This is the cheapest model that offers attractive prices but the lowest engagement of the offshore companies. In this tier, low-level coding solutions and software are delivered. In a low-level offshore development model, product management is handled by the customer firm, while the quality assurance and development of the project are done by the offshoring firm.

As the name suggests, in this offshore development model, the complete project is outsourced to the offshore team. It is the most expensive level but provides complete development of the project. The customer firm and the offshore team remain in contact to regularly discuss the progress and the changes needed if any.