In today’s highly competitive business environment, businesses are taking several measures to reduce costs and improve efficiency. One such measure is outsourcing which is increasingly becoming quite popular. It involves allowing a third party to control your organisation’s function or process. These vendors specialise in these areas and, through their expertise, help your business improve its effectiveness.

Agile Managex Technologies is a leading managed IT services provider in Dubai, UAE. A managed services provider is a type of outsourcing model. In this article, we will explain managed services and other outsourcing models. The purpose is to help you understand different ways to outsource and decide which is the right fit for your organisational needs.

Outsourcing Models

1. Onshoring

It involves outsourcing your business function or process to a vendor within the same country as your business. This outsourcing model is preferable for those who wish to retain control over their vendor. With an onshore vendor, communication and coordination are not an issue. Both parties are from the same time zone and may even meet in person when the situation requires it.

2. Nearshore Onshoring

As the name suggests, it involves selecting a vendor from a nearby country. The primary reason for nearshore outsourcing is to reduce costs. The benefit of nearshoring is that the time zone and cultures are somewhat similar, making it easier to communicate and coordinate.

3. Offshore Outsourcing

If a business wishes to reduce costs significantly without concerns about communication or coordination, they opt for offshore outsourcing models. It involves selecting a country in a region with significantly lower labour costs. For instance, many European businesses outsource their IT functions to vendors in India and other Asian countries.

4. Hybrid Outsourcing

It involves selecting two or more outsourcing models. It allows a business to benefit from different models simultaneously. For instance, a business may opt for onshore outsourcing for critical functions. It may then opt for offshore outsourcing for support or less critical functions. It allows the business to improve its overall effectiveness and reduce costs.

Where Do Managed Services Fit in the Outsourcing Models?

Managed service providers (MSPs) like Agile Managex Technologies can fit any outsourcing model. When the company takes on projects from the Emirates, it is a part of the onshore outsourcing model. When the company works with European clients, it becomes an offshore outsourcing company.

An MSP mostly refers to an IT vendor who takes responsibility for an entire IT function or a part of it. For example, we offer IT services such as data centre support or IT staffing. All these services are available on two business models – remotely or on-site. Each has its pros and cons.

The key difference between managed services and traditional outsourcing is the vendor’s role. In managed services, the vendor plays a much more active role. They are involved in almost every area such as monitoring and support rather than just perform a specific task.

Conclusion

It concludes our post on outsourcing models. If you require any managed IT service remote or on-site, then Agile Managex Technologies is your go-to partner. With extensive local and overseas experience, we approach any challenge innovatively. We ensure your work meets your expectations and best industry practices. Contact us for further information.

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