ICT services multisourcing
a model for Successful IT Sourcing
Success in today’s business environment is dependent on the development of more innovative and holistic IT sourcing strategies which attend to all the business’s needs – both in the short and long term.
But the good news is that provided your organisation has the internal capabilities and governance disciplines that a multisourcing strategy mandates. You can look forward to reaping dramatic increases in business value derived from IT, through this approach.
In this blog post, we examine current sourcing trends provides perspectives on what constitutes an innovative IT sourcing strategy and considers some of the key benefits and challenges associated with moving from a single-source model to a multivendor model.
Multisourcing defined-IT Sourcing
The IT services market has undergone a fundamental shift in recent years, and we have seen dramatic changes in the way the enterprise procures and aggregates services – from both internal and external providers. The previously polarised worlds of ‘big deal’ outsourcing and “buy/insourcing” have melded into a single broad market most commonly referred to as “strategic sourcing” or “multisourcing”.
In such a model, clients attempt to blend the best of the “big deal” outsourcing and the “insource” models to eradicate their negatives. A decade or so ago, the typical organisation either fully outsourced its IT or provided the function fully in-house through the IT department.
Today, in an effort to gain further competitive advantage, companies are opting to retain certain key functions in-house and employ best-of-breed service providers to perform specific functions. All the signs indicate the sourcing the environment is at a tipping point, in the utilisation of outsourcing and offshoring as service delivery models and the more organisations outsource – and offshore to service providers the more multi-sourced the market gets.
Organisations, therefore, need to consider multisourcing as a serious way of conducting business going forward. Service providers’ experiences in the market over recent years bear further
a testament to the evolution taking place within the sourcing marketplace. Service providers report a fundamental shift in client behaviour, for example, clients are increasingly electing to perform
some traditionally-outsourced functions themselves, especially those processes they deem strategic or core to their strategy.
When engaging with their service providers on specific functions, clients are requiring that services be tailored to their unique business requirements and integrated more tightly into their service delivery models. Service providers report a growing the expectation on the part of clients for them to be willing to share the responsibilities and risks associated with the initiatives they are involved in. Clients are also moving away from traditional contracts and engagement models in favour of more flexible and at times, highly customised alternatives. (I part – to be continued). Contact Musato Technologies to learn more about our innovative IT solutions and services and how they can boost your business growth, productivity and profitability.