Different offshore models offer great flexibility to the companies moving offshore, though each alternative should be thoroughly analyzed prior to making a decision to follow it. You can contact us to discuss which model is better in your case:
-
Offshore Staff Augmentation
In this model, client’s onshore team provides direct control of an offshore resource provided by vendor. This model implies tight communication between onshore and offshore teams.
-
Project Outsourcing
In this model, the client establishes a specific project to achieve a specific target, and prepares all necessary project-related materials. The client then engages an offshore vendor to deliver the particular project. This model is mostly suitable when the project is of middle to big size and the client does not have a constant need in offshore resource after the completion of a project.
-
Offshore Dedicated Center (ODC)
In the dedicated center, the vendor assigns fully dedicated resources to the client for an ongoing series of projects. In this model, the client is responsible for complete resource cost and will be responsible for downtime between projects. The benefits of this model is a less start up time for the client projects and zero team ramp costs, and better understanding of client requirements and needs by the project team. This model is suitable for the client when there is a long-term forecasted need for a specific series of related projects.
-
Functional Outsourcing
In this model, the vendor will outsource a complete function or application. Most functional outsourcing engagements heavily leverage a risk-reward model for the vendor, thus encouraging the vendor to innovate and perform at its best. Functional outsourcing allows getting the best possible value-add for clients.
-
Do It Yourself (DIY)
The client builds the offshore office by itself, including:
- finding a building,
- obtaining all local licenses and permits,
- hiring all employees and
- managing the daily activities of each employee once the team is assembled.
The model is proved to be one of the most expensive and least successful for onshore companies. We recommend that you better experienced vendor to build an offshore office for you (like in the next model).
-
Build-Operate-Transfer (BOT)
In the BOT model client engages a local offshore outsourcing vendor to entirely build an offshore office. Once the offshore team is up and successfully running, the customer will then buy out the offshore facility under pre-defined terms. In this model client does not have any risk associated with the process of moving offshore, and incurs lower costs through engagement of a specialized vendor
-
Mergers&Acquisitions (M&A)
In the M&A model onshore company acquires/merges with a mature offshore company and gets immediate and complete access to offshore facility of the vendor. The pros and cons of this model are almost the same as with M&A strategy in any other industry.
Belsoft-Borlas group offers its services in the Project Outsourcing model, ODC, Functional Outsourcing and Build-Operate-Transfer.