Multisourcing allows customers to diversify their software outsourcing and remove the geopolitical and managerial risks of having one offshore company in one country.
One size doesn't fit all. Each company has a unique set of needs and corresponding sourcing requirements. Nearshore can function as your sole software outsource solution or integrate into a larger 3-tiered sourcing strategy.
Each tier has it's own set of benefits and when properly configured, can create a flexible, scalable and cost-effective business solution.
Dynamic Resource Allocation (DRA)
Internal staff, contractors and management consultants are your tier 1 resources. Need to extend your capabilities without increasing staff or the cost of on-site consultants?
Adding a nearshore team within a few hours of your office can solve your problems.
Need to extend further for special large-scale projects or after hours support? Leverage the resource pools and time zone differences of an offshore provider.
5 Key Value Points
Outsourcing Pyramid
Tier 1 - On-site
- Strategic Vision, Strategy, Management, SME, PM, Design
- Internal Staff, Contractors, Consultants
Tier 2 - Nearshore
- Tactical PM, Design, Development, Support
- Low cost + Specialized skills + Close proximity + Multilingual + Culturally aligned
Tier 3 - Offshore
- Operational Design, Development, Support
- Low cost + Specialized Skills + Large resource pool - Distance limits access - Language limitations - Cultural differences - Rising attrition rates - Rising cost of labor
Concentrate on developing customized sourcing strategy that will integrate into your existing business model to provide the flexibility and responsiveness needed to compete in today's rapidly changing environment.
This article is part of free weekly series on software outsourcing at Outsourced.SK.
Feel free to forward this article to others who might be interested in learning more about the benefits of software outsourcing in Central Europe.
Other articles in this series can be viewed at Oursourced.SK's article archive. Here you can also download free Outsourcing Manual published by Outsourced.SK.
One size doesn't fit all. Each company has a unique set of needs and corresponding sourcing requirements. Nearshore can function as your sole software outsource solution or integrate into a larger 3-tiered sourcing strategy.
Each tier has it's own set of benefits and when properly configured, can create a flexible, scalable and cost-effective business solution.
Dynamic Resource Allocation (DRA)
Internal staff, contractors and management consultants are your tier 1 resources. Need to extend your capabilities without increasing staff or the cost of on-site consultants?
Adding a nearshore team within a few hours of your office can solve your problems.
Need to extend further for special large-scale projects or after hours support? Leverage the resource pools and time zone differences of an offshore provider.
5 Key Value Points
- Create outsource "grid" of vendors
- Reduce risk of single offshore site
- Leverage core value of each tier
- Scalable model for growth
- Create competitive environment
- Select best of breed solutions
Outsourcing Pyramid
Tier 1 - On-site
- Strategic Vision, Strategy, Management, SME, PM, Design
- Internal Staff, Contractors, Consultants
Tier 2 - Nearshore
- Tactical PM, Design, Development, Support
- Low cost + Specialized skills + Close proximity + Multilingual + Culturally aligned
Tier 3 - Offshore
- Operational Design, Development, Support
- Low cost + Specialized Skills + Large resource pool - Distance limits access - Language limitations - Cultural differences - Rising attrition rates - Rising cost of labor
Concentrate on developing customized sourcing strategy that will integrate into your existing business model to provide the flexibility and responsiveness needed to compete in today's rapidly changing environment.
This article is part of free weekly series on software outsourcing at Outsourced.SK.
Feel free to forward this article to others who might be interested in learning more about the benefits of software outsourcing in Central Europe.
Other articles in this series can be viewed at Oursourced.SK's article archive. Here you can also download free Outsourcing Manual published by Outsourced.SK.
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