Technology
is constantly changing. IT outsourcing (ITO) strategies need periodic
refreshing, too.
While
it was once quite common to award a single contract to a service provider for a
broad range of IT services, multi-sourcing is the preferred approach today. The
two or more providers engaged usually have similar capabilities. In turn, that
creates continuous competitive tension, which is a good thing as the providers
strive to satisfy the client.
Application-services
units were an early adopter of multi-sourcing, using multiple providers in an
effort to get the best of the best. The allocation of work factored in business
unit alignment, geographic orientation and technical acumen. Infrastructure
services also sometimes separate computing services from data center and
network services.
When
considering a second-generation ITO relationship, organizations need to
consider the value of the relationship they've previously formed with providers
and make an honest call about the importance of that relationship to
operational capabilities.
We
generally tell our clients that their company-wide IT sourcing strategy should
reflect the lessons of prior sourcing endeavors, but emphasize the future need
of individual business units and corporate functions. Factors relating to
concentration of operational risk, access to added capacity, and attainment of
competitive tension frequently lead to a multi-sourcing outcome.
The
IT sourcing landscape for most companies is much more complex today than ever
before, demanding some serious governance expertise and commitment.
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