The onsite and offshore model is a mixed type of cooperation within software development projects. Customers collaborate with both in-house IT teams and remote teams. Developers’ work is coordinated by dedicated project coordinators or managers. This type of delivery model is often chosen by technology companies, start-ups, and SaaS companies that need to scale up their development process or find specific skills.

The onshore outsourcing model involves services or projects to companies or teams located within the same city or country as the client’s team, ensuring easier communication, cultural alignment, and similar time zones. In contrast, the offshore model entails outsourcing to companies or teams in different countries, often in regions with lower labor costs, which can offer significant cost savings but may present challenges in communication, time zone differences, and cultural disparities.

An onsite offshore team structure combines the benefits of both onsite and offshore models by having team members located both at the client’s location (onsite) and in a different country (offshore). The onsite team members work closely with the client to gather requirements, provide immediate support, and ensure effective communication and project alignment. Meanwhile, the offshore team handles the bulk of the development or operational tasks, leveraging cost efficiencies and specialized skills. This structure aims to balance the advantages of proximity and direct oversight with the cost savings and expertise available in offshore locations.

The onsite offshore software testing model offers cost efficiency through offshore labor, continuous productivity with round-the-clock operations across time zones, immediate feedback and better requirement understanding via onsite presence, scalability to adjust team size as needed, and access to a diverse global talent pool, combining the strengths of both local and remote teams.