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Although most organizations by default employ an array of partners, service providers, and internal resources, few realize the strategic importance of blending internal and external providers in achieving business goals like agility and growth.
Result of a study* conducted among Fortune Top 500 companies’ CEOs
OUTSOURCE FACTs:
 In the following years, you will be outsourcing more...not less! Gartner 2006.
12% of Outsourcing spending in 2005 will involve offshore resources, growing to 19% in 2009. Saugatuck Tech 2005.
High quality service levels from top tier vendors, customers should expect to pay in the $24 to $30 per hour range for offshore labor. Forrester Research 2005.
3/4 of U.S. companies outsourced some or all of their IT activities in 2004, and that percentage is likely to increase. Global Outsourcing Report, 2005.
Global revenues on outsourced medical transcription services in 2005 is already estimated to be 2.2 billion dollars. XMG Study 2006.
...offshore outsourcing will create more than 337,000 jobs by 2010. Information week. November 2005.
MULTISOURCING KEY THEMES:
If your organization is willing to multisource, you can consider the following:
- You must have a Multisourcing Strategy, that considers the complexity of Multisourcing and the rapidly changing needs of today’s businesses in order to know how it will use sourcing to meet its long-term goals.
- Multisourcing governance: is the single most important factor in determining success because it will help you achieve positive outcomes from your sourcing relationships through implement your strategy, enforce it, change it, and adjust it to market changes.
- Multisourcing is built on a network of relationships – not transactions. Managing relationships is vastly different from managing one-off transactions – it means that you have to be concerned not just about what happens today but about ensuring a positive environment for working with your service providers tomorrow. This approach needs to dominate your thinking in how you deal with service providers.
- Multisourcing requires creating measures that matter. Service level agreements often measure incidental items that have no bearing on business outcomes. Whit every step you take in Multisourcing, from strategy to governance to relationship management, you need to keep in mind the imperative of creating meaningful measures that help managers steer toward required business outcomes.
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