5 Common Business Process Outsourcing Models and Their Differences

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For years, large firms that work for huge projects have used various business process outsourcing models. Learn which one fits your business needs as Outsource-Philippines describes each model.

Differentiating the Five Common Business Process Outsourcing Models

1. Global Outsourcing

5 Types of BPO Models - Global Outsourcing

Most large firms with a wide range of services use this outsourcing model often. Aside from projects and firms within the country, they work and connect with businesses worldwide to complete big projects. Here, clients outsource tasks to a number of specialized firms in various countries. This set-up helps both parties, moreover for those in underdeveloped countries. As a result, the project is worthwhile for the client while service firms will gain huge earnings in response.

2. Joint Venture Contract

5 Types of BPO Models - Joint Venture Contract

In this model, two businesses enter a joint agreement where they’ll share assets, profits, and even losses. Further, the terms and conditions often state that the client firm and the service provider will both share in the workforce, capital, and time until project completion.

Related Post: Outsourcing Companies: Your Ultimate Business Hack to Achieving Company Success

3. Project-Based Outsourcing

5 Types of BPO Models - Project-Based Outsourcing

As the name suggests, project-based outsourcing works well for companies with one-time or irregular projects. Most of these projects have low to medium complexity and well-defined requirements and deliverables. Firms outsource them, so they can go ahead with their regular operations and, likewise, hire a committed team to focus on the job.

Related Post: Philippines: On Becoming a Top Global Outsourcing Location

4. Staff Leasing

5 Types of BPO Models - Staff Leasing

Under this model, a firm outsources a few employees or a part of their time instead of a team or one company. Companies choose this one often when they need more skilled employees but not their full-time services. A few of them hire staff to offer other services they lack and/or if they have no means to form a new in-house team.

5. Offshoring

5 Types of BPO Models - Offshoring

In this model, a company, rather, branches off to many countries, wherein the parent firm directs the training of employees. Aside from sharing tasks within the branches, they outsource a handful of their tasks from other companies, too. This method allows them to leverage talents and cut operation costs while keeping control of their process and service delivery. In addition, this model lets the parent firm to get closer to clients and gain access to market opportunities where they outsource.

Each of these business process outsourcing models is efficient when used for the right needs. Then again, gauge first your operation’s status and chat with our experts to know what’s best for your business.


Sources: ovextech.com | bpoconnect.com.au | www.sourcefit.com
Image courtesy of Silatip at FreeDigitalPhotos.net

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