successful outsourcing models

From humble beginning as a mere cost-cutting concept, offshore outsourcing has gradually moved ahead and established itself as a successful business model by rendering not only cost-effective but also sophisticated and highly efficient quality services. According to International Data Corporation (IDC), US-based companies will triple their offshore outsourcing spending from $5.5 billion in 2000 to more than $17.6 billion in 2005! The offshore outsourcing trend has crossed all the barriers of political turmoil, language and culture difference and has proved that no matter in which part of the world your service provider resides, what really matters is industry-standard, high-quality service together with decisive cost-advantage. But for quality and on-time delivery of offshore outsourcing services to a client, the offshore outsourcing service provider has been dependent on numerous delivery models that have evolved since the lastone-decade. A few of them are:

The distribution of activities across the various delivery models may vary from one project to another. This may be attributed to factors such as effort involved, level of interaction, cultural and time-zone differences. Some offshore outsourcing projects like migration and re-engineering can be executed totally on the offshore location, but others like enterprise application integration-related projects and demand almost a cent per cent execution on onsite location. This article will give an overview of the different kinds of offshore outsourcing delivery models followed by service providers the world over. It tries to give a general definition of the different offshore outsourcing models and has listed the benefits of each one of them while trying to portray a picture of actual distribution of activities at different locations.

The Offsite/Offshore outsourcing model provides exceptional value to clients. In this outsourcing model, the service provider will have its office close to the client's location and offshore outsourcing facilities at some other geographical region, which enables seamless transition and execution of projects without compromising quality and control for client management. The offsite outsourcing facility serves as a medium of communication between the client and the offshore outsourcing development team. Both the offsite and offshore outsourcing facility are well connected with highly secured network facilities for seamless communication with the respective client. This connectivity set up ensures failure-free, fast and secure access for the client to monitor the progress of development and support activity at both the offsite and offshore outsourcing locations.

This model also has an efficient backup facility for regular project backups and disaster recovery procedures. Generally, the distribution of work between the two outsourcing facilities is as follows:

For better comfort of the outsourcing client, to address risks, this of outsourcing model is adopted to adjust to fast delivery of client requirements. The outsourcing service provider ensures a well-planned mechanism under which the outsourcing project resources are distributed physically at multiple locations. This kind of outsourcing methodology ensures:

This outsourcing delivery model aims to productively spread out and manage engagements and resources across multiple global locations allowing the service provider to better respond to dynamic client requirements around the globe at unsurpassed levels of speed, quality and value.