What Types of Offshore Software Development Models Are There?

Looking to outsource your software development? With numerous options overseas,What Types of Offshore Software Development Models Are There? Articles figuring out the best offshore development model for your business can get confusing.

However, not all offshore models are created equal. Choosing the right approach can make or break your offshore success. So, how do they differ?

Don’t worry. We’ve got your back!

In this article, we’ll explore three standard offshore development models: the Fixed-Price, Time and Material (T&M), and Dedicated Team models. We’ll look at their pros and cons and how they operate.

Read on to get the know-how on which is best for your business!

The Fixed-price model

This traditional model remains popular for its predictability and simplicity. Here’s how it works:

Imagine you have a well-defined project with precise specifications, timelines, and budget plans. The Fixed-price dddd outsourcing model could be your go-to option. The outsourcing partner provides you with a fixed project cost upfront in this approach. This cost remains unchanged, regardless of the actual time and resources invested by the outsourcing team.


  • Costs are 100% predictable from the start
  • Zero surprises or cost overruns if requirements are locked
  • Simple to budget and get financial buy-in


  • Specs need to be highly detailed
  • Scope expansion is a project killer
  • Change requests can delay delivery and bust bus

What it’s best for

The Fixed Price model is ideal for well-defined, short-term projects with limited room for scope changes. It works well when you clearly understand your project’s specifications and can provide precise documentation. It’s not so great for complex software with shifting requirements.