Global Sourcing Needs Of Its Customers Through Its Co-sourcing Model

By Author: Martin Lobo
Total Articles: 355
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The increase in the dependency levels of the business organizations on the information technology has made organizations ready to face the aggressive competitive markets. However, such increased dependency has moved IT from being a support function to a vital business factor in most industry segments. Further, to maintain their flexibility in IT functions organizations have taken the route of outsourcing most of the functions. The movement from the traditional support structure to the critical component of all business process has made it difficult for organizations to plan out their long-term budget, as one cannot always assess the cost of innovation.

Contemplating the problems arising from such situations, the leaders in the field of IT services have designed methods to fulfil the global sourcing needs of their customers through a process which would benefit both the clients as well as the service provider. Co-sourcing is a business practice wherein the external service provider in collaboration with the members of the client organization performs the service. This process earns an advantage over the outsourcing model ...
... in that it minimizes the risks linked with outsourcing, brings in transparency, control and clarity over the process co-sourced.

The Co-sourcing model of IT outsourcing which is based on a partnership between the customer and the service provider, offers the clients the flexibility in choosing the service delivery options ranging from asset light to cloud based services to business ready infrastructure to support SaaS platforms. Further, the co-sourcing partners are also well equipped to provide the clientele with setting up shared or dedicated delivery centers instead of opting for IT infrastructure outsourcing. Co-sourcing model can also include the process of outsourcing part of software development or software maintenance activities to an external organization, while some development in-house.

This would actually give both the organizations a better insight into the process. Based on the fundamental aspects of transparency, flexibility and value addition, the Co-Sourcing model with its striking difference from the traditional IT outsourcing one is today a vital part of the success oriented business strategies. This approach of IT outsourcing provides a number of benefits to the organizations. With an increased coverage and a decreased overhead cost, this process turns a fixed cost model into a variable cost one. Further, in a highly competitive business environment, this model helps customers provide global solutions with flexibility for capacity management and lesser load on employment liability. Some of the co-sourcing models adapted by business houses are managed security services, Smart Service Desk Solutions, Virtual Support and Project Management Practice.

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