Global delivery model: what GDM means and how it is staffed

How a global delivery model works

• Onshore: client-facing roles such as account leads, architects and product owners, close to the customer.
• Nearshore: teams in a nearby time zone, such as Mexico or Colombia for US clients, for daily collaboration.
• Offshore: larger build, test and support teams in countries such as India or the Philippines, often running a follow-the-sun handoff.

IT services firms often sell GDM as a package with a blended rate across locations. A company can also build its own, hiring individuals in each country, which is where employment costs and rules come in. Read about distributed workforces for the internal version.

What each location adds on top of salary

Each country page shows the detail: India, Philippines, Mexico and Colombia. The employer cost index ranks all of them.

Ways to staff a GDM

1. Buy it from a vendor. An IT services firm or BPO employs the offshore team and bills you a rate.
2. Hire through an EOR. You pick the people; the EOR employs them for $99 to $699 per employee a month in published fees (checked October 16 and 18, 2026).
3. Use contractors. Contractor platforms list $29 (Oyster, Remote) to $49 (Deel) per contractor a month, but you carry classification risk.
4. Open your own entity. No monthly EOR fee, but you take on setup, accounting and local filings; compare in EOR vs entity.

Labor rules travel with the location. India's Code on Wages requires a statutory bonus of 8.33% to 20% for covered employees, and the Philippines requires the 13th month, so a vendor's blended rate should already include them. Ask.

GDM vs offshoring, BPO and MSP

Offshoring just moves work abroad. A GDM keeps onshore and offshore roles together on one delivery team. A BPO takes over a whole process, and an MSP runs an ongoing function such as IT. Outside business, GDM also stands for gestational diabetes mellitus, a medical term, which is why searches for "GDM meaning" turn up both.