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      Model A

      This is perhaps the simplest outsourcing model, where a firm places its skilled people "on site" at the client's location. The people thus placed become a virtual part of the client's team. The model is also called staff augmentation. Most offshore outsourcing firms trace their history back to their software services model and continue to offer onsite project support along with some staff augmentation. This model of outsourcing is typically adopted by smaller firms that have a relationship with the client organization and the means to hire and staff people. 

      Model B

      A pure-offshore project involves instances where the scope is well defined and the work is discrete enough to be done remotely with little supervision. Examples of this model include work farmed out by smaller organizations and individuals to freelancers around the world using online tools provided by vendors like Guru and RentACoder. This model of offshoring is less prevalent and generally seen only in a small scale development of software component or modules. The model is also being adopted by innovative organizations looking to capitalize on foreign talent that isn't very mobile. An example is the drug-research consortium that runs innocentive.com. 

      Model C

      Organizations that have a well defined outsourcing program mitigate their risks of outsourcing by dividing the work into small, more manageable projects that they outsource to vendor organizations. Managers at client organizations who have well defined deliverables, programs or modules to be developed outsource them to vendors with whom they may have relationships. 

      Model D

      This is the classic offshoring propagated by most software service providers, where they take on the project, module or program from a client organization, deploy a small team onsite that works with the client managers and teams and coordinates work with the offshore team that does the bulk of the work. This is a more mature stage of the "offshoring individual projects" approach. 

      In this model, multiple projects, and programs at the client organizations are outsourced to a vendor, which also takes on the end-to-end program management and delivery on behalf of the client. For the outsourcing vendor organization, it's a step up the value chain; for the client organization, it's a value-added service since their employees don't have to manage the nitty-gritty of individual projects. Rather, the outsourcing organization's employees focus on managing the relationship and program and ensure that the vendor delivers as agreed.