by: Sarah Joson
Thursday, November 28, 2013 |
Businesses are clearly adapting to the trends and changes in the market. They do this to retain the trust and interest of their customers and fuel innovation internally. It was also discovered that some of their outsourcing contracts are no longer as effective as before.
The most popular trend in the world of outsourcing today appears to be multisourcing. Instead of utilizing one non-specific outsourcing service provider, companies are beginning to realize the value of tapping best-of-breed providers and to integrate a multisourcing delivery model into their operations.
Large deals are now divided into smaller ones where risks can be easily mediated and the service of vendors is maximized.
InformationWeek.com sorts the outsourcing market into four different categories based on the gravity and urgency of the requirements of a business:
Performing processes internally
Insourcing is common for businesses that have outsourced in the past and are not quite satisfied with the results that they get. Some of these companies experienced a decline in the quality of their products, while some surprisingly ended up with a large bill caused by surcharges that were hard to match in the outsourcing contract’s fine print.
This type of setup is common for operations that need constant communication and interaction between the client and the provider. However, talent shortage is a common problem that poses a threat to business continuity and the company’s budget.
Businesses that plan to tap markets in nearby countries usually go for nearshore outsourcing. Through this type of outsourcing, businesses are able to customize offerings based on the country they want to serve. For instance, US companies outsource to Latin America to accommodate the growing market there.
This is the perfect delivery model for companies that want to reduce costs and are thinking of beefing up operations to accommodate growth. Countries such as the Philippines and India are great offshore outsourcing destinations where labor and operational costs are less expensive.
Before creating a multisourced outsourcing setup, business executives must get a clear perspective first on what the company’s urgent needs are. Does it involve mobility? technology? support? Through this, they can seek out the best providers in the field and create business hubs that will represent each outsourced business function.