Do you have the right outsourcing model for your business?

Outsourcing models drive business growth, but which should you choose?

The ways that people do business have changed, thanks to the rise of outsourcing models that help companies increase their profitability. Gone are the days when everything is done in-house. With offshoring and outsourcing, you can achieve the flexibility you need to achieve a strong return on your investment.

As the business environment continues to rapidly change, no company wants to be left behind. This is why it’s necessary to seize opportunities and be adaptable. You need to be able to meet the growing demands of customers.

Traditionally, companies hired staff to work under the same roof and run each task in-house. In this model, there are large pools of workers with management directly watching over them. This, however, isn’t always the case today.

The global distribution of work has now become a standard practice for organizations to extend their services. It offers a huge advantage to companies as it provides them with high-quality workers at a more competitive rate.

Outsourcing, however, isn’t a one size fits all process. What really drives your success is having an outsourcing model that matches your business needs.

The different models of outsourcing

When choosing an outsourcing business model, it’s important to find one that’s appropriate for your business. Not all will complement the needs of every company that’s trying to outsource.

  • Freelancing

Freelancing is usually the cheapest outsourcing model available but also the riskiest. Through various websites, businesses can get in touch with home-based individuals who are offering their services for projects or ongoing roles. While there are some very good workers available at low costs, there are no background checks to ensure that the person has the appropriate qualifications and experience, and no safeguards to ensure your project will be completed on time or at all. It also makes it difficult to expand your operations and grow your team.

  • Project-based outsourcing

Project-based outsourcing is when you hire an outsourcing company where a project manager will be responsible for building a team and supervising your project until it is completed. This frees you up from doing a lot of work, but you need to clearly define or explain all your project requirements at the beginning. You don’t want your project getting delayed because of mistakes.

This model is good for those with small or short-term projects that need to be completed right away and with limited budget. You just need to lay down all of the requirements and you don’t need to keep track of the progress. The drawback is that you don’t have full control over your staff’s processes. If you’re working with a service provider, you can’t choose who will work on your project.

  • Fully Managed Services Outsourcing

In this model, an outsourcing company will handle absolutely everything for you. You tell them what you need done and provide KPIs, and they do the rest. All recruitment, and day-to-day management is done by the provider and they provide you with periodic reports.

It can be a good approach for those looking for a hands-off solution, however the downside is that the outsourcing provider will control your business processes which means that they can change the people who will complete your project. Because you have no control over the processes of your offshore team, it’s possible that the quality of work may suffer. There can also be a disconnection between cultures if your offshore team isn’t duly integrated into the business.

With this hands-off strategy, there is no need for you to know everything locally. You’re not stuck all day in recruiting or directing your staff. This approach can work for businesses that want to see results on a fixed schedule, but it’s also far more expensive than all other models as you’re paying for additional management and risks that the provider takes on.

  • Integration of company offshore

This model allows you to have control over all your business processes. You can set up a company division abroad, handle all areas of the business and manage daily productivity and quality. You basically run everything on your own. You do the hiring and setting up of your entire operations from start to end.

This often works for businesses that deeply understand the culture of the country where they will be offshoring their work and often requires top management to reside in that country. Make sure you’re set to operate offshore for a long term so you can regain your investment. Setting up this outsourcing model will take time as it’s a 100% hands-on strategy. You need to do it well to make it cost-effective, otherwise, it will cost you more if you end up shutting down your operation.

  • Business Process Outsourcing (BPO)/ Staff Leasing

Business Process Outsourcing or staff leasing is the most popular model for most SMEs and involves you setting up a part of your company in another country via an outsourcing partner. The provider will handle different areas of your business, such as recruitment, facilities, IT, HR and payroll, while you retain full control of the staff management and work quality. This works particularly well for businesses that want to have the agility and flexibility to scale up quickly and improve efficiency.

There are numerous benefits that this model can offer. It allows you to build your own full-time, dedicated remote team that you can integrate into your business. You also have complete control over your staff’s tasks, processes, and quality of service. Service providers with years of experience such as Cloudstaff can help you recruit and set up your team. They understand the laws and local culture so they can offer you continuous support.

Outsourcing with Cloudstaff

How much of your workday is consumed by tasks that someone else could do? If you think your time could be better spent on other things, then outsourcing is for you.

Cloudstaff is your trusted outsourcing partner. We believe that it’s necessary to have structured implementation frameworks. It’s important to be proactive, transparent and to take ownership.

The key is to map out your strategy for your business plan. Once we have a specific timeline and your business model worked out, it comes down to staffing. We have a professional in-house recruiting team to find high-level candidates and a commitment to helping you to smoothly transition your operations and lower your expenses.

Cloudstaff helps businesses diversify the services they offer. We provide professional staff who are highly skilled at doing time-consuming tasks. This allows you to focus on the things that are really important to your business.

Do you want to increase flexibility and add expertise and resources to your business? Email us today at to learn more about outsourcing.

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