Thursday, April 3, 2014

SmartSourcing - The New Outsourcing Model

Information Technology continues to play a crucial role in business, compelling business leaders to consider developing their own in-house IT teams. They are increasingly looking for ways to maintain a team of their own IT professionals while reducing the in-house burden of supporting this talent. Reducing in-house support is often termed as “outsourcing”.  Over the time, outsourcing has changed and there have evolved many new models of outsourcing. SmartSourcing is one such form of outsourcing and is perhaps the best of all.

Why use this Business Model?

Finding and retaining IT workers has reached a crisis stage. Microsoft has already signalled their lack of suitable candidates for IT roles. IBM joined the queue and said they were experiencing “one of the largest skill gaps in history”. What’s the solution to this problem? The obvious answer is SmartSourcing. Companies can complete their IT projects in countries like India that has a high concentration of IT professionals. The term “outsourcing” can be scary for many businesses, but SmartSourcing is entirely different.

Anatomy of the New Business Model

In a typical outsourcing model, a business owner usually has no control over his outsourced project.  He cannot control the staff that works on his project, he cannot interact with them and in most cases, business owners do not even know the name, qualification and experience of the IT staff working on his project. It is likely that he will worry about the future of his project and will not be comfortable having unknown people working on his important project.

SmartSourcing is the Best Alternative. Here’s how it works: 

The primary difference between this process and outsourcing is that with Smart Sourcing business owners have total control over their project and their staff. Business owners can select and interview a candidate before hiring him to work on his project. He can have unrestricted and uninterrupted access to his staff and can manage all their assignments, projects, supervision and deadlines, though he does not need to bother about their payroll management and other HR tasks. A business owner pays a flat hourly rate that covers all the needs of his virtual staff including: IT infrastructure, hardware and software, in-house HR services, technical support and also a phone system with a US phone number.

SmartSourcing resources work as an extension of a business’s regular workforce
Business owners make the hiring and firing decisions
Business owners assign the work and their resources are dedicated to one particular project (or to the business owner)
Resources can work the same business hours as the business
Business owners assigns, reviews, and sets deadlines for all projects
The staff reports to the stakeholder – this may be the owner, manager, or even a SmartSourcing  project manager that acts as liaison between the local business and the remote staff in India
Owners can collaborate with their staff via phone, IM, email, Skype or video conference whenever needed

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