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Why Do Organizations Outsource or Co-Source?

When it comes to technical service operations, there is an undeniable trend toward outsourcing. Consumer products companies, packaged goods companies, investment firms, banking, and insurance groups, they’re all discovering the significant advantages of outsourcing. Even telecommunications companies, with their vast IT infrastructures, are teaming up with service bureaus to meet the growing needs of their customers.

One niche within this growing trend is co-sourcing…that is, an On-site and Off-site blend of managing project implementation requirements. Whereas outsourcing is generally considered an all-or-nothing proposition, co-sourcing accommodates many levels of shared responsibility. And, whereas outsourcing is built upon a traditional client-vendor relationship, co-sourcing relies upon a partnership between client and service provider.

Why would any organization outsource or co-source technical service operations and put the quality of their internal and external customer relationships…and consequently their profitability…in the hands of a third party?

The two most common answers are:

(1) It allows organizations the avoidance of capital expenditures associated with creating, managing and maintaining a larger than needed in-house technical operation.
(2) It also allows organizations to remain focused on their core competencies.

Here Is How We Do It:

Phase 1 – The Plan
Evaluate analyze and document the metrics of where you are today and compare them to benchmarks of where you should be in the area of: Technical Infrastructure. The plan will recommend the quality and cost parameters required to improve your infrastructure to help meet the current and future demands of internal as well as external clients.

Phase 2 – Plan Modifications
Amend the document plan accordingly to help facilitate the implementation and review process.

Phase 3 – Plan Implementation & Review
Blend onsite, offsite personnel where necessary to help reduce time to cutover deadline. Also, this methodology continues the process of teamwork and communication thus building on the aspect of shared responsibilities as a means of an ongoing partnership. At the same time, keeping in mind the need to document and provide relevant information for the project review meeting.