Cost-plus sourcing

How Cost-plus sourcing may sometimes be more suitable than traditional outsourcing?

What is Cost-plus sourcing?

Cost-plus sourcing is another term used for creation of a Captive Insourcing model that is dedicated by the supplier for servicing a single customer. So if you are a customer, you engage a supplier to build a team of resources exactly as per your requirements, very often getting involved in the selection of the entire team. The supplier provides the logistics and infrastructure for the team to operate. You pay the cost of these resources plus an agreed percentage mark-up to the supplier for the use of the logistics & infrastructure support. The mark-up will vary according to the level of responsibility assigned to the supplier and the service level criteria.

Comparison with Traditional Outsourcing

How can Mprovate help?

Mprovaate advises clients in the end-to-end journey for Cost-plus sourcing ranging from developing the Concept / Business case to finding the right collaborating supplier and implementing the programme towards meeting targeted outcomes. Mprovate provide this service as an independent Consultant driven by best practice and sector intelligence. For our visitors interested in knowing more about the benefits of using our Cost Plus engagement model, please click here to order a pdf copy.

We look forward to an open discussion on how and if we can help your organisation benefit from the above. Why not get in touch at today !