Co-sourcing, in very simple terms, can be defined as a partnership between an organisation and an external service provider where these two parties agree and work together to ensure that the specialized needs of the organisation are met.
Co-sourcing is a unique sourcing model
Although, co-sourcing may seem very similar to outsourcing and consulting at the first instance, it is actually a very different sourcing model. When you choose to outsource or hire a consultancy, you choose to relinquish control to a great extent; where as in co-sourcing, your staff continues to take active part in planning, development and management. Additionally, when it comes to deploying new systems in an organisation with limited number of employees, no other sourcing model is as facilitating as co-sourcing. In fact, many companies see co-sourcing as an arrangement to bring highly qualified experts from specialized fields onboard, without having to employ them on the Company’s payrolls.
Co-sourcing can help save costs while maintaining control
Today, many companies prefer co-sourcing over outsourcing as it helps cut costs as well as to maintain control. When an organization opts to co-source, the in-house staff retain responsibility of the overall project or operation, but depend on the third party for technical skills and personnel. Co-sourcing contrasts the outsourcing set up where the organisation loses day to day control over its functions to the vendor. Not only that, it also helps the organization obtain maximum value, especially as the organisation saves on long-term investment in staff. Unlike in the case of consulting companies that plan and implement projects independently, co-sourcing allows the organisation’s personnel a persistent role in the project.
Co-sourcing is more ethical than outsourcing as the internal staff is not replaced in the co-sourcing model and they continue to work in coalition with the service provider’s team.
How can co-sourcing help
Co-sourcing can help you decipher the myriad of technologies in this competitive and complex global marketplace. The whole arrangement can help you with well-designed and effective solutions for your organisation’s unique needs and environment. In some instances, the service provider is required to manage all other vendors; in such cases, the co-sourcing partner ensures that your company receives the best rates and highest level of services. Last but not the least; co-sourcing, by reducing the burden on your internal resources can help you focus on your core competencies.