When you’re in the business industry, your goal is to provide quality products or services with meagre costs. As such, hiring competent and talented employees will give your company a high income, and co-sourcing can help you. So, instead of using your current staff to do all the work resulting in them being overworked, you can look for a provider or agency that can share with you their employees and can work under you. With this, you can have productive human resources to help your company achieve its goals.
What Is Co-Sourcing?
A consumer and a professional service provider form a relationship in co-sourcing. For example, a corporation selects a service provider who collaborates with current employees rather than replacing them to complete a project. In this agreement, the firm’s employees play an active role in decision making and project planning, and they may even contribute to the final report’s preparation. This can assist firms in reducing the costs of their administrative tasks or back-office while still having control over the most crucial issues of the client connection.
The Importance
When you co-source, you can access different kinds of employees’ talents from different places. You can have staff that have different specialisations and expertise. Meanwhile, other companies have their reasons for doing this, like a simple cost-cutting on labour. But you don’t want to compromise quality for the price. Fortunately, this recruiting talent offers you to get the best of both. And with so many options from different service providers, it’s easy to find the right talent for the right amount of money.
The Advantages
This is centred on establishing a long-term commercial relationship with a business partner. It emphasises the conventional principles of trust, outstanding service, and quality that you’d expect from a partnership rather than a contracting arrangement. The company also has greater control over the operational process and has joint responsibility for delivering the finished product or service to the client. And unlike outsourcing, you can have complete control over the co-sourced employees. They will be under your company’s rules and regulations, and there will be good communication between the current employees and the co-sourced employees because they will be under one leader and be in one team.
The Disadvantages
Regardless of the advantages of sourcing from a third party, it is only advantageous if the quality you need is delivered. Anything less would be a colossal failure. A considerable disadvantage of it is the development of “Silo Mentality”. Silo Mentality is unwilling to share data with personnel from various divisions within the same firm. This approach is considered to lower the organisation’s productivity and, in the worst-case scenario, contribute to a broken corporate culture. Teamwork should be practised in the company for co-sourcing to work.
It’s all too easy for a business owner to get caught up in the advantages of co-sourcing without contemplating the consequences that will happen to the company. If you’re thinking about outsourcing, you will need to ensure it doesn’t damage your corporate culture. A healthy work environment increases organisational performance, so you don’t want to compromise.
There are numerous benefits and drawbacks to co-sourcing, which should be thoroughly considered before determining whether or not to pursue this method. Taking this lightly could have long-term ramifications for the company’s culture.
