3 Types of Outsourcing Models and How to Choose the Best One for Your Business Part 1

TeleworkPH
Published: February 1, 2021

For most business owners, outsourcing is a tried and tested service used to grow their business. Outsourcing can address a business need or improve a process to streamline operations. According to studies, at least 37% of small businesses outsource to strengthen their processes, while 24% of them outsource to increase business efficiency. As the demand for outsourcing grows, so do different kinds of outsourcing services. Some BPO companies offer task-based outsourcing, while some offer full-outsourcing implementation for turnkey solutions. Regardless of the outsourcing service you choose, let’s take a look at the different types of outsourcing models to help you decide what’s the best for your business.

teleworkph-3-Types-of-Outsourcing-Models-and-How-to-Choose-the-Best-One-for-Your-Business
teleworkph-3-Types-of-Outsourcing-Models-and-How-to-Choose-the-Best-One-for-Your-Business

Still can’t decide on an outsourcing model?

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and we’ll help you choose the right model for you.

Types of Outsourcing Models

1. Project-Based Outsourcing

Project-based outsourcing simply means farming out your projects to an outsourcing provider. This type of outsourcing model is time-bound as your outsourcing provider will only work on a given timeline. Your mutual contract or SLA (Service-Level Agreement) will end once the project is completed. A model like this is the ideal choice for when you need to handle multiple projects at a time. However, it’s still important to closely monitor the progress of your outsourced projects.  

When to choose:

A project-based model will work best if you have a startup company with limited resources and can only work on a project one at a time. Despite having limited resources, you’ll still be equipped with the latest tech through your outsourcing provider. This model is also applicable if you have a limited internal staff and they’re busy handling other projects. 

Check out this post for the next two types of outsourcing models.

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