whole picture in the mind. This blog can surely help you with that. Here we will help you pick the most successful model to extend your team by discussing various types of IT resourcing models in detail.

Top 6 popular IT outsourcing models that you can’t miss

After witnessing the tremendous growth in the global outsourcing markets, startups and small enterprises have started using IT outsourcing to save time and effort in operation. Instead of building an entire in-house team, IT outsourcing services might be the best way for startups or non-technical businesses. So, here are the most successful models of outsourcing that are gaining popularity in the IT industry:

Standardized model

Whether you are a startup or a tech giant, you need to make numerous efforts to sustain the business in the constantly changing IT markets and for this, you need top-notch IT skills. However, building relevant skills and mindset for in-house development is a gradual process, but what if you can outsource the same thing to outshine your competitors in IT development markets.

Often companies outsourcing IT services look for quick business solutions and an introduction to a standardized model can make your project market-ready at a lower development cost within a short timeline. It should be noted that custom solutions can often be more expensive than standardized services, therefore later is suitable for smaller businesses or start-ups.

Staff augmentation model

In the staff augmentation model, you need to have a tech lead or a Chief Technology with sufficient professional experience and in-depth knowledge of IT development. Also, the staff augmentation model is essential for businesses that require specific expertise such as automated quality assurance, DevOps and android app development.

In-house software development takes a lot of time, especially if you’re looking for a person with non-common skills, say a Flutter developer. But with the staff augmentation model, you just have to contact your desired IT development company, look through the developers’ CVs, and interview them. This whole process is comparatively much faster than the long months of recruiting you may require to find the right specialists locally. Thus, we can say that staff augmentation is a successful model to extend your team.

Agile IT Outsourcing model

In the agile model of IT outsourcing, the whole development process is divided into small modules or parts. However, every part or module requires to undergo numerous regression tests before final integration and system testing. But if you follow the Agile IT outsourcing development model, you can save time by rectifying the minor errors in the initial stages of software development.

Also, the agile model helps the software developers to clearly communicate the challenges faced by them during the entire development process. This clarity of communication can help you to reduce the development cost by enabling you to make the timely completion of your project. Also, Agile’s consistent delivery cycles and client-centric approach allows software developers to deliver top-notch software in minimal time.

Time and material based model

In this type of IT outsourcing model, you will pay for the number of hours and the cost of materials. This model mainly focuses on the quality of the end product. Generally, the time and material based model is suitable for longer projects whose requirements are likely to change with the due course of time.

Furthermore, the time and material based model offer you an iterative approach to software development. Also, the IT development process is more transparent than other models.

The time and material model provides you with higher flexibility to create a user-friendly product. Also, you can run a discovery phase with the time and material based model to define a roadmap for your next project.

Project-based outsourcing model

A project-based outsourcing model is best for those companies that want to outsource the complete project to the outsource development company. Moreover, in the project-based outsourcing model, you do not have to worry about everything as the development company will take care of everything.

The project-based outsourcing model is a cost-effective model of IT development. In this model, you only have to pay a fixed price for the hours required to complete the project. That is why it is the best choice for companies who are looking to hire dedicated developers for a shorter period.

Dedicated team model

In the dedicated team model, the vendor provides you with a software development team that is only dedicated to your software development. Moreover, a dedicated software development team also comprises of testers, developers, business analysts, and project managers.

Apart from this, the major benefit of hiring a software development team is that it provides you with a team and a project manager. Thus, you do not have to bear the workload of development on your own. Also, you can easily expand the team members even in the middle of the project.

Since a dedicated software development team is managed by a separate leader and just tracked by your tech lead during the major deliverables, you can get more time to focus on the important things.


Every IT outsourcing model that is described in this blog is ideal and useful in its own way depending on your project requirements. So if you are looking for a moderate involvement then a dedicated development model is best for you. And if you want to work directly with software development along with extending your current team then the staff augmentation model is what you need. Apart from this, you can also consider a project-based outsourcing model if you want to work on a short term project.

So choose the best IT outsourcing model that is based on your project needs and also keep in mind the expertise and experience of your chosen development team as it plays a major role in the success of your project.

I hope this blog has provided you with all the relevant information about If you want to discuss different approaches to IT outsourcing and get some advice as to which model is the best for your current needs then you can reach us out at any time.

Shahid Mansuri
Shahid Mansuri co-founded Peerbits, one of the leading mobile app development company, in 2011. His visionary leadership and flamboyant management style has yield fruitful results for the company. He believes in sharing his strong knowledge base with leaned concentration on entrepreneurship and business. Being an avid nature lover, he likes to flaunt his pajamas on beach during the vacations.


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