Gradual Development of International Business in form of Outsourcing Business Models

Following the set pattern for doing business is theoffshore country.
professional approach, which is applied by theUsually, outsourcing company uses to select reputed
businessmen keeping number of things to achieveoffshore service provider from the decided country
maximum level of profit. There may be difference inafter considering all factors affecting the business,
the offshore outsourcing models according to size andunder this small & big projects come, which can
strategies of the company. In the modern times ofbe continued for a long time. Another type is also
business, maximum companies of various sizes,project basis but the scope of the work is fixed &
outsource their work to reduce the cost according todefined perfectly, small web development companies
their specific needs.& free lancers are hired from offshore country.
Deciding the suitable model before taking any decisionJoint venture model refers to establishment of
is critical because wrong model can cause futurebusiness relations between both companies
losses for the business instead of profit or lowering the(outsourcing firm and local firm) in order to take
cost to business. Taking decision of outsourcingadvantages of each other on certain conditions, aim of
involves various important factors such as selection ofthese kinds of ventures helps both countries to learn
suitable country, economic conditions plus government& gain from each other and ultimately
policies of the country, international business strategies,development of both sides. In the build operate transfer
suitable outsourcing strategy and reliable company. As(BOT) type outsourcing, there are two stages of the
outsourcing is continued by the developed nations forbusiness, in first stage business can be operated by
the last many years, so there are different models ofthe local company as similar conditions of joint
outsourcing can be seen, types of these models haveventures and in second condition local firm can own
been developed according to specific business needsthe business on certain conditions and can show the
of the different companies respectively. Commonlyownership according to contract.
there are few models , which are followed by theSimply, to understand the main basic models followed
outsourcers for extending their work to offshoreby both the parties such as outsourcer and offshore
companies (web development companies in case ofservice provider are Joint ventures, project basis
IT & software development) such as Outsourcing(commonly seen in web development and IT oriented
to services providing company, Joint venture (JV)work) and opening wholly owned subsidiaries in local
offshore outsource model, Build Operate Transfercountry, which turns later on to local ownership after
(BOT) offshore outsource model, opening subsidiary incertain period of time & conditions.