Global companies are effectively using outsourcing as an important
strategy to cut costs, prioritize their business requirements and focus
more on their core competencies.
Outsourcing strategy has evolved from just being a cost saving exercise
into longer term vision to improve operational efficiency. Areas of
outsourcing ranges from accounting, software development, customer
support services & contact centers to various business processes
Strategic outsourcing helps companies to
- Be flexible to business changes
- Enter into new markets
- Convert fixed costs to reduced variable costs
- Out-smart their competitors
Your strategy can be based on three commonly used outsourcing models
- Managed services (Have exclusive teams with outsourcing partner)
- Build – Operate – Transfer (BOT)
- Pay as you go
When you need a close control over the outsourced activities.
This may involve close co-ordination between your office and offshore
centre. Your outsourcing partner should be capable of setting up
dedicated centre for you and manage it. This may also include deployment
of some resources onsite, so that the transition of work is smooth.
There will be designated persons for each role and a senior manager for
setting up the operations and to manage day to day operations.
Build – Operate – Transfer (BOT)
When you want a wholly owned subsidiary offshore center
This is a preferred method, if you want to establish your own center,
but want to see if it works well before taking the final decision. There
are outsourcing partners who are capable of setting up and operating
offshore centers on your behalf and handle you the responsibility fully
or partially after a certain length of time. (Typically 2-5 years).
Pay as you go
When you want to just use the cost effective offshore resources
Go for this method, when just you want the outsourcing projects to be
executed on time, possibly on a fixed price. There are outsourcing
providers with domain expertise and can quickly take on your projects.
This is especially suitable for time-bound projects like web designing,
one off software development projects.
Though all the three are different models of outsourcing, there is
always a chance for mixing and matching amongst these and sometimes,
In ITO Outsourcing we are capable of accommodating any of the models that you
choose to use. We will work with
you closely and help plan your outsourcing strategies right from the
beginning. We can share our experience and case studies of similarly
successful outsourcing engagements.
The outsourcing partnership must be mutually beneficial, risks
thoroughly analyzed and there must be a clear plan-B.