Co-sourcing versus Outsourcing

Co-sourcing

CO-sourcing versus Outsourcing

Co-sourcing is a relatively new model in the industry  compare to classic outsourcing

It offers to clients a full control over the staff (dedicated team), with complete salary costs transparency, a mix of in-house and outsourced team working together with full support services from the vendor size,
This model is the one we propose for the offshore development center (ODC) service here the differences :

Models >>CO-SOURCINGOUTSOURCING
SynthesisClient & vendor are PARTNERS
They share responsibilities & control
VENDOR have full responsabilities
CLIENT don’t have any control
Staff selectionVendor preselects the staff
Client chooses which one to Hire
Client doesn’t choose their staff
Staff is selected by the vendor
Salaries policyClient controls the salaries policy (transparent)Vendor controls the salaries policy (non transparent)
team’s activityClient controls his team’s activitiesVendor control team’s activities of client
performance outputClient manages performance outputVendor manages performance output.
Vendor provides assets & Technology systemVendor provides : Operations management, QA,
Vendor provides support management.(sourcing,hiring,HR,hosting,supervision)Vendor provides Technology system, Shared support services
COST- 30 % to 40 % compare to Outsourcing+ 30 to 40 % compare to Co-sourcing
BEST WHENLong term needShort term need
Size3 to 50 staffAny team size
Type of processSpecific business processStandard business process
Internal knowledgeStrong knowledge of the process to outsourceWeak internal knowledge of the process to outsource
ControlWant full control on the staff (salaries, benefits etc)No need of control on the staff & operations
Managementwant full support services & supervision (want to focus only on operations)Want to focus on deliveries
ManagementHave in house onshore project/operations managersNon projects & operations management capability
ProceduresHave implement strong procedures to followno procedures all is outsourced
Team connectivityNeed strong interconnectivity between onshore & nearshore teamsNo need strong interconnectivity
Want a quick set up, don’t have time
Looking for a non investment process
Looking for best cost saving & fixed costs

If you like this post on Offshore development center model , share it

Stephane Oworkers

In my role as CEO, I oversee the teams to ensure they are delivering great results. I ensure that Oworkers maintains the direction we set on the first day of incorporation. I also take care of our international client contacts. - Follow me on Linkedin - Follow us on Twitter

This entry has 0 replies

Comments open

Leave a reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>