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This chapter provides an in-depth understanding of the co-sourcing model, a strategic approach blending the benefits of in-house and outsourced IT services. It delves into the benefits and challenges of co-sourcing, which include expertise access, scalability, cost-effectiveness, risk management, and a few potential issues such as communication alignment, quality control, management complexity, and security concerns. It further outlines a step-by-step guide for implementing a co-sourcing strategy and provides insights on managing co-sourcing partnerships effectively.