Benefits of Multi-tiered Sourcing Strategies

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One size doesn't fit all. Each company has a unique set of needs and corresponding sourcing requirements. Nearshore can function as your sole outsource solution or integrate into a larger 3-tiered sourcing strategy. Each tier has it's own set of benefits and when properly configured, can create a flexible, scalable and cost effective business solution.

Dynamic Resource Allocation (DRA)

Internal staff, contractors and management consultants are your tier-1 resources. Need to extend your capabilities without increasing staff or the cost of on-site consultants? The addition of a nearshore team within a few hours of your office can solve your problems. Need to extend further for special large scale projects or after hours support? Leverage the resource pools and time zone differences of an offshore provider.

5 Key Value Points

* Create outsource "grid" of vendors

* Reduce risk of single offshore site

* Leverage core value of each tier

* Scalable model for growth

* Create competitive environment

* Select best of breed solutions

Outsourcing Pyramid

Tier 1 - On-site

- Strategic Vision, Strategy, Management, SME, PM, Design

- Internal Staff, Contractors, Consultants

Tier 2 - Nearshore

- Tactical PM, Design, Development, Support

- Low cost + Specialized skills + Close proximity + Multi-lingual + Culturally aligned

Tier 3 - Offshore

- Operational Design, Development, Support

- Low cost + Specialized Skills + Large resource pool - Distance limits access - Language limitations - Cultural differences - Rising attrition rates - Rising cost of labor

Concentrate on developing customized sourcing strategy that will integrate into your existing business model to provide the flexibility and responsiveness needed to compete in todays rapidly changing environment.

This article is part of free Outsourced.SK's - Software Development weekly series on outsourcing.

Please feel free to forward this article to others who might be interested in learning more about the benefits of nearshore software outsourcing in Central Europe.

Other articles in this series can be viewed at Oursourced.SK article archive. Here you can also download free eBook "The Outsourcing Cookbook" published by Outsourced.SK.

Jozef Antony is director at Outsourced.SK.

Article Source: http://depositarticles.com/

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