A new report from award winning benchmarking, sourcing and transformation advisory firm, Alsbridge, Inc., reveals the six key areas needed to achieve a multi-sourcing strategy that is both productive from the start and sustainable into the future.
Embarking on a new sourcing relationship is a more complex endeavor than ever before. There was once a time when cost savings was the singular focus of a sourcing strategy. However, the focus today is on “Right Sourcing.”
“The new focus on right sourcing brings added intricacy to the nature and breadth of organizational change and transition planning that is required for enduring sourcing relationships in a multi-sourcing eco-system,” says Alsbridge CEO, Chip Wagner. “No longer are the right scope, right business case, right provider(s), and right contract sufficient for success. Now it is the right operating structure, vendor management framework and contract simplification that are drivers of sourcing effectiveness.”
“In our experience, many clients are surprised by the amount of internal organizational change management, transition planning and execution needed to make the multi-sourcing strategy both productive from the start and sustainable into the future,” explains Wagner. “It takes active and focused preparation in six key areas to achieve a successful initial transition and a viable relationship that achieves planned business case benefits.”
Organizations when right-sourcing functions and resources, will need to be able to ask and answer several interrelated questions including:
- What should our plan to transition and transform functions, knowledge, tools, people, projects and processes to our new hybrid sourcing model look like?
- How do we prepare our people for the change and the opportunity the change represents?
- When and how do we communicate what these changes mean for our organization to individual team members?
- What operational components should we retain for non-sourced functions?
- How should the retained organization be structured?
- How do we select and prepare members for their changing roles?
Whether seeking the assistance of an experienced third party sourcing advisor, or deciding to ‘DIY’ (do it yourself), the preparation described in this two-part series needs to be done, and done thoroughly, to reduce transition risk and lead to successful sourcing relationships.
For answers to the above questions, download the complete report Six Keys to Success in a Multi-Sourced Ecosystem: Right Sourcing 101.
About Alsbridge Inc.
Alsbridge provides world class sourcing advisory and benchmarking services for the CIO, CFO and CPO. We’ve helped hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, hardware and maintenance, network services, software and maintenance, application support and development, business processes and cloud services. Alsbridge was ranked the #1 outsourcing advisor in the world by the International Association of Outsourcing Professionals (IAOP) based on the value delivered to clients. This commitment to delivering value to our clients has made Alsbridge a distinguished member of the 2010 Inc. 500 fastest growing privately held companies in America.