What Are the Operational Outsourcing Models?
Outsourcing models define how and where services are delivered. Selection depends on objectives, regulatory requirements, and geographic preferences.
Offshoring
Delegating services to distant countries with lower labor costs (e.g., India, Philippines). Mostly Ideal for tech support, software development, and call centers.
Nearshoring
Outsourcing to neighboring countries for logistical, cultural, and time zone alignment. Popular in North America and Europe.
Onshoring or Domestic Outsourcing
Engaging vendors within the same country to meet compliance and proximity needs. Often used in regulated industries.
Hybrid
Combining multiple models to balance cost, control, and flexibility. Enables operations in local and offshore regions simultaneously.
Multisourcing
Using several vendors to reduce risk and enhance service quality across departments. Promotes competition and service resilience.
