- June 23, 2008
- Posted by: admin
- Categories: Agile Applications, Blog, Commercial Models for Agile Outsourcing, Enterprise Agility, Outsourcing & Agility, Outsourcing Advice
A key option to consider while making your outsourcing/offshoring decisions is that of ‘Captive Teams’. The middle-ground between the captive centers and a 3rd party outsourcing provider is to have captive teams (dedicated resources) contracted through an outsourcing provider.
Best of both the worlds!
This gets closest of getting the benefits of both the worlds. With a captive team and a reasonable contract duration, 1 year plus you can negotiate a good monthly rate per resource. This relieves you from worrying about the over-head costs and local administrative issues of the offshore provider… and at the same time have stronger control and flexibility in how you would like to use the resources on multiple projects.
Allows for Agile and Change-friendly Delivery Models
Further, it allows you to utilize the more dynamic delivery models such as Agile to smooth out the frictions which are caused due to change management during the delivery. Offshore outsource provider likes this model even at a lower cost per resource, as it provides them firmer cash-flow projections… which in turn keeps them motivated to provide more flexibility to the otusourcer.
Win-Win for Both!
Its almost always a win-win for the outsourcing provider and the customer… Ephlux has experienced working in almost all the 3 models (Fixed Price, Dedicated Resources, T&M)… and we’ve found this captive team model which we call ‘Power Team’ to be the best in terms of a good win-win balance between both the parties.