In Today’s fast changing world, technology gets updated very quick, In order to keep up with new and ever-changing technique management has to spend on either recruiting new talent or upgrading existing one thru training OR hire third party.
Where as you can outsource work very quickly but there is almost no control. You can not implement your values in this model which is possible is captive model. But retaining such a talent offen proven unprofitable if workflow hits bottom.
Milestone has worked out a Mixed model to get benefits from customer’s own in-house work and traditional outsourcing model.
|Differentiator||Traditional Outsourcing Model||Traditional Captive Model||Milestone Extended Office Model|
|Infrastructure||Customer does not own facility||100% Customer owned facility||Customer does not own facility|
|Capital Investment||No initial investment||High investment, all insured by customer||Low capital investment, bigger flexibility throughout the process.||Risk level||Shared risks, outcomes under agreement||All risks are undertaken by customer||Shared risks||Implementation speed||Quick implementation 0 - 2 months||Long implementation 6 – 12 months||Quick implementation 1 - 3 months||Management Focus||Free up time and resources to focus on strategy and business issues||Economies of scale at low-cost location with full ownership and control||Economies of scale at low-cost location with no ownership and partial control||Leverage factor||Multi-user environment, best practice process model||Customer environment||Simulated customer environment||Flexibility||Flexible pricing models, ability to reduce/ increase operation size||Less flexibility||Quick adaption to changed business requirements||Cost management||Reduce cost||Control cost||Control cost||Control||Very little control||Total control||Total operational control but no financial control||Culture, Values, Strategy||Outsourced partner's||Same as the parent company||Same as the parent company||Self - sufficiency||Only operational unit||Only operational unit||Entire unit – Operations plus all support functions||IP and Data Security||Moderate||High||High|