Do You Know the Advantages of the Co-Sourcing Model?

Serban - Do You Know the Advantages of the Co-Sourcing Model?

Outsourcing is a very common practice in today’s companies. Outsourcing to another company’s personnel to perform tasks that require certain specialization can be very beneficial in terms of productivity, efficiency and even savings. However, you’ve probably also heard of co-sourcing, a model that has also been gaining a lot of relevance in the business world and Human Resources for quite some time now. Do you want to know what it entails? How does it differ from outsourcing? What are its advantages? We’ll tell you about it in our blog. Continue reading!


Current context

Because of the COVID-19 pandemic, many companies have had to accelerate their digital transformation plans and learn how to operate in remote environments. In this process of digitization in record time, some companies have been affected by shortage of staff and resources with the necessary skills to meet the new technological challenges. In fact, according to a survey conducted by Boston Consulting Group, 79% of the 200 companies surveyed have required help from outside vendors for aspects related to the digital transformation of their business.

Moreover, where previously there was a demand for outsourcing of specific services such as storage, infrastructure, etc., what companies now need is added value in contracted services, with maximum excellence in terms of efficiency that allows them to save costs.


Outsourcing vs. Co-sourcing

When we talk about outsourcing, we refer to a model in which a company delegates part of the work, operations, or even the management of certain areas to external vendors, instead of dealing with them internally.

Co-sourcing is actually a form of outsourcing, but in this case the approach is that of a partnership between the client company and external company that provides the services, sharing the responsibilities and risks of the activities contracted. Thus, with co-sourcing, external resources are obtained and become part of the client’s team, working side by side with internal staff and performing the same activities that would be carried out in outsourcing, but in a much closer way.


Advantages of the co-sourcing model

companies are adopting the co-sourcing model because of its numerous advantages. Here are some of the reasons for its recent success:

  • Flexibility: One of the main advantages of co-sourcing is its flexibility. Sometimes internal teams have no time to focus on day-to-day tasks, project development, or they simply don’t have the required knowledge to carry out certain operations or specific activities, making it very difficult to meet the established deadlines. That’s where the co-sourcing model comes in as the perfect option for businesses that don’t need to expand their team permanently, with the costs that this would imply, but do need to receive assistance in specific areas at certain times, with specialized resources.
  • A single coordinated team: Co-sourcing generates a sense of belonging to the client company, given that the idea isn’t so much to hire a consultant as to hire another team member. In fact, it’s common to build a training and development plan with new employees in line with the client company’s needs, trying to make them feel part of the company and supported by colleagues with a similar profile with whom to share experiences and knowledge. This also makes it easier for employees to adapt to and internalize the client company’s policies and regulations, since to all intents and purposes they’re just another member of the internal team.
  • Cost reduction: Co-sourcing is highly beneficial for companies seeing that they can count on the support of resources to carry out certain tasks without the need to expand the internal team with a recruitment process. In other words, it allows companies to go from a fixed cost to a variable cost model, just paying for the service they receive while they need it.
  • Business confidentiality: While resources can be “shared” with the competition in the outsourcing model, with co-sourcing, the resources are part of your staff, offering more guarantees to preserve business confidentiality.
  • Enhanced productivity and efficiency: With the support of specialized resources for certain tasks or projects, the internal team has more time to focus on day-to-day activities and business objectives.

At Serban Tech, we have extensive experience offering IT co-sourcing services to all types of companies. Our approach is to act as a boutique, listening to the client’s needs and helping them find profiles that fit their needs while maintaining them over time. To learn more about our co-sourcing services and how our Talent & Culture team can help you improve productivity and reduce company costs, contact us here.

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