Co-sourcing is a type of outsourcing where the outsourcing agreement is a collective arrangement between one vendor and multiple clients. From the perspective of the outsourcing organisation, co-sourcing is the process of outsourcing certain business activities to only one external vendor (Edguer and Pervan, 2004).

Information about Co-sourcing

Co-sourcing is sometimes described as bringing outsourcing advantages in-house as it is often credited with bringing in outside expertise while still cutting costs. It is particularly advisable for areas or functions that the organisation does not want to completely give up to an external provider.

Co-sourcing can allow companies to gain access to the expertise and resources of their partners to supplement or completely replace internal resources while still keeping management and decision-making responsibilities over the function. Co-sourcing services can be broadly divided into four tiers: Tier 1 = Foundational support, Tier 2 = Transactional support, Tier 3 = Analytical support, Tier 4 = Strategic support (Gross, 2006).

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