What Is Co-sourcing?


Co-sourcing is the approach that involves integrating external professionals and service providers with internal company departments. This model allows internal staff to collaborate directly with members of the outsourced team.

Outsourced employees might not share a physical office with the internal team, allowing for remote work and telecommunication options.

Benefits of co-sourcing

Co-sourcing is an introductory method for incorporating external service providers, offering a preview of potential long-term partnerships. Key advantages include:

Enhanced team efficiency

Co-sourcing adds more personnel without proportionately increasing costs. This approach maximizes team output without incurring additional overheads or employee benefits expenses. It also motivates internal employees to match the productivity levels of their co-sourced counterparts, helping eliminate inefficiencies.

Cost reduction

Consider a department with 50 internal staff paid $20 per hour. If management introduces 50 co-sourced workers at a fixed rate of $10 per hour, the department doubles its workforce while halving the cost of additional personnel. This setup avoids extra overheads like utilities and office space that typically come with expanding an in-house team.

Improved quality assurance

Co-sourcing can lead to stricter quality controls. Internal knowledge of best practices ensures that the work of outsourced employees undergoes rigorous quality assurance. This process not only maintains standards but also sets clear expectations for performance. Managers can develop systems to highlight outstanding contributions from both internal and external team members.

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