The 5 Outsourcing Models Explained

Staying competitive in the business landscape requires being unquestionably decisive and strategic. In more ways than one, outsourcing equips your company better as you plan on shifting to a higher gear. But how do you know which outsourcing model best fits your needs? Read on to know more!

The 5 Outsourcing Models Explained

1. Comprehensive Outsourcing

In comprehensive outsourcing, an entire business process (or a set of business processes) is completely ‘outsourced’ or contracted to a service provider on an agreed-upon set of terms and conditions.

More specifically, the buyer selects a training supplier to manage all activities and processes in the project. This is advantageous in a way that there is less focus on the outsourced project and organizations can spend more time in other more important aspects of the business.

Companies choose comprehensive outsourcing to be able to fast-track the implementation of a particular business process. The most commonly outsource knowledge processes, and IT business process management services.

If, for example, a start-up means to tap into a software development agency to create a mobile app for their businesses, then comprehensive outsourcing is the way to go.

2. Staff Leasing

Staff leasing is where companies partner with a third party that will handle the administrative aspects of employment.

By staff leasing, costs on administrative services are minimized and organizations wouldn’t necessarily have to hire in-house staff for temporary projects or long-term projects.

This is perfect for seasonal projects and services that have an incomplete staff in the organization. Additional help in areas that may be lacking for companies may help the teams in providing better quality projects.

For example, companies may opt to provide direct staffing for IT services and customer support projects. This allows businesses to acquire already trained staff that are experts in their particular fields without the burden of training in-house staff.

3. Build-Operate-Transfer

The outsourcing partner takes care of everything, including setting up the facility, recruiting, training staff, and taking care of the operations. This is most frequently seen in government projects.

BOT contractors are special-purpose companies formed specifically for a given project. These are normally large-scale which includes the construction of highways, wastewater treatment facilities, power plants, and the like.

4. Offshoring

The process of relocating your office jobs to countries with lower labor costs but equal expertise, like the Philippines. This involves setting up a remote staff who will perform some of your job functions so you can focus on the core of your business.

Taking advantage of offshoring may be advantageous in some ways but organizations must also be cautious of the cons that they give. Language and cultural barriers are abundant in offshoring one’s services, so it’s important to look for staff who can work well in different work environments and cultures.

Many western countries offshore to India, which gives them many benefits other than lower costs. Apparently, time-zone advantages are also considered in keeping projects up and running for most of the time since India is located in South Asia.

5. Hybrid Captive

A model where one continues to perform core business processes for its parent company, where some or a significant portion of non-core work is outsourced.

In this model, the organizations and the clients each provide specific resources that they’re able to give. This depends on the project requirements needed to execute the desired processes.

Hybrid captives provide a different dynamic to the existing business process outsource (BPO) scenario. Without any doubt, it provides a leaner environment that allows organizations to scale. Above all, it makes clients flexible and agile.


The 5 outsourcing models each have their own pros and cons but it eventually all depends on the current situation of an organization, what their needs are, and how they mean to go about acquiring these services. These outsourcing models must be considered under certain circumstances and it is necessary that organizations know which outsourcing model is most compatible with their demands.


If you’re a business looking into outsourcing your needs, Mangtas provides clients and teams that are specific to your preferences in outsourcing.  Our outsourcing models include comprehensive outsourcing and staff leasing/direct staffing, among others.

With Mangtas, the future of outsourcing is here. Reach out to us here!