Outsourcing Models

Besides the different classifications of outsourcing, there are also a lot of different ways that an outsourcing solution can be structured. In this section, we will look at a number of outsourcing models. There are basically four factors that determine an outsourcing model:

Project / Agreement Duration Are you planning to outsource a certain project with a limited project scope and duration or are you planning to outsource certain business processes for an indefinite time? Manpower Requirements How many people do you need? Do you need them to be available fulltime? What skills and experience do you need them to have? Responsibility Sharing How will the various management tasks be divided between you and your outsourcing provider? Who will handle HR, Technical Support, Operational Management, Quality Assurance, Production Planning, etc, etc.? Compensation Scheme How will your outsourcing provider be compensated for his services? Will you pay a fixed fee per fulltime employee (FTE) per month? Will you pay per day or per hour? Will you pay per deliverable? Will there be any performance bonuses in place?

These four factors are the building blocks that make up the final outsourcing model that will be applied between the client and the provider.

At MicroSourcing, we are very flexible and we can apply any type of outsourcing model as long as it makes business sense for both the client and ourselves. We do have a model that we strongly prefer which we call Offshore Staffing. A full description of this model and how it answers the questions in the four factors described above is given here. In the next section, we will have a look at outsourcing pricing