What is Hybrid Outsourcing & Why Should You Care?

I’m sure you’ve heard the adage that one of the keys to investing is diversification. Well, the same can be said for outsourcing. The three types of outsourcing – nearshore, offshore and onshore – all have specific benefits and each option is typically associated with expertise in certain skill sets based on the training available in that geography. A hybrid solution encompassing a variety of these outsourcing options can often provide you with the most optimal solution to align your company’s needs and goals with that of your outsourcing provider, while minimizing your cost outlay.

Valor views hybrid outsourcing as a best-sourcing model made up of the best combination of offshore, nearshore and onshore resources to best fit your specific needs and budget.

Advantages of a Hybrid Outsourcing Model

  • Low Cost – In addition to the traditional cost-saving benefits of outsourcing – such as eliminating costs of training, benefits and overhead – optimizing your mix of geographies and skill sets can help you improve operational efficiency and lower your costs.
  • Increased Effectiveness – Best sourcing matches cultural compatibility, skilled labor and cost requirements to align with your company’s specific goals and create the highest levels of productivity.
  • Scalability of On-Demand Labor – Utilizing a hybrid model provides maximum uptime and scalability – helping you extend your workday between multiple global locations. By eliminating capacity, location or time zone constraints, you are equipped with a virtual, on-demand labor force.
  • Single Source of Contact and Management – Having multiple, optimized outsourced locations doesn’t translate to more work and more management time on your behalf. Your outsourcing provider should provide a single source of contact to handle all the management, oversight and alignment between locations.
  • Standardized Processes – The cost of optimizing processes is greatly reduced since the hybrid model utilizes the same optimized and standardized processes throughout all locations.

Combining Offshore, Nearshore and Onshore for Optimal Results
Traditionally, outsourcing involved selecting the lowest cost location and many companies found themselves flying to many different locales to manage their portfolio of providers. The hybrid model gives you the same capabilities, optimized based on talent and cost, with just a single point of contact. An important consideration when looking for in a hybrid provider is that they employ a global methodology and framework for managing their clients, data, processes and employees. This provides consistency of experience throughout all locations and ensures the client will be able to easily scale and migrate resources to different locations as their needs change.

While traditional offshore locals will likely dominate IT services outsourcing due to their extensive labor pool, established infrastructure and cost structures, many nearshore outsourcing centers have developed a high level of proficiency in customer care, English language and robust IT infrastructure. These locals are closer to the U.S., so they also provide greater cultural alignment which can be an important factor when customer interaction is involved. Onshore resources provide a high level of talent and exact cultural alignment, but often come at a slightly higher cost. The key to the hybrid model is finding an outsourcing partner that is tightly aligned with your core values and goals, and will work to match those goals with the best combination of resources.

If you are interested in finding out more about Valor Global and our hybrid outsourcing programs, please contact me today and I’ll be happy to share our experience, standards and results with you.

Ian Bellais
Vice President Strategic Development
Valor Global


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