Thursday, May 12, 2005

Dedicated-employee Outsourcing Model

The dedicated-employee model has been around for years, but most outsourcing buyers are well-accustomed to the unitize-based pricing. Both models have advantages and disadvantages, but I will be focusing on the dedicated-employee as I feel it is the more superior model.

"This model provides for the accumulation of knowledge and experience that is necessary to deliver high-quality end-results while successfully performing more sophisticated tasks," Outsourcing Solutions Inc's COO Jeff Hintze says. "We recruit, test, co-train, and manage these employees while constantly working with our clients to optimize the value of the relationship."

Because the employee is 100% dedicated to a specific task, he will ultimately be an expert in performing this task. Then his experience and expertise become part of the company's valuable assets.

Companies often go into outsourcing with the expectation of retaining control of how project processes are carried out, but not the facility and human resource management which are the responsibilities of the provider. With the dedicated-employee model, the client receives daily activity reports and has direct contact with the employees; this facilitates resolving potential issues with regard to the tasks assigned to each employee and thus increases productivity and limits turnaround time.

Wouldn't it be nice if you had personal relationships with your employees? I strongly believe that having good personal relationships with clients will affect the working relationship positively; the same could be said with the employees. Establishing a direct contact with them when addressing issues and being able to say "thank you" when they perform well are important factors in developing great motivation.

The dedicated-employee model, therefore, is much better at helping businesses become successful than other outsourcing models because it provides them with dedicated and hardworking employees that are specifically suited to their needs. Think of this model as having your own virtual offhore facility. You gain all the benefits of having an offshore office without the cost and headache of actually setting up a facility on your own.

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