The hybrid outsourcing model is also known as dual-shore since the latter integrates both onshore and off-shore services. Under this approach, both the outsourcing vendor and client have to complete the delegated tasks by working in tandem with each other.
For example, if 20% of the task is assigned to be completed onshore, then the rest 80% should be performed by the offshore team so that there comes leverage of cost arbitrage.
While companies have been leveraging a blend of captive offshore centers and outsourcing deals with offshore service providing companies to cater to their global business and IT process needs, over the years, a few mature outsourcing clients have begun to use the Hybrid models considering their benefits of both the worlds.
So, if you are looking for a cost-effective and non-hindering model to outsource your Dev team, then adopting the hybrid outsourcing model will be an ideal way to outsource your work because it combines both off-site with on-site operations.
6 benefits that you will get after outsourcing your Dev team via this model are:
- Reduce costs and improve your operational efficiency
Apart from the outdated cost-effective benefits of outsourcing – including lower costs of training, overhead and benefits – not only does this model optimize the mix of skill sets and geographies but also reduce costs and improve operational efficiency.
- Single Source of Contact and Management
Instead of multiple, optimized outsourced locations, it helps you with a single source of contact to handle all the management, oversight and alignment between locations.
- Scalability of on-demand labor
The hybrid outsourcing model provides you with maximum uptime and scalability by extending your workday between multiple global locations. By removing time zone, location or capacity restrictions, it equips you with a virtual, on-demand labor force.
- More flexible pricing points
It helps you with more flexibility when it comes to pricing negotiations. For example, it lets you adjust your budget simply by allocating more people for off-site work.
- Increased effectiveness
Based on your specific needs and to create the highest levels of productivity, it helps you with the best matches of cultural compatibility, skilled labor and cost requirements.
- Standardized processes
The hybrid outsourcing model greatly reduces the cost of processes optimization because it makes use of the same standardized and optimized processes across all locations.
How to set up hybrid outsourcing operations
If you want to set up a hybrid outsourcing model operation, you will have to hire good people.
By good people, I mean trustworthy resources as they will work beyond the walls of an in-house facility.
So, no matter how skillful, and proficient an employee is. If he/she is not at all trustworthy, hiring him/her is of no use as he/she can breach it anytime and for any reason.
Yes, you may have access to software or apps that can help you with a real-time view of your employees’ monitors and even send you screenshots of their PC every few minutes.
But with a trustworthy employee, you are sure to get quality work, based on your needs.
Best of all, you can also apply performance metrics that will help you in measuring technical, fundamental competencies and other work ethics. For example, you can set up a multiplier that will best represent and represent the value of the criteria to you such as:
- Work Ethics – 40%
- Accuracy – 35%
- Statistics – 25%
As companies are looking forward to adopting new ways to organize costs without affecting productivity, you can also get more businesses by embracing the hybrid outsourcing model.
Overall, the hybrid outsourcing model uses a combined team approach of both outsourced and on-site team members to maintain strong control and establish tight collaboration while accelerating team throughput and flexibility at a more affordable combined cost.
So, this model not only helps reduce costs but also nurture close relations and engender a true partnership. In brief, a few more key benefits of this model can be listed as:
- Local control and ownership coupled with lower offshore pricing
- Establish and fostering an “extended-team”
- Strong collaboration and communication
- Access to partner best practices
- Increased talent pool flexibility
- Post-deployment support
After reading the article about the Hybrid outsourcing model, we hope that you would like to know more about how you can outsource your development team and get it more benefited.
If you have any questions about the Hybrid model or need some experts’ advice to get your projects and ideas, we would be happy to answer them in the comment section below.
