Co-sourcing – A Viable Alternative to Outsourcing

Co-sourcing is an alternative or a resistance to outsourcing. It gives you the ability to take on existing teams and is based on a partnership approach. You will be able to retain the existing skills of your department and in addition have the ability to consolidate and optimally utilise them. When you use such an approach, you will keep your Finance Head happy as the reduction of your headcount will automatically reduce costs and your shareholder is also happy as there is increased wealth creation through cost savings. The relationship model between the employee and employer has not changed over the last thirty years despite the fast paced nature of the IT industry. Globalisation has meant that the recessions and technological trends affect everyone. Companies need to have the ability to respond to change. ‘Right Size’ classic models don’t work anymore and the outsourcing versus in-house model is outdated, co-sourcing is something that is entirely different. The changing face of Employment Law in the UK and across Europe is another factor that has to be borne in mind when any organisation decides to employ more personnel. The ‘Co-sourcing’ offering was developed to provide a more tailored approach, and create a balance of efficiency and service delivery. When you choose to use a co-sourcing model, there are a number of advantages, some of them are that you can: • Turn fixed costs into variable cost • Turn your headcount into budget • Retain control of your ‘high-end’ competencies and co-source the non-strategic functions • Reduce liability of EMEA people costs • Alternate skills when required as you are buying a service not just bodiesrn• Increase skills when there are ‘peaks’ such as project rolloutsrn• Service is measured & documented with agreed upon KPIs & SLAs • Have a 12 month working year despite an average working year being 10 monthsrn• Utilise an established global shared service model • Have two people who co-source a role or functionrn• Gain an extension to your existing team, your clients / users will not know about the service provider • Provide your clients with 24x7x365 hours of coverrn• Deal with a single account management team, single P&L, single SLA and single contract • Reduce the cost of your infrastructure ownership • Manage TUPE effectively In addition you will also get real time cost management solutions, site-inducted professionals who are permanent employees of your supplier and a Site Bible. IT co-sourcing solution has proved invaluable to many organisations, allowing service provider to manage the unscheduled peaks in demand, without reducing levels of service, or applying cost penalties. This partnership model will reduce the ongoing employment liabilities, risks and fixed costs associated with the use of multiple agencies and contract staff across Europe. Through this partnership model, organisations get a variable cost model that removes the inflexibility of traditional fixed cost service, delivering a shared risk and reward model that ensures them to only pay for those services that they receive. Co-sourcing is an alternative to total outsourcing, allowing the client to retain control by partnering with service provider.