Managed delivery model is able to get an edge over other models of outsourcing.
In the Managed delivery model, the customers must be prepared to spend significant upfront cost. Because customers have to train the outsource vendor team in understanding the their business processes, management etc., Even though getting the ROI will be after a long time, customers prefer business delivery model because of certain benefits.
- Price negotiations for this model reduces their capital expenses and operating expenses. The offshore vendors are able to make good profit margins to achieve the SLA in the outsourcing contracts.
- Close communication
- In this model, strategic business solutions are offered. They work closely and more efficiently. So offshore vendors get repeated business from their customers.
- Minimum number of business goals enhance proper project governance .
- Transparency helps the offshore vendors to correct their mistakes. Customers are able to get quality services from their vendors.
Post recession constant pressure is compelling to lower the cost highly skilled onshore and offshore teams to provide higher value for their customers. Due to the competition from the out sourcing countries, the customers are able to drive benefits. Moreover the offshore vendors are also striving hard to develop and provide additional deliverables to their customers.