Nearshoring delivery models

There are many types of nearshoring delivery models and setups. Selecting the right one depends on the needs and structure of the individual organization. In this article, we cover the three most common models and outline the pros and cons of each of them.

STAFF AUGMENTATION – TEAM EXTENSION

The "staff augmentation" model involves hiring individual consultants on a time and material basis. This is by far the least complex approach. This model has huge potential and many advantages for IT organizations that want to increase scalability while remaining agile and flexible. With this model, you gain rapid access to new skillsets, and are able to get started in less than 45 days.

COMPANY CONTROL
& OWNERSHIP
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SCALABILITY
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FLEXIBILITY
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START-UP TIME
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PRICING: TIME & MATERIAL

DEDICATED TEAM

This approach involves creating a dedicated team to work exclusively on a specific product, service or application. One of the great benefits of this model is that the team feels a strong sense of ownership of the specific project or product. You will still have a high degree of scalability within the team once it is set up and running. On the negative side, however, the complexity of getting started is higher with this approach compared to the staff augmentation model.

COMPANY CONTROL
& OWNERSHIP
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SCALABILITY
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FLEXIBILITY
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START-UP TIME
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PRICING: FIXED PRICE OR TIME & MATERIAL

MANAGED SERVICES

In this scenario, the vendor assumes all responsibility for a certain service. Based on a Service Level Agreement and a fixed price, the client ‘outsources’ the task to the vendor, who will then have full ownership of the service delivery. In general, this approach enables you to focus on your core business while the vendor assumes the risk, and providing you with a guaranteed outcome. On the downside, however, the managed services model is less flexible, and the start-up complexity is much higher because both parties need to commit to, negotiate and agree on the scope of the delivery.

COMPANY CONTROL
& OWNERSHIP
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SCALABILITY
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FLEXIBILITY
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START-UP TIME
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PRICING: FIXED PRICE

WHAT WE RECOMMEND

Regardless of the delivery model you choose, we can help, because we always tailor the service to fit your specific situation and needs.

In most cases, we find that it makes sense to start with a staff augmentation model, and then move towards a managed service later on. This approach will initially offer the most flexibility and scalability, and you will begin reaping the benefits of our nearshoring service very quickly. Lastly, once domain knowledge has been embedded in your teams, it will be much easier to transition to a managed service.

Staff augmentation

Dedicated team

Managed services

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