October 16, 2008, 5:56 AM — Knowing the five outsourcing models should equip you in deciding which one to adopt. Which one would benefit your organization more?
Do you want to cut operational costs but retain, if not increase, the integrity and efficiency of your company? Then, it would be worth your time to consider outsourcing by looking at these 5 industry models. With burgeoning vendors and outsourcing hosts halfway across the globe such as in India, Philippines and Eastern Europe, looking for a competent outsourcing partner can be very easy.
Anindya Bhattacharya, an outsourcing expert from The City University of New York (CUNY), said that outsourcing can give â€œfreedom [to a firm] from an internal source to an external source. Outsourcing can provide dramatic cost-savingsâ€¦ and leverage resources to sustain a competitive advantage.â€ The challenge is simply to ascertain which outsourcing setup is fit for your organization.
Now, this challenge can be simplified by carefully considering the five outsourcing models - staff augmentation, out-tasking, project-based outsourcing, managed services, and build-operate-transfer (BOT) - and deciding which of these suit your companyâ€™s needs. Each one has its own merits but, suffice to say, can be summarized into the following aspects: Strategic priority: â€œHow much process or strategies are you willing to control and augment in support of your business objectives?â€ and Risk tolerance: â€œWhat type of vendor-client relationship are you comfortable with?â€ Answers to these questions put your organization a step closer to the right outsourcing setup.
Read more about these 5 outsourcing models and how to choose the best one for your needs:
5 Outsourcing Models: What are They?