What is the difference strategic vs. tactical outsourcing?
The difference lies in the relationship that you create with your vendor. Clients choose to outsource as it benefits them in both ways – strategic and tactical conditions. As long as the client is aware of the advantages and disadvantages of the process, and well one particular subject than outsourcing can be very successful.
Tactical Software Outsourcing
In some situations, you may need help for few months or quarters. These types of situations include meeting deadline, limited availability of specific resources or to bring the project back on track. These are the tactical reasons to outsource; these are the opportunities considered good, to begin with, the long-term relationship called strategic relationship.
Strategic Software Outsourcing
In the Strategic Software Outsourcing pairing of the vendor and client is the most important aspect. How close are you with your vendor? Are you an important client for your vendor? Do you have access to the management team? A vendor for a $1000K per annum relationship is different than the $5M Per annum relationship with the vendor, they both may look similar.
Closeness with the client is another important factor. When things go wrong, you can meet the client/vendor face-to-face and bring things back on track. For that matter, local presence is another important factor. Also, if the vendor has their own facility in their nearby local areas or they have low-cost destinations like India, Philippines, Ukraine, it is an added advantage.
Lastly, demonstrated capability plays a vital role. Has the vendor successfully delivered to the companies like yours?