Blended Outsourcing: Enhancing Business Efficiency and Innovation
Since the market changes fast and companies need to adapt to changes faster than ever before, there is a need for strategies to enhance efficiency, drive innovation, and maintain competitive edges. Outsourcing has been around for quite some time and is one strategy to get qualified staff at a lower cost. However, there are disadvantages such as reduced in-house knowledge, cultural challenges, communication problems, time differences, dependence on suppliers and reduced control. To resolve these challenges, one practical approach that has gained prominence is blended outsourcing. This model merges the strengths of internal and external teams, creating a synergistic partnership that can lead to remarkable business outcomes.
In Sweden we have a long term partnership with Epical Group, with whom we jointly offer blended outsourcing to clients in Sweden. In the UK we have a few partners we have worked together with on demand.
The Concept of Blended Outsourcing
Blended outsourcing is a strategic model that involves collaborating with an outsourcing partner while maintaining an active role for the in-house team. Unlike traditional outsourcing, where complete project responsibilities are handed off to an offshore party, blended outsourcing ensures that the team is made up with some local native people who work near the end-customer and collaborate with other team members located in the offshore outsourcing company. This collaboration allows for a more integrated approach, combining both groups’ unique strengths and insights.
Advantages of Blended Outsourcing
Enhanced Skill Access and Flexibility: Blended outsourcing allows companies to access a broader skill set without the long-term commitments associated with hiring full-time specialists. For instance, if a project requires niche skills or advanced technologies, these can be sourced from the outsourcing partner, filling gaps in the in-house team’s capabilities.
Cost Efficiency: By combining the efforts of internal and external teams, organisations can optimize costs. This is particularly significant in regions with high labour costs, as outsourcing certain operations to countries with lower operational costs can lead to substantial savings, while still maintaining high-quality outputs.
Risk Mitigation: Blended outsourcing distributes the risks associated with project development. With both internal and external teams sharing responsibilities, risks related to project complexities, technology updates, and compliance standards are better managed.
Scalability and Innovation: Outsourcing partners often bring new perspectives and innovative solutions to the table, driven by their experience across various industries. This can be invaluable for in-house teams looking to implement cutting-edge solutions or scale operations rapidly without compromising quality.
Implementing Blended Outsourcing
To effectively implement blended outsourcing, a structured approach is essential:
1. Strategic Planning: Define clear objectives and outcomes expected from the blended outsourcing arrangement. Understanding what each party brings to the table helps in aligning goals and setting realistic expectations.
2. Partner Selection: Choosing the right outsourcing partner is crucial. The partner should not only have the requisite expertise but also a robust understanding of the industry’s standards and challenges. For instance, at Gislen Software, our collaboration with Epical has been instrumental in blending expertise for enhanced project outcomes.
3. Integration and Workflow Design: Design workflows that integrate the processes of both teams seamlessly. This might involve using collaborative tools, regular meetings, and integrated project management systems.
4. Continuous Communication: Regular and open communication is vital to synchronise efforts and align strategies. Both teams should be encouraged to share insights, progress updates, and constructive feedback.
5. Performance Monitoring and Adaptation: Regularly monitor the performance of the outsourcing arrangement and be prepared to make adjustments as necessary. Performance metrics should be established from the outset to measure both efficiency and effectiveness.
Case Study: Successful Implementation
In the case of Gislen Software, our blended outsourcing model with Epical Group has demonstrated over more than 10 years how effective this approach can be. By leveraging Epical’s technological prowess and our in-depth understanding of local market dynamics, we have managed to enhance service delivery for several high-profile clients such as ABB, PostNord, Scandinavian Airlines, Swedish Match, and Volvo Car, optimising both costs and operational efficiency.
Conclusion
Blended outsourcing represents a strategic evolution in how companies can manage their resources in the digital age. By effectively combining the strengths of an in-house or local team with those of external experts, companies not only enhance their capabilities but also foster a culture of continuous improvement and innovation. As businesses continue to navigate complex markets and technological advancements, adopting a blended outsourcing model might just be the key to staying ahead in the competitive curve. Contact us to discuss how we can help you with strategic blended outsourcing!