5 Outsourcing Models: What are They?

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5 Outsourcing Models: What are They?

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 “freedom [to a firm] from an internal source to an external source. Outsourcing can provide dramatic cost-savings... and leverage resources to sustain a competitive advantage.” 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
- build-operate-transfer (BOT)

...and deciding which of these suit your company's needs. Each one has its own merits but, suffice to say, can be summarized into the following aspects:

- Strategic priority: “How much process or strategies are you willing to control and augment in support of your business objectives?” and
- Risk tolerance: “What type of vendor-client relationship are you comfortable with?”
Answers to these questions put your organization a step closer to the right outsourcing setup.

Given the five outsourcing models, the advantage of picking one over the other is based upon the intrinsic quality of each model juxtaposed with the needs of your company. Ravi Nayar, Managing Director of UHY Advisors said that “It's not just a cost issue. It's also an efficiency, competency, and maturity of a process issue [when it comes to outsourcing]. A company [adopting] an outsourcing strategy should also consider that when they free up the operations, [they] now no longer have to perform the operations done by their business partner; it actually frees up a lot of resources within a company to start to do higher level tasks for a client or the customer.”

Author Resource:- The full article is available at:5 Outsourcing Models: What are They? . You can read more project management articles in ExecutiveBrief, online software project management resource.
	Submitted 2009-12-10 07:58:12 By: Executive Brief Article Read 227 Times Word Count: 390 Article From More Free Information Article Directory	Executive Brief's Author Feed http://www.morefreeinformation.com/author-rss-feed.php?rss=4726 Category Rss Feed http://www.morefreeinformation.com/rss.php?rss=29

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<!DOCTYPE HTML PUBLIC '-//W3C//DTD HTML 4.01 Transitional//EN' 'http://www.w3.org/TR/html4/loose.dtd'>; <html><head><title>More Free Information Article Directory | 5 Outsourcing Models: What are They?</title></head><body><h3>5 Outsourcing Models: What are They?</h3> By: Executive Brief 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 “freedom [to a firm] from an internal source to an external source. Outsourcing can provide dramatic cost-savings... and leverage resources to sustain a competitive advantage.” 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: <ul> <li>staff augmentation </li> <li>out-tasking </li> <li>project-based outsourcing </li> <li>managed services </li> <li>build-operate-transfer (BOT) </li> </ul> ...and deciding which of these suit your company's needs. Each one has its own merits but, suffice to say, can be summarized into the following aspects: <ul> <li>Strategic priority: “How much process or strategies are you willing to control and augment in support of your business objectives?” and </li> <li>Risk tolerance: “What type of vendor-client relationship are you comfortable with?” Answers to these questions put your organization a step closer to the right outsourcing setup.</li> </ul> Given the five outsourcing models, the advantage of picking one over the other is based upon the intrinsic quality of each model juxtaposed with the needs of your company. Ravi Nayar, Managing Director of UHY Advisors said that “It's not just a cost issue. It's also an efficiency, competency, and maturity of a process issue [when it comes to outsourcing]. A company [adopting] an outsourcing strategy should also consider that when they free up the operations, [they] now no longer have to perform the operations done by their business partner; it actually frees up a lot of resources within a company to start to do higher level tasks for a client or the customer.” Author Resource:-> The full article is available at:<a href="http://www.executivebrief.com/outsourcing/outsourcing-models/">5 Outsourcing Models: What are They? </a>. You can read more <a href="http://www.executivebrief.com/">project management articles</a> in ExecutiveBrief, online <a href="http://www.executivebrief.com/">software project management resource</a>. Article From <a href='http://www.morefreeinformation.com/'>More Free Information Article Directory</a> </body></html>

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