The Balanced Shore approachBy Mark Atterby Most leading BPO and outsourcing providers are offering clients flexible outsourcing location options. Datamark research highlights that these location options include at-home; on-site; off-site within the same city; off-site at a lower-cost-of-living city; nearshore; farshore; and blends of these arrangements[i]. It’s all about finding the right skills at the right price and how you manage and integrate them to deliver improved services based on economies of scope. Each scenario has its benefits and disadvantages. That’s why most providers, certainly the larger and more established providers try to use a blended approach.
Global Delivery Model – onshore, nearshore, farshoreA global delivery model allows a BPO provider to access the best talent at the best price in relation to the tasks and processes that need to be managed. The more complex activities that need greater involvement or collaboration with the client may need to be managed by operations situated locally to the client. Tasks that are fairly straight forward can be offshored or nearshored to a cheaper location. Nearshore options, though not as cheap as an offshore location, may still be cheaper than local operations where strong cultural alignment is necessary. Travel to a nearshore or regional location may also be easier.
By leveraging the right balance of locations, allows providers to build high quality, flexible and innovative solutions for their clients, yet keep costs down.