What are Traditional Outsourcing Services?
In a Traditional Outsourcing model, the vendor performs a service for the end customer. Services range from call center support, transaction management, content moderation, bookkeeping, etc. This model is incredibly common with its fairly low effort. This model, however, has also created a lot of negativity because of its rigid nature. What makes this model challenging is the lack of control, visibility, and flexibility.
Traditional Outsourcing Services
- Payroll
- Tax
- Compliance
- Recruiting
- Management
- Facilities
- IT Support
- Recruiting
- Turnover Management
Strengths
- Access to global talent
- Compliance
- Low Effort
- Vendor Manages Turnover
- IT and Facilities Support
Weaknesses
- Requires Scale
- Traditional outsourcing relationships require companies to start at a certain scale for it to work. This can make it prohibitive for small to mid-sized businesses and startups.
- Long-Term Contracts
- Most traditional outsourcing contracts are 1-2 year commitments and are rigid in nature.
- Lack of Visibility, Control, And Flexibility
- There is no insight into who is performing the work and how it is being done. There is high-level account management, but it is difficult to get an insight of how efficient the service really is.
- Quality Control
- In this model, there is high level quality control, but for most clients the outcomes are less than ideal.
Read more on the different types of business process outsourcing in our previous article.
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