Independent Small Vendors (ISVs) should outsource instead of developing captive centers for development in different countries but how to deal with the issue of intellectual property rights is the main concern of this article.
The Hybrid model
The model merges the comfort level in a captive development center with benefits of getting the services of a third party vendor to fulfill the needs of the organization. For example if an ISV wants to set up a captive center to meet local requirements it should do so but employ third party resources to manage that center. By doing so the company will not loose the strategic control of the center and achieve the desired objective. Standard processes, staffing and the necessary competencies to run it can be outsourced to a particular agency and the functioning can be monitored at the center.
After the infrastructure had been developed by the ISV it takes over the core competencies of the business and the non-core operations are handed over to the third party. Non core activities could be different from company to company but every business has to employ proper management professionals for its different departments, thus this work could be outsourced to an agency and it will be accountable for it. The hybrid model offers lots of advantages to the company adopting it together with having control over the functions of the center.
Advantages of the Hybrid Model
Quick Start up Capability
The start up time of an offshore center is reduced considerably if the hybrid model is employed by the company. The offshore software vendor can help in developing the center
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