Outsourcing Models

Before you think of outsourcing your company’s business processes, it becomes vital to consider two important aspects. Why do you want to outsource and what should you outsource? This starting point can tremendously help you in getting the most out of your outsourcing arrangement and help improve the overall efficiency of your business workflows.

Let’s look at the different outsourcing models you can choose from.

 Insourcing

If you have a temporary business requirement, the insourcing model makes sense as it involves no significant investment. For instance, you are facing a shortage of labour for an urgent project, insourcing can be a viable option. The work involved is repetitive and process-oriented in nature and can be easily managed by insourcing labour. Think of it as a staffing solution where you retain the control of training, quality and productivity. Whereas your outsourcing partner is responsible for handling the business functions such as IT, inbound and outbound call centre, customer support services, and more.

 Outsourced Employee with Manager Support

Under this outsourcing model, apart from setting up an offshore division for the outsourcing partner, they also manage the training and productivity. This means they not only handle your business functions such as IT, HR, recruitment, accounting, etc. but they also train the staff for these functions. Thus, there is minimal supervision required under this model and you are a lot less involved in the daily work scenarios and requirements.

 Project-based Outsourcing

As the name suggests, project-based outsourcing allows you to use the resources of another company for a project you are working on. Instead of investing in building an in-house team, you can start working on the project without losing crucial time. You get access to external expertise and deep-seated knowledge of subject matter experts working with you on the project. Plus, it is easier to ramp up and down the resources on a need basis as your project progresses.

 Build Operate Transfer (BOT) Model Outsourcing

This model involves a contractual relationship between the outsourcing company and an organization. The service provider is responsible for setting up, running and then transferring a process delivery operation to the organisation. This model is an ideal option when you are expanding your business in a new territory and could use local expertise of the outsourcing company. They better understand the regulatory compliances, laws and legislations, and cultural difference of the land and can help you leverage these advantages to your benefit. Besides, when you establish a strong foothold in the area it becomes easier to scale your operations over a period.