Outsourcing strategies can be defined as the following:
Low-cost country. The outsourcing agency or company located in the country that offers lower labor and production costs. This strategy helps to cut the overall operating expenses.
Global sourcing reminds the low-cost country strategy. It is more focused on getting international market skills and resources. It is a way to refresh the in-house development with lower-cost production and new resources.
Prime or sub arrangements strategy works like this. You buy services from the outsource provider who can have contracts with other small businesses or freelance developers. All the contracts are dealt with under offshore laws.
Captive service operations are when you buy services from the company of your group of companies. That strategy covers the issues of confidentiality, security, and infringement rights. On the other hand, there is no option to get the advantage of the supplier’s expertise.
A conventional contract is a kind of simplified agreement. Each company expects the other side to insist on it because it is standard and customary under the circumstances. In this way, you can outsource a part of your operations.