Offshore Outsourcing
Offshore Outsourcing Business Models. Part II
One of the main points, while developing your offshoring strategy is to choose delivery model tailored to your type of business. In this article we will discuss models of outsourcing companies, their types and their benefits.
Dear Readers
We continue our series of articles on offshoring business models. This article is devoted to the second generation of business models abroad. For more information, if you Please, read the offshoring business models. Part I
The second generation of business models Offshore
The models of this generation tend to be more sophisticated and duration of several models of the first generation.
1. or blended delivery model of global outsourcing
In this model a company outsources at a service multinational that offers a mixture of room, offsite and offshore land resources. The global delivery model allows vendors to innovatively distribute and manage money in several regions of the world.
Advantages: Reduced risk-free rate, the market faster, saving a client invest in a big team of employees for projects multilocation. It is a choice preferred for large firms.
2. Hybrid Delivery Model
Outsourcing hybrid model also known as dual-shore model, combines offshore and onsite services and became the business model service providers medium headquartered abroad. The team on-site service provider does not collect all the requirements and development detailed specifications, handles customer facing components of the project. The foreign office is in charge of coding, testing and bug fixes.
Advantages: close working hour cycle-24; lower cost resources, this model allows the customer to interact directly with the provider service with the team on site and at the same time enjoy the benefits of offshoring.
3. Global Shared Services centers
Global Shared Service Centers (centers of captivity, off internalisation) are a combination of shared services onshore and offshore financial centers in captivity. The world center is managed as an independent company with its own budget and responsibility bottom line.
Advantages: global centers have guaranteed markets for their services, to alleviate some of the organizational problems such as control and policy that arise when companies outsource activities offshore back-office external providers.
4. Build-Operate-Transfer (BOT) model
BOTs tend to rely on first generation models ODC. He replied "Construct" and "exploit" parts of the model ODC and adds its own "transfer" part. That's how it works. It is generally built and managed in three phases.
1) Building. The foreign partner provides a complete solution for the construction of a center dedicated to an enterprise in a given country.
2) Run. The offshore partner provides a comprehensive service management operational.
3) Transfer Option. The customer has the option to buy the entire operation after a period.
Benefits: Customers are able to focus their management time on their heart of trade rather than operational issues. The execution risk is minimized, the money can be spent on core functions.
5. Offshore Multisourcing model
Multisourcing is the practice of using several models of offshore business and suppliers.
Advantages: This model allows greater flexibility, ideal for companies that take the approach of aversion risk of outsourcing. Companies that are new to outsourcing tend to source cross until they are at comfortable with the whole process.
Source for article: offshoring. Business models, return on investment and best practices by Marcia Robinson, Ravi Kalakota.
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