Exploring Operational Models Using Offshore Delivery Partners

The choices you make can have lasting consequences, especially when it comes to business choices.

Architectural and building engineering offshoring is a strategic business practice where Western firms entrust specific tasks or entire projects to external partners situated in different geographical regions, generally influenced by lower labour costs. These tasks encompass a gamut of architectural and building engineering activities, from precise 3D CAD design services, architectural drawing services, CAD modelling, architectural rendering, generative AI technology, 3D visualisation and comprehensive BIM services. By leveraging offshore expertise, firms can efficiently manage their workload, meet project deadlines and enhance overall operational efficiency by accessing a vast talent pool of skilled professionals proficient in the latest relevant architectural software.

When it comes to BIM and CAD drafting services for architecture and engineering, selecting the right operational model is crucial for aligning business goals with the level of control and involvement desired by your company. The options range from supplier relationships to more controlled entities, each offering distinct advantages.

Hands-Off Employer Model – Limited Control & Decision-making

In this approach, you engage with an offshore delivery partner who operates independently, handling tasks with minimal intervention from your side. This model is ideal when you want to focus on outcomes rather than managing day-to-day operations and concern yourself with infrastructure and training. It allows you to leverage external expertise while keeping your internal focus on core business functions. . This can typically be an hourly, project-based or retained resource arrangement.

Involved Employer Model – More Involvement & Decision-making

For businesses looking to exert more influence, this model offers a middle ground. You maintain a closer working relationship with the service provider, participating in decision-making and strategy. This will typically involve a retained offshore team or personnel that visits or works with your team at your location. This suits companies that want more say in how services are delivered without the complexities of direct ownership. It may also involve directing team members closely, recruitment and appraisals.

Build-Operate-Transfer (BOT) Model – More Command

The BOT model is a strategic choice for companies planning to eventually absorb the entity into their operations. Initially, the service provider sets up and manages the operation at an offshore location, with the intention of transferring ownership to your company after a specified period. This allows you to test the waters, establish processes and ensure alignment before fully committing.

Global Capability Center (GCC) – Complete Mastery

Opting for a fully owned GCC gives your company complete control over operations, from strategy to execution. Whether it’s your first-time setup or an evolution from a BOT model, owning a GCC allows you to establish a dedicated entity aligned with your corporate goals, complete with legal and corporate governance. This model is ideal for companies looking to build long-term capability and control in-house, ensuring that every aspect of the service aligns with your vision, brand and standards.

Each of these models offers unique benefits, and the choice depends on your company’s long-term strategy, desired level of control and readiness to manage the complexities involved. By selecting the right operational model, you can optimise your services for greater efficiency, scalability and alignment with your business objectives.

Making the Right Choice

So, which of the operational models would be your best fit—whether a hands-off supplier relationship or a fully owned GCC or something in between? Several critical factors come into play that can determine the success of your operations across borders.

Walking the Traditional to Hybrid Cultural Tightrope

For a company with a strong in-house culture, expanding operations internationally introduces the challenge of merging this with the local culture of the new location. Success hinges on creating a hybrid culture that honours both established practices and the host country’s cultural nuances. This balance is crucial, as it fosters collaboration, innovation and seamless integration. The GCC or BOT models can facilitate this cultural fusion, allowing for direct involvement in shaping the new environment to reflect the company’s values while respecting local traditions.

Qualms about Offshoring

Traditionally hesitant to offshore operations, several companies prefer to retain their core competencies in-house. For such entities, a gradual, stage-by-stage approach is essential. Initially, less critical tasks can be offshored, and once confidence is established, the move towards more core activities can begin. This strategy allows the company to mitigate risks, evaluate the offshore team’s capabilities and ensure that core business functions remain protected. As comfort and trust grow, the reliance on the offshore team can increase, potentially transitioning to a more involved employer model or even setting up a GCC to fully integrate these core activities.

Maintain Learning & Expertise In-house

For companies that prioritise retaining all learning and expertise within their organisation, the choice of operational model becomes more critical. Only the BOT and GCC models provide the structure needed to keep intellectual property, training and expertise firmly within the company. These models allow for direct control over knowledge transfer and skill development, ensuring that all insights gained through the operation remain an asset to the company. In contrast, models based on supplier relationships may require significant effort to extract and retain valuable knowledge, as these suppliers often operate independently, with their own processes and priorities.

The decision of how far to venture into each operational model should be informed by these factors. Whether you prioritise cultural integration, safeguarding core competencies or retaining expertise, understanding the implications of each model will guide you toward the best fit for your business objectives.