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Offshoring: It's not just about low costs

Leverage your global talent pool and bring the world to your doorstep. Let us tell you how.

Manish Kumar / December 06, 2021

When it comes to digitalization and automation skills, the world is a huge marketplace. But you can’t access it without leveraging a global talent pool. Should you be inflexible and skill-agnostic or collaborative and successful?

Uncertainty and disruption are now an integral part of every business environment. How do you continue being customer-centric, innovative, flexible, secure, cost-effective, and compliant while staying ahead-of-the-curve in such a dynamic scenario? How do you remain close to your customers and yet offer them the best services at the most competitive price? What mix of the above models will best suit your enterprise?

Welcome to a hybrid world – where no problem or solution is one-dimensional and architectural complexity is passé. As risks and profits become more closely aligned, business models need to be more resilient and future-proof. These models must be customized yet global and open to frequent changes that suit multiple situations while ensuring business continuity. It’s time to up your game and take your delivery models to the next level.

Making IT work for you

At Tietoevry, our focus is not on ‘what we can provide’. Instead, it’s about ‘what suits our customer best’. We help our customers identify cost-saving areas by simplifying and rationalizing their assets so that they can invest the savings in expanding growth and innovation. We also advise and guide our customers to capture the benefits of digitalization.

So, how can you achieve these almost contradictory objectives? We know that one size does not fit all. Therefore, we have defined and use a variety of delivery models. These models work individually and together based on the specific needs and objectives of our customers.

1. The “Nordic First” Model

In this approach, the majority of customer engagement happens in a local setting, in the local Nordic language and is supported by the efficiency of a global team.

In general, Nordic businesses spend 60-70 per cent of their annual IT budget on running application operations. However, just 30 to 40 per cent of them use it for new development that can support business growth and priorities.

Local presence and industry-focused expertise, zero-touch automation approach and global delivery excellence is key for Nordic businesses to achieve operational efficiency across ICT operations and business processes.

This approach is specifically suited to businesses designing a service experience for their end users who require a Nordic flavour to their solutions.

2. Networked Model

The networked model builds on the customer-fronting Nordic model and complements it by populating key roles with the best individuals, no matter where they are based. This also allows for multi-cultural and remote environments. The networked model accesses top talent across global locations and allows scalability – even with multiple vendors.

This model lets businesses optimise quality and costs alongside flexibility. It is best suited to enterprises that have experience working in multi-cultural environments and need top-notch skills across various implementation phases.

3. Industrialized Delivery Model

The Industrialized Delivery Model prioritizes the scalability of technical skills and the cost-competitiveness aspect of the delivery approach. In order to ensure a fluent flow of information, also customer-facing roles are very often covered from off-shore locations.

In certain areas, such as automation competence the best global technology expertise may reside in off-shore locations thus enabling enterprises to secure the benefits of both leading-edge technology and cost competitiveness. This model is best suited to projects where an off-shoring foundation has been already established, thereby giving the customer the combined benefits of low costs and ease of talent availability.

Striking the right balance

The pandemic has taught us that almost everything that can be done remotely will be done remotely. We have seen off-shore and near-shore teams manage high-level design and customer interactions exceptionally well.

In our experience, the ideal solution for Nordic customers involves having a networked model that accesses top talent across delivery centers supported by an industrialized model (based on off-shoring with automation baked in) to keep costs in check. This includes tying business solutions brainstormed by those who are very close to the business and customers with enhanced multisite orchestration capabilities to bring in scale.

We believe it is possible to get the best of both worlds.


Are you interested in knowing more? We are in a unique position to deliver the optimal mix of these different delivery models based on the needs of our customers. Contact our experts today to take the next step on your digital commerce journey.

Manish Kumar
Head of Business Development
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