Team Design Plan: Analysis Framework
Purpose
This framework helps you decide where and how to build your digital delivery capacity. It compares three delivery models—Local, Nearshore, and Outsourced—using measurable inputs and consistent logic. Every recommendation is traceable, reproducible, and free from subjective bias.
What It Evaluates
The model assesses five dimensions:
- Strategic relevance – how central the work is to your business
- Technical complexity – architecture demands, integration density, tooling maturity
- Delivery speed – time to market and release cadence
- Talent and compliance – language requirements, data residency, regulatory constraints
Economics – total annual cost per FTE, including salary, overhead, and fixed costs
The Three Models
Local Delivery
Maximum control and proximity. Knowledge stays in-house. Best for regulated environments or customer-facing processes. Higher cost, limited scalability.
Nearshore Delivery
Strong balance between cost, control, and culture. Same time zone, similar legal framework. Suited for product development, modernization, and scaling efforts.
Outsourced Delivery
Lowest cost for defined, repeatable work. Effective for transactional or high-volume activities. Requires clear contracts, KPIs, and disciplined governance.
How the Model Works
Stage 1: Context Scoring
Your inputs (company phase, objectives, tech stack, duration, language, data constraints, architecture) map to five domains:
- K – Cost Sensitivity
- T – Technology Fit
- V – Velocity and Scale
- E – Efficiency and Output Consistency
- C – Communication and Control
Each delivery model has predefined weights calibrated from benchmark data. Local scores higher on Control. Nearshore scores higher on Velocity and Efficiency. This creates a requirements profile before cost enters the equation.
Stage 2: Cost Normalization
Total cost is calculated uniformly:
Total Cost = (Salary × (1 + Employer Cost)) + Fixed Cost + Travel + Recruitment
For outsourced work, this converts to an equivalent day rate model. Costs are normalized on a 0–100 scale relative to the minimum and maximum observed. This prevents high-value teams from appearing inefficient by default.
Stage 3: Weighting Application
The model combines context and cost through a variable weight controlled by a slider:
Combined Score = (Cost Weight × Cost Score) + ((1 − Cost Weight) × Requirements Score)
At 0%, the recommendation reflects pure operational fit. At 100%, it reflects pure cost efficiency. Most strategic analyses use 30–60%, balancing both views.
When the slider is at 0%, bias and contrast adjustments are disabled. Above 0%, small bias factors (Local 0.40, Nearshore 0.35, Outsourced 0.25) reflect realistic adoption patterns. All model percentages sum to 100%. Rounding differences are added to the highest score to preserve mathematical integrity.
Stage 4: Contrast Calibration
Without contrast adjustment, differences between models can be too subtle to interpret. The algorithm applies a mild exponential factor (1.25) to enhance visual clarity without changing the relative ranking.
Stage 5: Bias Safeguard
Bias coefficients are capped between 0.9 and 1.1 and recalculated dynamically based on:
- Seniority mix (more seniors reduce Outsourced weight)
- Project duration (short projects increase Outsourced relevance)
- Complexity level (high integration increases Local or Nearshore relevance)
These safeguards ensure mathematical consistency and prevent human interpretation from steering outcomes.
Cost and Control Tradeoffs
Nearshore typically delivers 25–35% structural cost reduction with similar or higher quality. It combines the communication proximity of local teams with the efficiency of optimized regions.
Implementation: First 90 Days
Weeks 1–2: Define goals, establish governance, configure tool environment
Weeks 3–4: Launch initial sprint, deliver measurable output
Weeks 5–8: Scale team, implement quality controls, align communication rhythm
Weeks 9–12: Evaluate KPIs, measure cost impact, formalize next-phase roadmap
Performance Indicators
Risk Management
Governance Structure
Product ownership remains with your organization. A tech lead ensures quality and consistent cadence. Weekly progress reviews and monthly steering sessions maintain alignment. Service levels are defined in measurable terms. Vendor scorecards provide transparency and accountability.
Team Composition
Teams are designed for balance and resilience:
Junior (0–2 years): execution and support tasks
Medior (2–5 years): delivery of defined features
Senior (5–8 years): design, quality, mentoring
Lead (8+ years): architecture and business alignment
Consistent tools, documentation standards, and rituals ensure uniform governance regardless of geography.
Compliance and Security
Data is not stored in the United States. Access follows least-privilege principles and multi-factor authentication. Encryption applies both in transit and at rest. Monitoring and incident management are continuous. Yearly audits verify compliance and security posture.
Vendor Selection Criteria (Outsourced)
- Proven delivery record and industry experience
- Certified GDPR and ISO 27001 compliance
- Transparent pricing with clear cost breakdown
- Transition plan covering knowledge and IP transfer
- Exit clause ensuring continuity and access retention
Quality and Continuous Improvement
Definition of Done includes documentation and measurable quality gates. Automated regression testing ensures consistency. Monthly KPI reviews feed an improvement backlog. Retrospectives and peer exchange support continuous learning.
Performance Cadence
Weekly: operational review and sprint check
Monthly: KPI and cost evaluation
Quarterly: strategic review on business outcomes
Performance is measured on delivery impact, not activity volume.
Pre-Launch Checklist
- Objectives and KPIs validated
- Team and access confirmed
- Data residency confirmed (EU only)
- Contract reviewed and signed
- 90-day plan approved by leadership
Summary
Local maximizes control and knowledge retention but carries higher cost. Nearshore delivers the most balanced outcome between cost, collaboration, and quality. Outsourced provides speed and flexibility for transactional or short-term scopes.
The Team Design Plan converts subjective opinion into quantified decision logic. By combining structured inputs, transparent weighting, and calibrated normalization, it produces reproducible, audit-ready results. Every recommendation is objective, data-based, and strategically defensible.
