To decide if offshoring is for you, you first need to understand exactly what the term ‘offshoring’ means. There are a few different types of offshoring, and they’re not all right for all businesses. They all have their own advantage and disadvantages.
3 Model of Outsourcing
It’s important to note that for your offshore team to work, you’ll need to put in the time and effort to train them up and get them across all of your systems and processes. What our offshore management team does is provide the back-end support to facilitate this. If you don’t invest in establishing, developing and maintaining your offshore team, then your offshore investments may not be as successful as they could be.
You can choose outsourcing models depending on you business and services. It is always a benefit to go for a long term agreement rather than a short one/Project based outsourcing. However we don’t say no to any work that you may offer.
Project Based Model
How it works: The client hires a team to implement the part of work that is already planned and defined. The project manager from our Vantage Management team carries full responsibility for the quality and performance of the project.
When to use: The project-based IT outsourcing model is suitable for not complicated projects that have predictable and well-studied functionality.
Advantage
- Clear Timeliness and the output
- Save time for your in-house team
- Get your project done quicker
- Fast hiring process
- No micromanagement
- Full responsibilities lies on our project manager
Disadvantages
- Less control over the project
- Lack of flexibility
- The result may be good however this sometimes doesn’t fulfill company’s need
Dedicated Team Model
How it works: The client hires a team that will create a project for them, and they will work only on that project. Unlike the project-based model, a dedicated team is more engaged in your project. In this model, an outsourced team becomes your technical and product advisor. So it can offer ideas and suggest alternative solutions.
When to use: Dedicated team, IT outsourcing model, suits best for early-stage startups that are expected to grow, complex long-term projects, which have the potential to expand, and projects with many vague requirements. If you want to validate your idea, find a product-market fit or build an MVP to test the market, the dedicated team is the way to go.
Advantage
- More control over the development process
- Working with professionals with greater expertise for your specific industries
- The final product definitely meets industry requirements and solves the problem
- More flexibility
- No micromanagement
- Extra time for your in-house team to work on the big picture
Disadvantage
- Long hiring process
- There might be a case where you’ll have more responsibility on the project
Out-staff Model (We prefer to work on the Model)
How it works: It’s a type of outsourcing in IT when you don’t need a full-fledged development team and hire separate specialists. Sometimes the project requires finding a couple of additional professionals, and you’re free to hire outstaff workers to cover that scope of work.
This model involves getting a partner in the offshore location to set up an overseas division of your company, and getting them to handle facilities, IT recruitment and HR, while you handle quality and productivity. This is the model we use, because we find it fits our clients’ needs – from quickly scaling up small businesses, to improving efficiency in larger enterprises.
The main benefits include:
- A full-time, dedicated team you can integrate into your business
- You select your staff from the candidates we present, so hiring is nearly the same as hiring local staff
- Full control over your team’s processes, tasks, KPIs and service quality
- Simple, transparent costs
- A specialist partner on the ground who understands the local culture and labor laws, and who has experience recruiting and setting up teams, and providing ongoing support
- Works well for virtually any role that can be performed with a computer program or over the phone
As far as the amount of work involved for you, our model sits in between the DIY model and the BPO model. You don’t have to do all the work on the ground to set up the team and your facilities, but you still have to be prepared to invest some time and energy into managing your team and their output.