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. Our company can set up co-sourcing for very large operation.
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| Models >> | CO-SOURCING | OUTSOURCING |
| Synthesis | Client & vendor are PARTNERS They share responsibilities & control | VENDOR have full responsabilities CLIENT don’t have any control |
| Staff selection | Vendor preselects the staff Client chooses which one to Hire | Client doesn’t choose their staff Staff is selected by the vendor |
| Salaries policy | Client controls the salaries policy (transparent) | Vendor controls the salaries policy (non transparent) |
| team’s activity | Client controls his team’s activities | Vendor control team’s activities of client |
| performance output | Client manages performance output | Vendor manages performance output. |
| Vendor provides assets & Technology system | Vendor 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 WHEN | Long term need | Short term need |
| Size | 3 to 50 staff | Any team size |
| Type of process | Specific business process | Standard business process |
| Internal knowledge | Strong knowledge of the process to outsource | Weak internal knowledge of the process to outsource |
| Control | Want full control on the staff (salaries, benefits etc) | No need of control on the staff & operations |
| Management | want full support services & supervision (want to focus only on operations) | Want to focus on deliveries |
| Management | Have in house onshore project/operations managers | Non projects & operations management capability |
| Procedures | Have implement strong procedures to follow | no procedures all is outsourced |
| Team connectivity | Need strong interconnectivity between onshore & nearshore teams | No 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 |
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