Over the past 20 years, large public and private sector organizations have made significant use of third parties to deliver their back-office support functions. For some, this has been a metaphorical ‘sticking plaster’ applied to solve a short-term tactical need. For others, it has been an informed decision taken after the development of a carefully thought-out strategy, designed to allow sufficient flexibility to remain relevant in the medium-to-long term. So, where do you stand? Are you a tactical first-aid officer applying a quick fix to an immediate problem, or are you a strategic surgeon carefully executing a complex operation with enduring results?
To answer this question, first think about how you have arrived at the service delivery framework and models you have in place today. What led you to the operating models that exist in your organization? How complex are they? Who carries the financial and the technical risks? And how many people or interactions are required to get a problem resolved?
Whatever your answers, the reality is that most organizations today rely on delivery of a substantial part of their operations through a third party. As discussed in this ISG white paper, most have at some point applied sourcing ‘bandages’ to solve short-term business issues.
