Business Models for Offshore Outsourcing
 
 
Introduction
 
Various models for offshore outsourcing have appeared over the past few years as buyers and suppliers try to improve and streamline BPO operations and governance structures.  The choice of a single model or a hybrid model in a particular condition depends on a number of factors including the business objectives of the buyer organization, type of work being outsourced, duration of the initiatives, scope or volume of work, extent of operating control, and cost thoughts. 
 
 
 Some of the commonly employed models are:
 
1. Provider Direct
 
Here, the buyer organization out sources components or an entire business process directly to an offshore supplier.  Services are provided utilizing the staff and resources of the offshore hawker.  
 
 
2. Committed core
 
In this type of arrangement, the outsourcing service provider sets up an exclusive operation for the client allowing for tighter control over the work being performed.  And the task is done systematically. 
 
 
3. Intermediary see-through
 
Using this approach, a buyer deal with a domestic or onshore outsourcing service provider that then sets up or manages an offshore centers or contracts for offshore resources to gain cost or other competitive advantages.  
 
 
4. Confined Center
 
Here, the outsourcing group arrange its own center in an offshore location and manage it through its internal resources without actually contracting with an outsourcing dealer. 
 
 
Conclusion
 
While much has been presented in the media and press about technology and transaction-based outsourcing engagements such as IT and software development, call-center operations, back-office administration processes very little attention has been given to outsourcing of training related business processes.  Because of the complexity of many training operations, offshore outsourcing of these functions requires careful examination before deciding to employ one of the models that has been successfully applied to other business development. 
 
Training may touch a host of areas ranging from 'hard-skills' such as a technology, products, processes, etc. to 'soft-skills' such as sales, customer services, leadership, motivation, etc. Finally, technology infrastructure plays a growing role in delivering and managing training. Training processes significantly influence other organizational issues, communication, behavioral change, knowledge transfer, organizational culture, and interpersonal issues, much more than other business process such as IT tasks or HR processes.