Outsourcing is one of the well-known approaches to do cost optimization with the business. Many organizations have location constraints, so they do it at their location, but some services have no restrictions; hence, those services are outsourced to low-cost locations like India, the Philippines, etc. It always has a risk; therefore, many organizations having a global presence go for captive units and do the same location outsourcing to reduce the risk.
One of the IT Consulting companies based out of the West Coast wanted to explore the outsourcing model but was refraining from doing it as they were unsure due to the non-availability of a trusted leader/ partner at that location.
The CONCAT team came on board and analyzed the business requirement and associated risks. They discussed with all business heads to understand their needs, did risk analysis, checked outsourced roles availability and local talent pool availability, etc. The CONCAT team proposed three approaches with a recommendation of the third model, i.e. first, outsourcing, the second one captive unit with outsourcing, and building office on the BOT model.
The client agreed to build an office at Pune with 75 resources to operate under the CONCAT team’s supervision/ leadership and transfer the same as a captive business unit after 24 months by mirroring company policies, culture, etc.