If your project is confidential and you require specialized skills to handle your project, then you need to consider the Onsite Outsourcing model. This would be the ideal model to follow, if you need constant support and if your project requirements are changeable.
If you are considering 24 hour support, low costs, and have definite requirements, then the offshore outsourcing model will be the best suited model for your organization. An offshore site can be located anywhere in the world. Today the most preferred place for offshore outsourcing is India. In this model, communication is carried out through the following; Phone, Email, Messengers and Video Conferences.
Apart from these two main models, there are some hybrid models, such as the offsite outsourcing model and the hybrid model of outsourcing.
If the duration of your project is short, requirements fixed and if your organization is small, without enough infrastructures to include more manpower, then you should be considering the offsite outsourcing model. One major advantage of this model is that you can frequently interact with your outsourcing partner.
The hybrid model of outsourcing would be apt for your organization, if you have an onsite office as well as an offshore development centre. Development, detailed design and testing are carried out offshore while the requirement analysis, high level design, acceptance testing and deployment are performed onsite.