What is Co-Sourcing ?
Simply put, it is a business arrangement in which work is performed both by internal staff and external contractors. In co-sourced arrangements, external workers are often used to handle peak workloads or to provide expertise that internal staff lack.
Whether you belong on the Buy or Sell Side the opportunity to supplement your business imperatives by introducing an already experienced team is an excellent tactic to include in your overall strategy. During high traffic times or if your own team is new or in-experienced, using a functional co-sourcing arrangement can be very effective.
Why Co-Source ?
Most businesses don’t have the budget or even the desire to directly employ the optimum level of staff for all situations and, given our contention that ‘the average is low’ it may not be possible to employ mature, experienced and competent people at the times they are most needed.
Co-sourcing with the right partner can provide coverage for the risks of pursuing a direct FTE reduction plan and managing peak loadings. Flexibility of scope of engagement as well as a contract driven by outcomes can provide business with a total sustainable solution to their needs.
How is Co-Sourcing Done ?
Successful co-sourcing requires careful tactical planning with a trusted partner. A clear understanding of the ‘Why’ and the commercial implications for your business are vital too (Reassign can work on the ‘What’ with you). It is also most important to gain support from your MD/CEO/COO by introducing the concept of co-sourcing as an option in your business strategy. This way there can be no surprises for the business and a greater likelihood of ‘buy-in’ from senior leadership.
Co-Sourcing is a construct of open, informed discussion among empowered people with a more than reasonable understanding of the drivers behind the business. If, for example, an empire-building mentality is prevalent where the primary measure of success is how many people work directly for an individual (read Emperor), then co-sourcing, despite being a sound financial and practical proposition, may not be the right strategy. Similarly, if there are concerns that a co-sourcing initiative may reveal deficiencies in a department’s or an individual’s skillsets, then again, this is probably not the right strategy.
On a cautious note, there are many Procurement Category Specialists for hire in the consultancy space, but they are rarely able to offer strategic options that address overall procurement issues, and they certainly don’t have very much to say about the Sell Side (but that’s another story). Generalist business consultants offer homogenised Business Transformation which you likely do not need. Reassign takes a forensic approach to a specific set of business problems. We will take you to the core of your problem and talk with you about a solution.
If this or any of our other pages appeal to you and you have identified a need (whether clear or still a little hazy), give us a call. We offer a professional response to most Buy and Sell Side issues and we’d be happy to help you to take the first steps towards the right outcome.
Contact us if you’d like to have a frank discussion on this or any related subject.