Co-Sourcing Model Benefits

Published: 08th June 2011
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As IT moves away from being a support function to a key business enabler, the loss of control and inflexibility associated with the traditional approach has made it less and less favourable. Fundamentally, it is no longer possible to plan all aspects of costs and innovation over a 5 -10 year period upfront and package them as a business case and contract.

Co-Sourcing Model

Companies can now fulfil their global sourcing needs of its customers through the new co-sourcing model which provides a new and fundamentally disruptive sourcing proposition to companies that are primarily looking for flexibility and strategic control of their overall IT outsourcing engagements.

a)The new co-sourcing model is based on a collaborative approach to outsourcing.

b)It can be defined as a partnership between the customer and the service provider based on fundamental tenets of flexibility and transparency.

c)In a way it helps to reduce sourcing risks and provide better control over outsourced processes.

d)Some of the services include internal audits, risk management, process definitions and amendments, IT infrastructure management etc.

e)It may also include part-development of software or conducting software maintenance activities only.

By using the new co-sourcing model offered by consulting firms -

a)Customers have the flexibility in choosing the right sourcing model.

b)Companies can choose alternative delivery models like cloud based services (Saas)

c)They can also set up shared and dedicated delivery centres depending on their client needs while balancing cost and economies of scale.

On the other hand, the IT outsourcing firms offer the following benefits to clients if they choose to use the co-sourcing model.

a)They partner with other hosting partners across the world to host datacenter and field services.

b)They provide desk-side support and also e-bond with their client companies to ensure that clients receive a seamless and uniform service, irrespective of the geographical location of the functions.

c)They also deliver services by leveraging uniform and standardized tools and processes across the IT function.

d)They offer engagement flexibility depending on customer environment- whether it is completely multi-sourced or whether the consulting firm plays part of a larger framework where the company is the primary integrator.

Some of the other services provided by IT outsourcing companies may include information security services, managed desktop services, managed print services, managed network services, application management services, service desk services etc.

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