Kissing the Frog: A Short Guide to Outsourcing Models

Kissing the frog in investment parlance translates to the kind of risk you are willing to take. If you are ready to outsource your Product development, read on to find out what model will work for you.

Captive Centers – Highest commitment and risk – higher rewards:

A beautiful princess sees a handsome frog at the bottom of a deep well. She thinks he will transform into a prince given a kiss. However, the unreasonable amphibian refuses to climb out of the well and sleep under her pillow. The princess is so swept away by his charms that she marries him, moves into his well and keeps house for him. Once the princess is in the well she has to cope with a completely different environment. It takes a long time and hard work and lots of kisses for her to make the relationship successful, but the princess sticks to it since she has already spent a lot of time and money and hates to give up. There are two different endings to this version of the story.

I )If the weather is fine and the frog humors her, she turns into a beautiful frog and they live together, forever after.

II) If the weather is nasty or the frog bad-tempered, the princess has a very rough time getting out. If she manages to get out, she will avoid further contact with slimy amphibians and pass on the word to her network of friends.

Standard Outsourcing – Lowest Commitment and risk – Relatively lower reward:

The princess can’t sleep at night and decides to take a walk. She thinks she’ll get a frog to sing to her or maybe just to talk. She goes down to the waters edge and finds the frogs in concerto. The pond is full and the frogs all seem alike in form and voice. The music is poor, the price is low and the princess has no choice. So she may talk, or they may sing, or they may walk together. But in this fairy story there’s no together, forever.

Let’s pause for a bit. Both the above stories are no good if you want a fairy tale ending to your outsourcing. So we present a unique model – Suyati’s Dedicated Global Team. By applying the same story, let’s see how this model works for you

Suyati’s Dedicated Global Team (DGT)

The princess wanders to the edge of a pond in search of a golden ball which she wants to create. This will earn her kingdom fame and glory. A genie appears. I’ll get your ball, the genie says. Forget about the frog – I have an entire team of talented and experienced assistants under my command. We’ll share the risk and you will get your ball and you will even get your Prince, if that is your wish. They sign a pact and the genie summons efficient and effective professionals who dive long and deep until the Princess is happy with the Prince they uncover and the golden ball they produce.

A Dedicated Global Team for a Self-Publishing Giant in the US

Now the Princess has 3 fairy tale endings she can go with – keep the genie to do the work and to supply her golden balls at appointed intervals (Joint Venture with Suyati), cross the genie’s palm with gold and take over the professional team (Suayti’s BOT) or simply take the Prince home, but leave the golden ball behind so it can be constantly polished and updated while she rules over the kingdom with the Prince by her side (DGT).

Who says there are no fairy tale endings in outsourcing! Which one would would you prefer?

Author : mkrishna Date : 27 Jul 2010