Though some companies started engineering outsourcing more than a decade ago, many companies took cautious steps to embark on this journey. Understandably they were fearful of handing over their core business processes into the hands of a third party. Top executives who wanted to leverage the benefits of outsourcing had to overcome multiple internal roadblocks.

More than anything else, the executives had to address the skepticism & reluctance of the core engineering teams within the organizations, on the fact that someone else from outside of their organization can add value to their business. Companies tried different outsourcing models and narrowed down on the models that delivered them the best results.

Depending, on their nature of business and business objectives, companies have tried out various outsourcing models like, Establishing their own captive center, Working with vendor partners, Entering into a joint venture with offshore companies, Build-operate-transfer (BOT) model, and a mix of two or more of these models.

Today, companies understand the real benefits of outsourcing; some of them through their own experience and some looking at their competitors who gained significant competitive advantage through offshoring. However it is still a million dollar question for many as to “What is the right outsourcing model for a company?”

This whitepaper takes a closer look at two of the popular offshoring models, captive center and vendor partner model, and highlights the advantages, disadvantages and challenges with these models of offshoring.