29 July 2009
PA contributes to the Financial Times Digital Business July podcast.
This podcast, entitled ‘what’s going on with outsourcing?’ draws on PA’s recent global IT outsourcing survey to explore the trends towards multi-sourcing. PA highlights that multi-sourcing is very different from managing a single contract and that companies invest in their own skills to ensure that they can manage these contracts effectively and secure cost savings from them.
PA also comments on the debate around the ‘best of breed’ approach to the selection of contractors – securing the optimal technical solution for each area from different suppliers. This may not always be the most cost effective option and Jonathan says that the best approach for businesses may be to look internally and identify minor changes in the way they operate that could align them better with the way an integrated service provider operates. Alternatively where companies do decide to choose multiple suppliers, they should be aiming to be ‘best of breed’ in managing that portfolio of suppliers. If they do this then they will be able to secure both quality service from their suppliers and cost savings.
The other commentators in the podcast are Robin Barrett, former CIO of Amex who outlines the complexity of multi-sourcing and some of the pitfalls and Sean Keaton of law firm, Milbank, Tweed, Hadley and McCoy who underlines the importance of getting the right type of contract in place rather than trying to unravel it later which, although possible, is costly.
To listen to the podcast, click here.