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The new outsourcing hybrid.

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The new outsourcing hybrid.

The hybrid captive model is great when are you looking for effective alternatives for global services delivery methods.

What do these two outsourcing buyers have in common:

  • Buyer A; opened an off-shore site 3 to 5 years ago, currently has around 250 seats and is growing. Managed to stabilize the business after a year, and after two manages to finally break even. But now he’s facing attrition and staff poaching problems.
  • Buyer B; provides excellent customer experience through multiple channels, most of which require a personal touch. Off-shoring is considered, but at the same time highly unlikely since management is afraid to give up control and visibility. Also the enterprise believes that potential outsourcing providers don’t have deep enough knowledge of the customer base.

The answer is simple, Hybrid Solution. It will solve their problems and enable exponential growth.

How does it work?

There are two most common methods:

  • The buyer embeds his own staff in the facilities of the provider
  • The provider sends his own staff to the buyers captive.

Basically, it boils down two embedding ones staff in others operation. The employees are still an integral part of their company, but become one joint task force, handling the whole process from start to finish.

What are the benefits?

The current method, off-shoring only pieces of a process, while leaving the critical elements at the home site, eliminates all the benefits when one team or company managers it – from end to end. Thus breaking the natural flow.

Also this approach doesn’t require as many resources wasted on possible escalations, or specialized staff checking on their counterparts on the offshore site.

If a company is struggling with with sustainability the hybrid approach will helps spread out the fixed costs. Co-location at the providers site eliminates start-up investment costs.

With proper implementation, the Hybrid Captive model can make the business financially positive from day one.

Let’s not forget about the training the join task-force will receive. Developing staff with deeper knowledge of the customer is what the provider and the buyer both want.

Hybrid captive approach is a win-win for every party involved, the future of outsourcing finally arrived.