Key Differences

Traditional BPO:

• Involves outsourcing entire business functions to third-party providers, focusing on cost reduction and efficiency. The relationship tends to be more transactional with limited collaboration.

Augmented Offshore Model:

• Combines offshore resources with in-house teams, promoting collaboration and flexibility. This model allows businesses to scale resources as needed and leverage specialized skills without fully relinquishing control over processes

Reasons for preference 

1. Flexibility and Scalability

• Dynamic Needs: Augmented offshoring allows clients to quickly scale resources up or down based on project demands, providing more agility compared to the fixed nature of traditional BPO contracts.

2. Collaboration and Control

• Closer Integration: Clients often appreciate the collaborative nature of augmented offshoring, where in-house teams work alongside offshore teams. This can lead to better communication, faster problem-solving, and a greater sense of control over processes.

3. Access to Specialized Skills

• Enhanced Expertise: Augmented offshoring can provide access to specialized skills and knowledge that may not be readily available in-house, allowing businesses to innovate and improve service delivery.

4. Quality and Customization

• Tailored Solutions: Clients may find that augmented offshoring allows for more customization of services and processes, which can lead to higher quality outcomes that align closely with business goals.

5. Cost Considerations

• Balanced Approach: While traditional BPO is often chosen for cost savings, augmented offshoring can also be cost-effective, especially when considering the added value of enhanced collaboration and expertise.

6. Technology Integration

• Advanced Tools: The use of modern collaboration tools and technology in augmented offshoring can improve efficiency and effectiveness, appealing to clients looking to leverage digital transformation.

Industry Trends

Many industries are increasingly focusing on agility and adaptability in their operations. As a result, companies are exploring models that allow for more strategic partnerships rather than simply outsourcing functions.

Conclusion

While traditional BPO still has its place, especially for companies prioritizing cost reduction and efficiency, many clients are indeed preferring augmented offshoring for its flexibility, collaboration, and ability to drive innovation. Ultimately, the choice between the two models will depend on the specific strategic goals and operational needs of each client.