| IT Outsourcing Models |
With the success of information technology outsourcing, managers are now getting into offshore outsourcing contracts without giving much consideration to the whole procedure. One size does not fit all and you need to view and study your unique requirements and your internal workforce before you choose to subcontract.
Then comes the decision to find a feasible outsourcing model. What do you fundamentally want? Do you need to enter into a prolonged relation with a service provider? Queries like these have to be addressed before you choose to try personnel outsourcing, function subcontracting, or project-based subcontracting. This article seeks to look at these three models of subcontracting.
First off, we will discuss personnel subcontracting. One of the main reasons to employ new workers is when you get additional work. You should increase your workforce strength but you also realize that the increase in workload may be temporary and not long term. Each permanent employee would also necessitate his own office equipments, so that entails more investment in fixed assets. And if the workload dilutes in future, it will be hard to layoff this additional staff.
Contract employees are normally too pricey to afford, particularly in these bad economic times. So the best alternative is to hire an offshore worker like a virtual assistant who will perform all kinds of administrative jobs. The aim here is to increase the workforce for handling extra work without employing internal employees.
Secondly, sometimes you get customers who demand a mixture of services and your current manpower might not have the needed skills to carry out all those demanded functions perfectly. This model of subcontracting works well if the task you are subcontracting doesn’t need bilateral work between several departments. For Instance, data entry jobs can be performed without much interdepartmental communication if you furnish all the information and a solid written description of the work required.
So it is fine to outsource this unique function to an offshore IT service provider. And this function-based outsourcing model also works well when you want to close an in-house division like a call centre and subcontract that entire function to reduce costs.
Finally, we have project-based subcontracting, where we outsource only specific IT jobs. Projects normally have pre-specified aims and end points, and the deliverables in projects can be fixed in detail. Project-based outsourcing is usually done for a short period of time and the deal ends with satisfactory completion of the project.
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