Alternative approach to IT Outsourcing.

Alternative approach to  IT Outsourcing.
Posted : May 5th, 2021

When it comes to choosing the optimum offshore delivery model for your company, there is a lot to consider. Yet we find that most companies opt for the high-turnover, “black box” offshore model that has been proliferated by legacy outsourcing companies. This doesn’t have to be the case. It’s time to break out of the ‘black box’ and adopt a proven model of IT outsourcing that gives you all the strategic benefits of a Global In-House Center (GIC), without the risk or hassle of having to own the platform. We call this a Managed GIC or ‘Virtual Captive’ model. It is the opposite of a black-box model and has been used by many businesses to meet their long-term strategic objectives.

Let’s take a look at some of the distinct advantages a Virtual Captive model offers over a traditional IT outsourcing model. While cost is a great advantage, allow me to keep it for the last as I consider it as table-stakes.

Transparent pricing

The offshore center conventionally operates as an ‘opaque’ cost center. Whereas the Virtual Captive model is based on complete transparency over salary, operational expenses, and profit margins.

Total control over operations and outcomes

The Virtual Captive model is a collaborative model where the vendor acts as a proxy for the client, but the client gets to maintain full operational control. What this means is that client calls the shots in terms of deliverables, personnel decisions, and execution methodology.

Access to a high-skill talent pool

Legacy offshoring firms often struggle to provide experienced resources that have the skills to add long-term value. The Virtual Captive model solves this problem by taking a strategic approach to talent management and builds client teams of experienced resources instead of the typical fresh out of college graduates. Virtual Captives work as the client’s offshore arm that delivers superior outcomes.

Faster time to market

A Virtual Captive is quick to set-up and offers the flexibility to scale as per the businesses’ evolving needs. An experienced service provider typically brings along existing infrastructure and a facilities management team which makes it easier for the business to get started quickly without worrying about infrastructure, talent, or any other needs.

Now, the cost arbitrage or quick realization of ROI

In today’s bimodal IT environment, clients not only want more cost savings but are also looking to minimize their cost of entry. This is where the Virtual Captive model fits perfectly. It has a much lower cost of entry thanks to the already established infrastructure and facilities the service provider brings to the table. Plus, in the Virtual Captive model, the right team size and structure are designed to specifically meet the clients’ needs. This astute talent and budget management help create at least 30%+ cost savings as compared to a legacy offshoring setup.

At Systems Plus, we have been providing Virtual Captive solutions to our clients for more than a decade. Our Virtual Captive model takes out all the pain points of a legacy outsourcing model, making it the go-to outsourcing format for enterprises of any size and scale. With our Virtual Captive offering, it’s possible to break out of the ‘black box’ and reimagine the world of outsourcing with more cost savings, more control, more transparency, and access to quality talent!


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