Outsourcing Strategy
Global companies are effectively using outsourcing as an important strategy to cut costs, prioritise 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 centres to various business processes outsourcing.
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
Managed services
- 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 centres 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, uniquely different.
In Integra we are capable of accommodating any of the models that you choose to use. With our local presence in US and UK, 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 analysed and there must be a clear plan-B.
- "My work gets done overnight. When I come into office I like having my orders taken care of. Integra gives me competitive advantage"
- --Retailer, Iowa
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