:: azealon consulting ::

Which outsourcing model suits the current requirements?

Evaluation of current status and long term goals

Typical engagement model for our customers starting to outsource now is a fixed price model. It helps them evaluate if outsourcing works for them. For companies that have done this before, there are high-end models where the risk-reward ratios are much higher.

Fixed Price Model: If the client requirements give enough clarity with which a detailed specification can be made in advance, we give a fixed price estimate
Time and Materials Model: If the Scope Variance is very high, costing is done on the basis of time and material. Though variance is high on the scope front, effort logging using Time Sheets on a granular daily/weekly basis is made ensuring that the cost metric is within bounds
Offshore Development Center(ODC): If you need an extension of your development center with our engineers reporting into key members of your team, a per person, per month cost is calculated. Discussions are held with the client on the minimum hours of effective effort per person per month that are agreeable to both the client and 'azealon'
Build-Operate-Transfer(BOT): If your intent is to finally have your own subsidiary, this is the ideal model and the ODC model above will be the first step. Agreements are put in place on the transition and special focus is given to residual knowledge transfer
Revenue Sharing Model: If your game plan is to focus your budgets on new product lines, this is the ideal model. 'azealon' will work out an agreed framework using any of the models above. The 'cost' of sustaining the 'sunset' product and the revenue sharing agreements are made between the client and 'azealon'

Responsibilities

ODC Managed by Us: The 'Delivery' responsibility of the product/featurettes are with us
ODC Managed by You: The 'Delivery' responsibility is yours and the ODC is driven by a key member of your team
Your Subsidiary, Our Service: Infrastructure and recruitment channels are ours
BOT(Build, Operate, Transfer): Conversion to fully owned subsidiary from ODC
Revenue Sharing: Sustaining the existing 'sunset' product line is completely ours