With the offshoring outsourcing industry’s continuous growth and its services covering a multitude of tasks, it is no surprise that a myriad of companies seeks to benefit from it. Obviously, low labor cost and time-saving are one of the main reasons why businesses opt to outsource some of their routine tasks rather than build an in-house team that will otherwise cost more.
According to *statistics
- It is estimated that 300.000 positions are outsourced every year.
- In 2018, the global market for outsourcing was worth $85.6 billion.
- Government and Defense sectors are the two biggest users of outsourcing in the Americas.
- 59% of businesses use outsourcing to reduce their expenses.
- 65% of businesses that outsource application hosting say they would increase their outsourcing efforts in the future.
- 78% of respondents in Deloitte’s survey say they feel positive about their outsourcing relationship with other companies.
With this data, one can presume that in the current flow of the economy all around the globe, outsourcing simply paves a way to thrive in the ever-demanding world of business. Whether you are a start-up company or a multinational one, offshoring outsourcing your other business functions guarantees to be cost-effective and you don’t have to worry about having to train your staff as most offshoring outsourcing companies employ skilled professionals that need almost little to no supervision. The question is, how will you know which type of outsourcing model do you need?
Here are some *offshoring outsourcing types to consider regarding your business need:
- Professional Outsourcing
- This is an outsourcing model wherein you hire professionals based on specialized tasks that you require. Examples of these are accounting/bookkeeping, insurance underwriting, legal and administrative jobs.
- IT Outsourcing
- This model takes on tasks regarding any IT services such as but not limited to: cloud computing, software development, and data security.
- Manufacturing Outsourcing
- This type of outsourcing is what you would do if you are a manufacturing company choosing to outsource manpower to countries that impose a lesser tax on manufacturing and the whole works.
- Project Outsourcing
- Project outsourcing is a flexible outsourcing model wherein you hire an offshoring outsourcing staff to take care of some of your business projects. This model can be on a short term basis or long-term based on the project you wish your offshore team to tackle.
These models only distinguish your main concern, on the other hand, you also need to determine what relationship with your outsourcing team you need.
*Here are some outsourcing offshoring relationships you can choose :
- Staff Augmentation Model
- Staff augmentation simply means hiring an outsourcing partner to collaborate with your in-house team as support. The control of the augmented staff still belongs to the client as the offshore team only function as additional skilled staff.
- Managed Team Model
- The managed team model is also known as the hybrid model. The responsibilities are split between the client and the outsourcing provider. This model lets you release some of the managerial control to your offshore provider. This is the most common model most companies choose. As it lets you focus more on your core functions while leaving other projects to your outsourcing partner.
- Project-Based Model
- The project-based model is the outsourcing solution you might consider when you want a skilled staff to handle your non-core projects that your in-house team is not familiar with. Usually, this is the model companies avail when they want to outsource their IT needs. The overall responsibility of project-based models is commonly left to the outsourcing partner.
Virtual Colony is an offshoring outsourcing company in the regional area of Bulacan that specializes in insurance and IT industries with expanding expertise in other fields as well such as bookkeeping, legal, licensing and other administrative jobs. Thus, the Colony offers 3 out of 4 outsourcing models while pursuing a managed team relationship with clients. We at Virtual Colony believe that the hybrid model brings out the best in the client-outsourcing partner relationship as it is founded in mutual trust, transparency, and clear communication. The hybrid relationship model is ideal in the sense that whatever your offshore outsourcing needs may be, it ensures that the project is well executed with minimum supervision from you. You are still in control of your operations while having the liberty to focus on your company’s core functions while your offshore staff takes care of your other projects.
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