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There are several companies that are heading towards outsourcing. It is because either they lack resources or equipment or their employees aren’t trained enough to perform the job. Another reason for choosing to outsource could be the company doesn’t have enough time to deal with customer queries. In these cases, generally, companies acquire outsourcing companies that can handle their customer relationships, queries, various processes that need to be done on a given time. However, before choosing any outsourcing companies or the processes businesses need to consider the types of outsourcing models. Although there are two outsourcing models: Business Process Outsourcing and Out-Tasking used to train processes, services or technologies, they have been distinguished categories to differentiate each model. This post and we list four outsourcing models that are most-frequently adopted by the businesses out there. Let’s take a look. 

Business Process Outsourcing (BPO)

Business Process Outsourcing is a more strategic approach when it comes to sourcing your work because these companies utilize external supplier for the management of training processes. BPO is not only able to handle the complexities of managing multiple processes including contractual terms, higher risk but also provides the client the outstanding results within the defined time-limit. Generally, there are two types of BPO: Selective and Comprehensive. 

Selective BPO

Selective outsourcing is a BPO process in which a third party supplier is responsible for managing the certain set of training processes required for content or services. Selective BPO can be defined as:

1. Selective BPO is known as the second most complex type of outsourcing model used by most businesses to manage the higher risk involved during the supplies.  

2. Responsible for taking care of the integration processes of at least two functional areas that include Delivery, Content, Administration, and Technology. 

3. Selective BPO requires a Service Level Agreement, Master Service Agreement or Statement of Work before starting the process. 

4. It also requires the dedicated resources from the supplier’s and the buyer’s side in order to indulge them in the management of engagement. 

5. The financial size for the engagement of Selective BPO is less than the Comprehensive but larger than the Out-Tasking model. 

6. Considered as the fastest growing segment of the BPO outsourcing engagements. 

These are the characteristics of Selective BPO on the basis of which businesses choose the outsourcing model. Further, the Selective BPO has two forms: Selective Process Outsourcing in which the supplier is responsible for managing the set of processes across the different content areas of training programs. Selective Content Outsourcing, on the other hand, is a process in which again the supplier is responsible to manage the training processes of the selected group of content programs. 

Read Also: 5 Steps to Gain Success in Outsourcing

Comprehensive BPO

Comprehensive BPO is also known as Comprehensive outsourcing in which a third party supplier is responsible for managing the training activities and the processes required to train the organization. It can be defined as:

1. Comprehensive BPO is considered as the most strategic and complex type of outsourcing used by businesses to manage the risk involved with buyers and suppliers. 

2. Considered as the least used model of BPO outsourcing engagements due to its high financial sizes. 

3. Responsible for managing the process integration of all four functional areas including Delivery, Content, Administration, and Technology. 

4. It also requires the dedicated resources from the supplier’s and the buyer’s side in order to indulge them in the management of engagement. 

5. The financial size for the engagement of Comprehensive BPO is larger than any other Outsourcing model. 

6. Selective BPO requires a Service Level Agreement, Master Service Agreement or Statement of Work before starting the process.

Read Also: 7 Things You Need to Know Before Selecting a BPO Firm

Out-Tasking 

Out-tasking is an outsourcing model in which the company makes use of external supplier for various tasks such as managing the technologies or the products. However, these services can vary in number. Out-tasking involves lesser risk due to fewer processes and that’s the reason their processes are less complex and are assigned for a shorter period of time. Out-tasking engagements can be described as: 

Licensing

Licensing is an outsourcing approach in which the buyer obtains a permission to use or get a license of the right to use the intellectual property of another company. It can be defined as:

1. It is a transactional model in which the technology is based on the number of users or the transactions.

2. It defines the length of time for licensing, number of users, limited control of intellectual property, and so on. 

3. It is the most-common out-tasking model used for intellectual property or training technologies. 

Contracting

Contracting is an out-tasking approach in which the buyer signs a contract with the supplier to perform all the required set of processes. It can be defined as:

1. The most common form of outsourcing model with a lower level of risk. 

2. The model involves the contractual terms such as the use of labor on a weekly, hourly or annual basis. 

3. Contracting is an out-tasking model which makes use of skilled labor for various tasks.