Types of engagement are critical for a successful outsourcing venture.  By listening to our customers, we have learnt that a single business model is not suitable for everyone. From our years of experience and best industry practices we have come up with various engagement models.

Fixed Price Model

The client pays a pre-negotiated fixed price for the complete project, which is linked to well-defined deliverables. The project is executed on a fixed-price billing basis. To achieve a final fixed price, it may be necessary to proceed in incremental steps to initially define the final project.  The engagement may then be finalised on clearly defined final specifications, with a change control process built in. Payment is made during the course of the project against clearly defined milestones.  This has the additional benefit of adding a monetary value to project completion.  This is well suited if you have good clarity and understanding of the project from both the business as well as the technical aspect.  In our experience, the extra time spent up front on project definition and clarity is more than rewarded during project execution.

Time & Material Model

The standard time-and-materials method of work, based on actual time spent on the project and the resources used. This is typically monitored through weekly timesheets, review meetings and progress reports.  From the customer's perspective, you are always assured of getting what you need and paying for only what is needed.

Dedicated Development Center

A dedicated development centre is established as an extension of the customer’s software engineering facility is popular among customers who are looking at long-term gains from offshore outsourcing.  In this model VJIL reserves resources, equipment and infrastructure exclusively for the customer.  This model is normally used for a pre-determined minimal period of time, and allows the client to leverage the talent pool, the cost effectiveness of such an offering, and the local man management and project management from VJIL.  This is almost like having your own offshore business, but without the risks of establishing and managing your own company in an unfamiliar country.

Dual Shore Development Model

The Onsite-Off shore Model, also known as the dual-shore model, takes advantage of onsite and offshore services to deliver results to clients at reduced costs. One of the most popular to have emerged so far, this model maximizes efficiency in resources and costs. Ideally, 20%–30% of work is done onsite and 70%–80% is sent offshore, depending upon the criticality of the project. Its benefits include near 24-hour work cycles; the ability to structure and assemble teams with diverse, multiple skill sets; lower-cost resources; and the ability to quickly scale (up or down) depending on the requirements.

Captive Center Establishment (Your Competency Centre)

This is a further extension of the dedicated development centre.  The captive model means that the customer organization makes strategic decision to create its presence in the lower cost location and conduct work there as a part of its own operations. The activities are performed remotely, but they are not outsourced to the vendor. Thus the customer is able to retain full control and mitigate respective risks associated with intellectual property and other sensitive business information.