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Systematic multisourcing delivers innovation and robust service integration

December 1999 | Euan Davis

As firms increase their sourcing, they need to stop and rethink the model. Adding more IT and business service providers into the mix without reference to a common framework creates problems of provider misalignment and gaps in the service delivery processes. Stakeholders miss out on game changing innovation while service delivery suffers. The problems stem from how each deal is configured and are exacerbated by providers wanting to upsell and squeeze out the competition. HfS Research believes that if firms multisource “systematically” with predefined delivery roles, mutual commitments and joined up roles and processes running between their providers and their stakeholders. Systematic multisourcing features a unified structure with clear terms of play for providers; it offers incentives for cross provider collaboration and innovation, and it puts the mechanisms that underpin service integration at its heart. Synchronizing sourcing governance, IT delivery processes, service level agreements and sourcing contracts around clear business outcomes drives business satisfaction by connecting your providers and business together through a model designed specifically for that purpose.

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(10 pages)

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