How to Make Hybrid Outsourcing Strategies Work

In this article, Marc Tanowitz, principal, is quoted regarding the keys to yielding success with hybrid outsourcing strategies. Sample excerpts: “Because of the maturity of outsourcing, many companies find themselves employing hybrid sourcing strategies that encompass global in-house centers (GICs, once called captives) and third-party services…Marc Tanowitz, a principal at Pace Harmon, described the hybrid outsourcing model as ‘a new incarnation’ of the more traditional build-operate-transfer approach in which a buyer contracts with a provider to set up and run a delivery center with an agreement to transfer it back to the buyer at some point…’Hybrid outsourcing models can be tricky to manage because they are “relatively new and continuing to evolve,’ Tanowitz said. ‘Organizations are challenged by governance even with more traditional outsourcing relationships, and those challenges are compounded in a hybrid model,’ he said. ‘I haven’t seen a client yet without opportunities to improve their governance process.’”

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