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Partnership in outsourcing

August 7, 2009

Outsourcing is about partnership, about entrusting business process. This partnership should be flexible and adaptable – enabling your business to partner in ways that suit business environment. Some of the models currently incorporate much organization.

1. Build Operate Transfer:

“Build Operate Transfer” or “BOT” arrangements are being increasingly used in establishing offshore centers, particularly in India.

Through this model, the outsourcing provider helps the client set up the contact centre from start to finish. The association covers establishment of the operation, acquisition of facilities and staff and extends to actually running the centre for a defined period.

Once the center and services are well established, management and ownership is transferred to the customer. This proven service transfer platform is designed to ensure process integrity and minimize inherent migration risks.

2. Traditional outsourcing:

In the traditional outsourcing an entire business process is moved offshore in order to leverage the expertise and cost benefits offered by the outsourcing partner.

This model works well for routine, non-core business processes. The outsourcing company takes complete responsibility for carrying out the business process.

The company makes quality measurements on process outcomes, but does not directly manage the process.

3. Co-Managed Outsourcing:

Co-managed outsourcing follows the traditional outsourcing model; the only difference is that a manager from the customer organization is located at the offshore center.

This approach provides an added level of confidence because of the presence of an experienced company manager, while it takes full advantage of the offshore partner’s knowledge of local laws and culture.

4. Joint Venture:

In this model, the customer organization and offshore supplier set up a joint venture entity that will predominantly service the customer’s business. The offshore supplier brings the local expertise and service skills while the customer brings its knowledge of the existing business function while maintaining greater management control.

5. Assisted Build Out:

The Assisted Build Out model works well for organizations that require assistance with specific processes associated with captive operations.

Some of the processes include recruitment, training or quality initiatives. 24/7 Customer is currently providing recruitment and training for a world leader in data processing

6. Reserved Capacity:

The reserved capacity model, primarily meant for captive operations enables the purchase of enough outsourced capability, in terms of staff and infrastructure, to perform a certain amount of work.

This capacity is kept in place, regardless of the workload. When this option is employed, the captive center does not have to adjust staffing to meet workload demands – thus avoiding the expenses associated with constant staffing readjustments.

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