Governance-Based Model

This model is based on an optimal division of responsibilities and focuses on cost provisioning and labour delivery. An IT governance model allows the customer to maintain optimal alignment of strategic IT functions to meet their business needs and increase competitiveness. There are three types within this model.

Specialist at customer

In this model, consultants from the outsourcing vendor act as an extension of the customer’s project team and they will be supervised by a customer manager responsible for the delivery. This model is mostly applicable when certain skills are not available in-house. Another reason for its use is when additional headcount is needed.

Managed Services Model

Managed Services is widely acknowledged as the best model to adopt for technology outsourcing if you have a long-term outlook. Vendor will be responsible for selection of resources as well as take responsibility of managing stakeholder expectations.


Pricing-Based Model

As the name already indicates, this model is based on the price, where the defining guideline are the payments to vendors or the pricing of the work order. A sound knowledge of pricing models and the Pros and Cons can make your decision process easier. Every company can greatly benefit from outsourcing software development tasks to another team, ensuring project completion on time and within the budget. There are some basic models you can choose from: the time & material model and the outcome-based model.

Time & material based-model

The payments are based on work delivered in regular intervals. The customer has an important role in the software development process. Good cooperation between the team and the customer is crucial. It is the customer who carries risks related to the scope.

Outcome based collaboration

The customer and the developer team set KPIs before the beginning of the software development.
Payment is done after achieving the predefined KPIs only after the customer is justified with the milestone achieved.

News from ERNI

In our newsroom, you find all our articles, blogs and series entries in one place.

  • 27.09.2023.

    Unveiling the power of data: Part III – Navigating challenges and harnessing insights in data-driven projects

    Transforming an idea into a successful machine learning (ML)-based product involves navigating various challenges. In this final part of our series, we delve into two crucial aspects: ensuring 24/7 operation of the product and prioritising user experience (UX).

  • 13.09.2023.

    Exploring Language Models: An overview of LLMs and their practical implementation

    Generative AI models have recently amazed with unprecedented outputs, such as hyper-realistic images, diverse music, coherent texts, and synthetic videos, sparking excitement. Despite this progress, addressing ethical and societal concerns is crucial for responsible and beneficial utilization, guarding against issues like misinformation and manipulation in this AI-powered creative era.

  • 01.09.2023.

    Peter Zuber becomes the new Managing Director of ERNI Switzerland

    ERNI is setting an agenda for growth and innovation with the appointment of Peter Zuber as Managing Director of the Swiss business unit. With his previous experience and expertise, he will further expand the positioning of ERNI Switzerland, as a leading consulting firm for software development and digital innovation.

  • data230.08.2023.

    Unveiling the power of data: Part II – Navigating challenges and harnessing insights in data-driven projects

    The second article from the series on data-driven projects, explores common challenges that arise during their execution. To illustrate these concepts, we will focus on one of ERNI’s latest project called GeoML. This second article focuses on the second part of the GeoML project: Idea2Proof.

  • 16.08.2023.

    Unveiling the power of data: Part I – Navigating challenges and harnessing insights in data-driven projects

    In this series of articles (three in total), we look at data-driven projects and explore seven common challenges that arise during their execution. To illustrate these concepts, we will focus on one of ERNI’s latest project – GeoML, dealing with the development of a machine learning algorithm capable of assessing road accident risks more accurately than an individual relying solely on their years of personal experience as a road user, despite limited resources and data availability.


  • 09.08.2023.

    Collaborative robots revolutionising the future of work

    The future of work involves collaboration between robots and humans. After many years of integrating technology into work dynamics, the arrival of collaborative robots, or cobots, is a reality, boosting not only safety in the workplace but also productivity and efficiency in companies.

  • 19.07.2023.

    When the lid doesn’t fit the container: User Experience Design as risk minimisation

    Struggling with a difficult software application is like forcing a lid onto a poorly fitting container. This article explores the significance of user experience (UX) in software development. Discover how prioritising UX improves efficiency and customer satisfaction and reduces risks and costs. Join us as we uncover the key to successful software applications through user-centric design.

  • 21.06.2023.

    How does application security impact your business?

    With the rise of cyber threats and the growing dependence on technology, businesses must recognize the significance of application security as a fundamental pillar for protecting sensitive information and preserving operational resilience.