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Improving Business Operations: A Comprehensive Guide to Co-Sourcing

The article discusses the co-sourcing model and how it can help improve your business.

If you are looking for a way to improve your business efficiency, quality and profitability, you may want to consider co-sourcing. What is co-sourcing and how can it improve your business?

Co-sourcing is a type of outsourcing where you partner with an external vendor who provides specialized expertise and resources to complement your internal staff.

Co-sourcing is not a new concept, but a growing trend in the business world.

Unlike outsourcing, where you completely delegate a business function to a third-party provider, co-sourcing allows you to retain control and flexibility over your processes while benefiting from external support.

You can choose which functions to co-source, how much involvement you want to have in the process, and how to measure and monitor the results.

Examples of Co-sourcing

Some examples of co-sourcing are:

Accounting and finance: You can co-source your bookkeeping, payroll, tax, audit, or financial reporting functions to a qualified and experienced accounting firm, while keeping your strategic financial planning and decision-making in-house.

IT and software development: You can co-source your IT infrastructure, maintenance, security, or software development projects to a specialized and reputable IT company, while retaining your core business applications and data in-house.

Marketing and sales: You can co-source your marketing research, strategy, content creation, or social media management to a creative and professional marketing agency, while keeping your sales and customer service functions in-house.

Customer Support: Co-sourcing customer support allows you to enhance customer satisfaction without losing control over critical customer interactions. Partnering with a customer support agency enables you to outsource tasks like helpdesk support, ticket resolution, and multichannel communication while keeping your customer relationship management and strategic support decisions in-house.

Procurement and Vendor Management: Co-sourcing procurement and vendor management can streamline your sourcing process and improve supplier relationships. You can work with procurement experts to handle supplier selection, negotiation, and contract management while retaining control over strategic procurement decisions aligned with your business goals.

These examples demonstrate how co-sourcing can be applied to various aspects of a business, providing specialized expertise and resources while preserving control over strategic decision-making and core operations.

The advantages of Co-sourcing

Co-sourcing can offer many benefits for your business.

You can reduce your fixed costs and overhead expenses, such as the expenses of hiring, training and retaining full-time staff for functions that are for specialized or seasonal tasks or tasks that are not core to your business  and pay only for the services you need. You can also reduce the risks of errors, delays and compliance issues by relying on the vendor’s experience and quality standards.

By co-sourcing, you can also access the skills, knowledge, and experience of a professional team that can deliver high-quality results and meet your standards and expectations, increasing efficiency and productivity. You can also benefit from the best practices, tools, and technologies that the provider uses.

By co-sourcing, you can share the risks and responsibilities with the provider, and ensure compliance with regulations and industry standards.

Co-sourcing can be a powerful way to improve your business performance and efficiency. By choosing the right partner and the right tasks to co-source and provide specialized expertise and resources to complement your internal staff, you can reduce costs and risks, increase efficiency and productivity, improve quality and customer satisfaction.

Choosing a Co-sourcing Provider: Factors to Consider

But how do you choose the right co-sourcing provider for your needs? If you are interested in exploring co-sourcing as an option for your business, here are some factors to look for when evaluating potential partners:

You want a co-sourcing provider that has a proven track record of delivering high-quality services in your industry and domain. They should have the skills, knowledge and tools to handle your specific requirements and challenges. Look for testimonials, case studies and references from their previous or current clients.

Also, look for a co-sourcing provider that shares your vision, values and goals. They should understand your business culture, expectations and standards. They should also be able to communicate effectively and collaborate smoothly with your internal team. Look for evidence of their communication style, work ethic and feedback mechanism.

Next, you want a co-sourcing provider that can adapt to your changing needs and demands. They should be able to adjust their scope, resources and delivery according to your project specifications and timelines. They should also be able to scale up or down their services as your business grows or shrinks.

Lastly, consider a co-sourcing provider that can protect your sensitive data and information. They should have the necessary policies, procedures and systems to ensure the confidentiality, integrity and availability of your data. They should also comply with the relevant laws, regulations and standards in your industry and region. Look for certifications, accreditations and audits from their security and compliance partners.


Co-sourcing is a business strategy that involves outsourcing some of your tasks or functions to a third-party provider, while retaining some of them in-house. Co-sourcing allows you to leverage the expertise, resources, and capabilities of an external partner, while maintaining control and flexibility over your core processes.

Co-sourcing can be applied to various aspects of a business, providing specialized expertise and resources while preserving control over strategic decision-making and core operations. Some examples of co-sourcing are: accounting and finance, IT and software development, customer support, and procurement and vendor management:

Co-sourcing can leverage the expertise and efficiency of an external service provider and the control and flexibility of an internal team. However, choosing the right co-sourcing provider is crucial for the success of your partnership.

You need to define your objectives, scope, budget, timeline, expectations, and performance indicators. You also need to establish a clear governance structure, roles and responsibilities, and feedback mechanisms.

By looking for these factors, you can find a co-sourcing provider that can help you achieve your business goals.

Look for vendors who have relevant experience, expertise and reputation in your industry and function. Compare their offerings, prices, terms and conditions, and choose the one who meets your expectations and requirements.

Connext Global Solutions helps companies build custom, dedicated support teams in the Philippines. Learn more about co-sourcing to Connext Global Solutions.

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