What partnership structure should I use?

How do I choose a partnership structure?

There are many different ways to work with a BPO (Business Process Outsourcing), and your current product development can help identify the best way.
Read on to find some tips for making the best decision when looking to contract with a partner BPO.

At a high level there are two ways to setup the working relationship

Defined Project

With this structure you work with the BPO management team to define the deliverables and track the project against that specification.
At a regular delivery interval you take completed portions of the project, accept or request changes, and continue until the defined deliverables are all met.

This can still be a part of a larger Mutual Services Agreement, but each individual project is opened and closed based on completion of deliverables.

Consulting Hours

With this structure you work with the BPO management team to define the job requirements, the type of candidate needed, and the hours you'd expect in a 30 day period.
The BPO team would choose candidates within the company or hire additional resources to meet those requirements. A monthly plan is generated and the team works as an extension of your own. Deliverables are based on assigned tickets, and the work is prioritized based on changing company needs.

Benefits of Defined Projects

There are some clear benefits to this partnership structure, but also a few key detractors depending on your business needs.

Benefits

• Clarity of delivered work means that it is easy to see if the BPO has completed the expected work
• Planning of timelines and budget for completion means you know what you'll receive
• There is no need to worry about headcount, hours, or overtime. Only whether or not deliverables are arriving as expected and on time

Challenges

• Change orders are needed to make adjustments to the planned work
• Additional overhead and time required to properly define the project and the expected deliverables

Benefits of Consulting Hours

Consulting hours can be an excellent way to give your company the flexibility it needs in the early stages.

Benefits

• Flexibility of deliverables means that you can change the requirements and priority for the BPO team
• Consultants provided by the BPO can work more closely with your team and don't need as much project management oversight

Challenges

• Requires more direct involvement from the client team to communicate with the team and manage deliverables
• It's less clear what the team will complete at the end of a 30 day window

What do we recommend?

We believe in providing both partnership structures, because we know that what works best can vary widely based on where you are in your program.
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Ultimately earlier stage companies with less defined plans or product definitions can benefit from a Consulting Hours approach.
Later stage companies with smaller and better defined projects can best benefit from a Defined Projects approach.