The Iterative and Incremental Model combines the strengths of both planning and adaptability. This model allows teams to develop software in chunks (increments) while refining it through cycles (iterations). It’s particularly valuable for outsourced projects, where clear milestones and continuous feedback are crucial.
In this article, we’ll explore how the model works, why it’s effective in remote or offshore setups, and how to implement it successfully in 2025.
New to SDLC? Start with our Complete Guide to the Software Development Life Cycle.
What Is the Iterative and Incremental Model?
The Iterative and Incremental Model is a hybrid SDLC approach that delivers a system in small parts (increments), which are refined and improved through multiple cycles (iterations).
Incremental = Build the product piece by piece
Iterative = Improve each piece continuously based on feedback
This means instead of delivering the full product at once, teams release functional slices of it, adding features and improving quality over time. It’s like building a car by first making a working skateboard, then a bicycle, then a motorcycle… until you reach the full vehicle.
How the Model Works in Practice
Here’s a typical cycle in the model:
- Define core requirements
- Plan the first increment
- Develop and deliver a working version
- Review feedback and iterate
- Add the next increment based on updated requirements
- Repeat until the final product is ready
Each cycle helps reduce risk and improve product quality gradually—perfect for outsourced teams working with evolving needs or MVPs.
Benefits for Outsourced Software Projects
Outsourcing adds layers of complexity: different time zones, cultural nuances, and potential communication gaps. The Iterative and Incremental Model helps offset these by:
- Early Deliverables: Clients get working software quickly, reducing time-to-market and enabling real-time feedback.
- Reduced Risk: Problems are identified early in the cycle, not at the end, like in Waterfall.
- Continuous Improvement: Each version builds on the last, based on actual usage and changing priorities.
- Flexibility Without Chaos: While Agile is highly flexible, this model offers a structured middle ground, especially when outsourcing partners prefer detailed planning.
Real-World Use Cases
The model is especially effective in:
- SaaS product development: Allows continuous feature releases
- Enterprise tools: Build core modules, then expand functionality
- Startup MVPs: Launch fast, test ideas, iterate based on real feedback
- Education & healthcare platforms: Deploy essential features first, refine later
Key Differences: Iterative vs. Agile vs. Waterfall
| Feature | Iterative & Incremental | Agile | Waterfall |
|---|---|---|---|
| Planning | Fixed core plan with updates | Highly adaptive | Fully defined upfront |
| Delivery | Partial versions at each stage | Working product every sprint | Single delivery at the end |
| Feedback | Built into cycles | Core to the model | Mostly post-testing |
| Best for | Projects needing both structure & flexibility | Rapid change, close collaboration | Stable scope, strict control |
Best Practices for Using the Model in Outsourcing
- Start with a Minimum Viable Product (MVP)
Define a minimal functional version to launch quickly and validate.
- Timebox Your Iterations
Each cycle (2–4 weeks) should include planning, building, reviewing, and updating.
- Document Learnings Between Iterations
Keep track of feedback, technical challenges, and user insights.
- Use the Right Tools
- Project Management: Jira, ClickUp
- Collaboration: Slack, Notion
- Version Control: GitHub, GitLab
- Testing: Selenium, Postman, Cypress
- Involve Stakeholders Continuously
Each increment should include client demos, reviews, and approvals to ensure alignment.
Learn how to keep your remote teams aligned in our Best Practices for Managing SDLC with Offshore Teams
Challenges and How to Overcome Them
| Challenge | Solution |
|---|---|
| Scope creep between iterations | Define success metrics and scope per cycle |
| Miscommunication with offshore teams | Use visual documentation + async updates |
| Dependency management | Plan increments modularly, with clear API or integration points |
Final Thoughts
The Iterative and Incremental Model offers a powerful way to manage outsourced software projects, giving you the structure of Waterfall with the adaptability of Agile.
By delivering software in stages and continuously refining it, you reduce risk, improve time-to-market, and stay aligned with your evolving goals. For many outsourcing businesses in 2025, this model hits the sweet spot between discipline and flexibility.
