Multi-sourcing - the hidden implications for your organisation 

The rationale for multi-sourcing is straightforward – you deconstruct an overall service into constituent parts and you contract with best of breed suppliers to deliver each constituency. Through letting smaller pieces of work to suppliers with the greatest capability and capacity, the outcome should be better quality for a lower price. But is this too good to be true?

Graham Beck, senior outsourcing advisor at PA Consulting Group and author of the IT Advisor (external link) October edition of Guidelines, asserts that “multi-sourcing can only be a viable strategy, if an organisation has the appropriate capabilities and managerial disciplines to discharge its responsibilities”. These responsibilities are not always apparent, but they have big implications in terms of: 

• the retained organisation having the technical skills and service management experience to integrate a multi-source approach

• the maturity of the organisations existing service management approach 

• the application of governance for both the organisation and the supplier community.  

Shortcomings in any of these areas can weaken the multi-source solution. The key to success in multi-sourcing is:

• having a retained organisation who possess the appropriate technical skills and management disciplines to bring each service element together

• applying effective service management processes and governance

• the creation of a management framework for the integration of multiple suppliers.

At PA we think differently about sourcing. Our expertise and pragmatism can guide you through the entire sourcing life cycle from strategy definition, to delivery and beyond. We can ensure that you have the appropriate skills in your organisation coupled with the appropriate processes and disciplines to ensure you optimise your supplier relationships.

We can help you to find out if multi-sourcing is the right option for your organisation. To speak to a PA expert contact us now.