by: Sarah Joson
Friday, December 14, 2012 | Outsourcing News |
Businesses that outsource internal processes are often perceived as entities that are looking for budget solutions. Before, if a company wants to outsource a specific process, they acquire the services of a large multi-service outsourcing provider. Nowadays, it can be subcontracted to smaller, niche-driven service providers.
Niche outsourcing providers are focused on a specific service or segment of IT outsourcing and often times, they are smaller. It is said to be more efficient and effective and is a means to reduce excessive bureaucracy that is common in large providers. What makes niche providers attractive to clients is the fact that it is much easier to terminate a single contract than a bundled one, which is why they are believed to be more passionate with their work as the entire company’s reputation depends on their output. Moreover, a lost deal is detrimental to the success of a niche IT service provider, making each contract count.
Multi-sourcing companies execute several processes and are typically much larger in scale.They offer a complete package for businesses that are looking to outsource multiple processes. Most business owners think this route is easier as they would only need one contract instead of managing several service vendors. However, large outsourcing providers specialize in one or two segments and the rest are identified as "add-ons". This leads to inconsistency in the quality of their output and contract. Moreover, costs are harder to manage and track when dealing with a single provider that offers multiple services.
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