Insource, Outsource and Co-source – Things to Know

Insource, Outsource and Co-source

Often, small and middle-sized businesses debate about the way of their accounting functions. The best instances to use them vary based on the costs, operations and growth of a company. This article will give an elaborate idea on the differences between outsource, insource and co-sourced and the way to choose them

The distance internal audits to choose from:


A way for companies to establish control in a budget way and, at the same time, maximise all the internal audit capability is what co-sourcing is about. In this arrangement, outside vendors give access to the in-house auditors to maintain their responsibility during the whole process of the internal audit. At the same time, they can rely on outside sources for specialised support. It is very different from outsourcing, where the company loses control over its activities.  


It is a practice where the work supposed to be performed on the contract is performed in the house itself. In this process, experts are brought in to fill the temporary needs of the company. For instance, in-house engineers write the manuals for the equipment they have designed rather than send it to a technical writing firm. 


It is a process of hiring a third party from outside the company to perform certain tasks. It is different from the traditional ways where the company’s staff and employees perform the duties by themselves. A lot of cost reduction is achieved through this technique. 

What to choose?

During the business transactions, the accounting functions lead to different results in terms of profit. So the different purposes these models include

  1. For a company, during difficult situations, meeting too many things at once can be a tedious process. It is where outsourcing makes sense, where the experienced provider will take care of all the requirements and transactions of the company. In this manner, the internal personnel of the company can focus more of their time on more significant concerns.
  2. The insourcing metaphors are preferred more by a midsize company as they would have very few resources to manage. Therefore internal audits and transactions can be carried out by the internal personnel themselves. However, there would be situations where the internal team is not sure of certain insights. 
  3. It is where co-sourcing kicks in where external teams can work to make progress. Be it a wonderful team but a bad leader or vice versa, the whole situation can be well taken care of through co-sourcing.

More about Co-sourcing

Combining services with the outside business to achieve the goal is the true aspect of outsourcing. There are evolving concepts in the same such as the transcription co-sourcing where, say, the in-house typists are combined with outsourced transcriptionists for an effective service. 

It can prevent many development barriers and delays due to in-house personnel inconveniences like holidays, sickness, recruitment issues and many more. Moreover, this model will help the in-house personnel to learn effectively from professionals. Access to highly skilled professionals can shape up the face of the company in a common sphere.

Is co-sourcing a better idea for a middle-size business?

Even though the accounting models are purely based on the resources and requirements of the company, for a middle-sized business that is growing, there are many things to know and understand. It is where the futuristic values that can be achieved through co- sources make sense.

For simple integration and training and to manage the time for turnaround compliance with ease,  co-sourced functioning makes more sense. Overflowing resources and increased reporting, and KPI management are also achieved through this model. Hence every growing company should at least once follow this model.

About Saif Jan

A great passionate about learning new things, Blogger and An SEO consultant. Contact me at [email protected]

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