Outsourcing Business Models Types

Without any doubt outsourcing has been known have added value to various companies that have adopted it as a means of saving cost. But some of the things that need to be considered when thinking of outsourcing some business function can be grouped into models.

Some of the models to considered are:-

1.         Global delivery or Blended outsourcing Model: – This kind of model allows vendor or service provider to provide its outsourcing services globally; they can offer services onsite, offsite, onshore and offshore resources. The advantages of engaging a service provider in this model is that they have a lower rate and without any risk, fast service delivery and they have very large team that can save a potential client from investing in a large teams of service providers. This is preferred choice for large companies.

2.         Hybrid delivery model: – This can also be said to be a dual core model, because they function by combining offshore and onshore services together. This can be said to be a business model for average size service providers, but the controls comes from the offshore, while the onsite teams does the major jobs required of the teams and the offshore takes care of the project supervisions and other complicated jobs that cannot easily be handled onsite.

The benefits to clients is that, it is possible to received round the clock services delivery without interruption, they also operates at a lower cost and they have a very fast communication system that allows the clients to communicate with service provider directly, thereby giving the clients to enjoy the benefits of onshore and offshore outsourcing.

3.         Global Shared services centres: – this is model that combines onshore shared services and offshore captive centres. The global centre can be run separately with its own budget and responsibilities. The advantage in this model to a client is that, the global centres have a guaranteed market for any service they offer while freeing the organisation from political controls.

5.         Build – operate – transfer Model :- It works I three phases, the offshore part will be in charge of setting up complete solution for a client to take off this is build phase of the project, while the second phase normally called the operate phase is that the offshore partners will provides a set of employee to be managing the business to maturity, while the operate phase of the model is when the service provider decided to hand over the entire operations to the client after a fixed period of time.

The advantages in this kind of model is that the clients are able to focus on the major core business rather than operational issues, and the risk on the project execution phase is virtually none and money can be saved on other important functions.

6.         Offshore multi – sourcing model: – This is the practice of using a lot of outsourcing firms and suppliers. The advantage in this model is that it is more flexible and it is good for companies that are new to outsourcing.