What is the Difference between Tactical & Strategic outsourcing?

Today, many businesses consider outsourcing as a strategic step to gain an edge over competitors. Earlier, cost reduction was the prime reason behind it. But now entrepreneurs are choosing the road to outsource for maintaining the efficiency in their core business operations.

Rather than getting involved in the tiresome process of hiring new employees; entrepreneurs are outsourcing their development process. However, to make this strategy work in your favor, it’s important that you choose the best engagement model & right outsourcing strategy.

What is the Difference between Tactical & Strategic outsourcing?

Tactical Outsourcing:

This term refers to hiring a company or a small team to work on a specific development process. Tactical outsourcing works best for the task that requires you to meet short deadlines or to bring the project back on track.

To be specific, if you want to complete the project in a concise time span this outsourcing strategy is for you. It’s because hiring a local team of professionals on short notice and term will cost you way more than hiring a dedicated offshore team.

Moreover, this outsourcing strategy is valuable when you need an experienced developer in a particular technology for a short duration. Sometimes, it may also be difficult to find a professional with a specific skill set in the nearby location. So, it’s best to hire remote developers who can deliver quality results in less time & cost.

The best part is that all the planning process is done in synchronization with your remote development team. Therefore, you will be in the loop & would have control over the entire development process.

Strategic Outsourcing:

If you are planning to outsource a certain part of your business operations (eg; entire software development), this strategy is the best fit for your business. It’s because your outsourcing partner will be responsible for handling that specific process, which gives you the freedom to focus on your core business operations.

In short, this type of outsourcing strategy works best for long-term projects where goals and requirements are well-defined.

Words for the Wise:

Whether you choose tactical outsourcing or strategic outsourcing, it is important to address a few key points:

  • The first point is the documentation. Ensure that you have outlined your requirements carefully.
  • Get the background check of the company before hiring. Ask for the client reviews & portfolio to ensure that you will get the quality work consistently.
  • Last but not least, sign a contract that defines all the guidelines, terms and services to avoid any conflict later.

Strategic or Tactical outsourcing, Which One to Choose?

The answer depends on the project requirements. If you need dedicated offshore developers for short term project then you should choose tactical outsourcing. It will also give you control of the overall process.

On the other hand, for long term contracts where the project is evolving & requirements may change, strategic outsourcing is the right choice. It will free you from the extra burden to handle & let you focus on other important business functions.

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