Outsourcing has established itself as an independent service sector. The kind of impact it has left globally, the entire sector is given a new terminology by the millennials: Global Business Services. It has succeeded to carve its impression, and the gain in its popularity beat the drum of its success.
This new terminology is making a buzz all around and everyone today is familiar that it represents organizations offering outsourced services.
The two major stimulants that encourage Outsourcing are cutting costs and access to global talent.
This drive to continue with the reduced cost while maintaining quality has become a pivotal reason for Dedicated Team Model (DTM) to gain interest and become one of the most preferred models today.
DTM in Demand
The strategic partnership model has become the new wave among young managers. They are leveraging on a Dedicated Team Model which is more strategic and integrated. While the Project based model still needs to be forethought, it seems the Dedicated Team Model has become the clear preference for managers.
This article is solely dedicated to throw some light on the Dedicated Team Model that has grabbed the centre stage attention. You will know how to leverage DTM for business.
Top 10 Questions to Know the Dedicated Team Model (DTM) Inside Out
1. What Is The Dedicated Team Model?
The dedicated team model (DTM) is a model in which the company decides to engage a third party team service to perform their business activities. Although the team operates from some other location, it functions fully under the supervision of the company. It refers to an agreement between the company and GBS organization, where the latter engages professionals and other resources to the company on a long term basis.
2. Who Needs A Dedicated Team?
Sometimes companies face problems like, they do not have a required skill set or lack of capacity which restricts them to fulfill their business needs. That is when DTM plays a major role in accomplishing those complex needs. A readymade team of skilled talent is an efficient solution, that caters all the solutions and fills the gap.
3. Who Benefits From A Dedicated Team?
It has been seen that global outsourcing market have had two major players:
Business Process Outsourcing (BPO)
Information Technology Outsourcing (ITO)
The global outsourcing market is worth US$92.5 billion. In the current scenario BPO is declining while ITO is marking a steady growth. In 2019 with increased optimism, ITO generated a revenue of US$ 66.5 billion, whereas BPO ended up contributing US$26 billion to the GBS sector.
Any kind of business, irrespective of the size can take advantage of the services of a dedicated team. The truth is different sectors are counting on the benefits.
4. How Does The Dedicated Team Model Work?
At Palmspire, the dedicated team of professional developers compensate for the lack of necessary expertise. Our goal is to provide value added services to you. We understand the business goals and give attention to your project objectives. We assign a team of experts who are self driven to give a seamless experience to you and help you achieve the end goals of the project.
We have a dedicated projected manager who will be your point of contact for all your needs and would remain in constant touch to update you on the progress of the project. The whole team is skilled to achieve your business goals.
5. What are the benefits of working with a dedicated team?
Not only an in-house team is more costly than a dedicated team but also it cuts the need for administrative management overhead cost in the business. When you have an access to a dedicated team, you open the horizon to many things:
Access to Expertise
You do not have to worry about finding the right potential for your work and match the needs of your project. The hiring process which is often tedious and involves a lot of cost and consumes a lot of time. You save on all these aspects, as you get a ready made team.
In this fluctuating market you avoid spending on setting up an office and infrastructure and limit your financial exposure. The dedicated team does all that an in-house team does under your complete control.
You save mental overhead of maintaining administrative details, at the same time enjoy monitoring the team and their functioning remains fully transparent.
6. Why Is The Dedicated Team Model Better Than Project-Based Outsourcing?
If we compare dedicated team model model to project based model then it is more successful for the long term business needs. The dedicated team is more closely aligned to the goals and priorities of the business need.
Project based models are often considered for short term needs and you do not have control on the functioning.
When you draw a comparison, then project based models have certain loopholes that dedicated team models address.
Project based model:
- You do not have control on team composition.
- The proposed team may have cross-sectional skills and do not match what the project requires.
- No fixed team members.
- The agency may change the number of members to work on your project at their will.
In dedicated team model:
- You can have the team having required skill sets to meet your goals. You decide and approve the final team.
- The team’s functioning remains under your control.
- The team members can not shift team members around unlike project based models.
- As the team functioning is handled by you you can foresee the needs and avoid delay in work.
- A dedicated team is more dedicated and scalable
- Security is always a concern in project based models. But as a dedicated team is a long term strategic partnership it doesn't become a matter of concern as you are the driver of the team.
- Long term relationship holds more trust.
7. What Is The Difference Between In-House, Remote, And Dedicated Teams?
An In-house team operates physically from your office. They are the members of your company. The operation is carried on within a company. It is still the most sought after model across the globe.
A remote team is a team that operates from a different workplace other than your workplace. It can be an outsourced team or can be your permanent employees. They work for you without being physically located at the company's workplace.
A dedicated team is a team whose members are not your employees but an extended team to meet your business goals. It is engaged by a third party service provider, and involves a contract. This team is made by the GBS agency, to best suit business goals.
8. How To Manage Your Offshore Dedicated Team?
An offshore dedicated team can be managed successfully if you follow certain things.
A project management tool can help to keep everyone on the same page. Either your GBS agency may propose certain tools, or you can discuss and use existing tools easily available. An orientation training can help all the members of the team and help you in ensuring standardized project management.
It eases out the process of communication between all the channels involved in the project. The resources are fully used this way. It bridges many gaps that may often become a hindrance in the successful project.
Effective project management is important for a successful project. The project must be well conceived and well managed. It gives pace to the execution and helps you achieve the desired result.
9. How to deal with the time zone difference when hiring an offshore dedicated team?
When there is an offshore team working for you, you may often face the issue of time zone. If the difference of time is less then it can be easily managed by finding a common time to communicate or conduct meetings.
But if there is a bigger difference in the time zone dealing with it can be challenging. But you need to plan that kind of cooperation. The right process and technology can also help you to address this issue.So having a dedicated team on the other side of the world is absolutely fine with the processes becoming more mature and agile.
10. Why Hire Dedicated Offshore Teams from India?
India is an undisputed leader and destination when it comes to offshore outsourcing. The reasons are many, like availability of skilled labor, high talent, human resources, tax-friendly environment, etc.
Let's check the index score of India in Outsourcing. According to Statista report, India had the highest index score in 2019
Financial attractiveness – 2.82
People and skills – 2.23
Business environment – 1.14
Digital resonance – 0.87
Although Indonesia has an index score of 2.84 in financial attractiveness but it was far behind in other indications.In financial attractiveness, China scored 1.88.
According to an article published in 2017, the factors that made India as an outsourcing driver were:
India’s population has become a blessing in disguise. Every year, the country is consistently adding more skilled IT professionals. The human power in India is giving rise to this number steadily. In 2016 India’s IT sector was valued at US$129.5 billion. This number is bigger than the IT market in the whole of Europe.
The availability of good talent in the country has driven many Fortune 500 companies who are at the top of the list to set up their offices here and have easy access to the talented resources.
India is the second largest english speaking country in the world due to Indian education system that emphasises on english proficiency. Hence, the language has never been a barrier.
The government policy is very supportive and less stringent. That leaves quite an impact on the choice of outsourcing business.
India also has a geographical advantage. The natural time difference between the US and European countries gives an advantage of work time extension. This significantly improves efficiency.
India has become a hub of investment from foreign countries due to low financial investment. It has become an ideal offshore destination. All these factors encourage a greater degree of outsourcing in India as compared to other countries.