16-01.

Offshoring as a service

Pattern description

Offshoring as a service (OaaS) is a business model in which the offshore office is not owned by the entity itself, instead it is outsourced to a vendor. The concept of offshoring is not new; however, in the past, some companies have tried to open their own offshore offices. The OaaS model leans towards utilizing a team or company which specializes in offshoring work and uses them on a contractual basis as a part of their own team.

Inventive problems

The company should be large and have a complex structure to perform a large number of diverse operations for the development, production, and delivery of a complex product to the customers.

The company should be small and have a simple structure in order to:

  • reduce the variety and complexity of the company activities;
  • focus on a small number of core operations;
  • have a small stuff;
  • minimize the cost of development, production, sale, and delivery of products to customers.