What are the different outsourcing strategies?
Nov 25 - 2 min read
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- Blended Outsourcing Model or Global Delivery: This kind of model enables the service provider to
provide its outsourcing services globally. This is the preferred choice for MNCs. - Hybrid Delivery Model: This can be said to be a dual-core model because the model functions by merging offshore and onshore services together.
- Global Shared Services Center: This is a model that merges offshore captive centers and onshore shared services. The global center can be run independently with its own responsibilities and budget.
- Offshore Multi-Sourcing Model: This is the approach of using several outsourcing firms and service providers. The utility of this model is that it is more flexible and provides a resolution for business continuity plans.
- Classic Outsourcing: The conventional structure of traditional outsourcing consists of an agreement for the service provider to provide services (based on the agreed scope and an agreed level of services) in return for an acceptable pricing structure.
- Joint Venture (between organization customer and service provider)
- Group Captive (among multiple organization customers for their own captive)
- Licensing: In some cases, the organization’s customer wants to set up a new service architecture, service delivery center, or infrastructure. It might enlist the assistance of a service provider in the design of the operations, acquire the required equipment and technology, and hire, recruit, and train the personnel for the new service delivery center. Strategic sourcing can be accomplished through a licensing model. The organization’s customer may own a membership list, a trademark, or other intellectual property that can be commercialized for profit.