All articlesIT Outsourcing

Three IT outsourcing models, compared honestly

Client payroll at client location, our payroll at client location, or development-as-a-service from our Hyderabad centre. What each model costs you in control, speed and management overhead.

2026-05-19 7 min readBy InfozIT Solutions

The models differ in who carries which risk

Every outsourcing arrangement allocates three things: day-to-day direction, employment risk and delivery risk. The three models we offer differ almost entirely in how those three are distributed, and that is the only lens worth using when choosing.

Model one: client payroll, client location

We source, screen and hand over candidates who join your payroll and work from your office. You own direction, employment and delivery entirely.

This suits organisations with an established engineering management layer that need hiring throughput rather than delivery capability. The value we add is speed and quality of sourcing, not management.

Model two: our payroll, client location

Engineers sit in your office and work to your priorities, while remaining on our payroll. You own direction and delivery; we carry employment, compliance, replacement and bench risk.

This is the most common choice for teams that need to flex capacity up and down without changing headcount plans, and for projects with a defined horizon.

  • Rapid ramp-up and ramp-down without hiring cycles
  • Replacement and continuity handled by us
  • Your processes, tools and standards apply
  • Suits fixed-horizon programmes and seasonal load

Model three: development-as-a-service at our location

A managed pod works from our Hyderabad centre against agreed outcomes. We own direction, employment and delivery; you own the roadmap and acceptance.

This gives the lowest management overhead on your side and the highest leverage on ours, because the pod shares our engineering practices, review standards, infrastructure and senior oversight. It is the right model when you need capability rather than capacity.

How to choose in one paragraph

If you have strong engineering management and need people, take model one. If you need capacity without headcount risk, take model two. If you need outcomes and want to spend your time on the roadmap instead of on delivery management, take model three.

OutsourcingStaff AugmentationManaged Delivery

Planning something similar for your organisation?

Talk to the InfozIT team about your CRM, HRMS, ERP, product or engineering requirement.

Continue reading

Let's build the platform your business actually needs

Tell us about your product, platform or hiring requirement — our team responds within one business day.

+91 92479 52695