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Published Date: March 15, 2018 |

The Outsourcing phenomenon is a relatively new one. A decade or 2 before ago very few were aware of the concept. All the jobs were completed in-house. But the multiple benefits that outsourcing brings to a business, including cutting of costs, lesser risk, streamlined work, timely project accomplishment, and expert handling of minor and major tasks related to project or job have made it very popular globally. Plus, outsourcing is also a rescue from over-burdening with job responsibilities, and some managers may even like it for the leisure time it provides.

Outsourcing within the IT business segment is quite common. Software development, the creation of new applications, online marketing and other jobs tasks and projects are frequently outsourced. No matter what business engagement model you choose, it is important that the vendor creates value in a cost-effective way, and least efforts are required. As there are multiple and different kinds of engagement models available towards outsourcing, it is important for you to choose one that is perfectly in line with your project. Other challenges include communication gaps, fake commitments, cultural differences, lack of flexibility, noncompliance with SLA or Service Level Agreement, performance issues, and meeting deadlines etcetera.

It is important that you do your homework before starting the search for the right vendor. A proper Service Level Agreement will ensure that your goals are realized and there is transparency all along. Here are a few business engagement models from which you can choose from.


Fixed Cost model

This business engagement model suits the medium or large sized projects. You can escape the cost of hiring engineers, techies and other employees for a one time project. The scope, goals, outcomes, and requirements of such projects are decided beforehand, at the time of agreement conceptualization itself. The time deadline and the cost involved are also predetermined. All other features that are not the part of the initial agreement may require additional cost if the client asks to accommodate them later on.

Hourly business engagement

This engagement model is chosen for the small projects that often have short time span. According to the size of the project, the client may pay the vendor at the completion of certain milestones, or if the project is very small, at the conclusion of whole project itself. The vendor is paid in accordance with a predefined hourly rate. The net payment is decided on the basis of the number of hours the team spent on the project.

The retailer business engagement model

Well suited for the long-term projects, this business engagement model requires a long-term association between the client and the vendor. While the rates are pre-decided, the payment frequency may vary from a few weeks to a month. The vendor decides the retainer rate.


LN Webworks is a leading Digital Services and Outsourcing services provider that enjoys a good reputation in India and overseas. The company offers unique privileges to its clients including guaranteed and transparent Service Level Agreements, free trials for a range of services, complete compliance and use of white hat techniques, meeting of deadlines, and value creation at the lowest and most affordable cost.


Pankaj Kumar - Designing Lead

Pankaj sets the vision and strategy for LN webworks. With years of experience in design and development of web and mobile technologies, Pankaj brings his deep technical knowledge & creativity to deliver complex projects right as they’re required in the most innovative ways.