Moving Beyond Outsourcing to Achieve Growth and Agility

The outsourcing industry has tremendously changed over the past decade, but cutting costs remain to be the primary reason that most organizations resort to the outsourcing route. There are many experts in different fields, from basic IT services to computer business processes in outsourcing. Organizations are increasingly obtaining services and capabilities from a shifting blend of internal and external sources to meet goals for cost efficiency, agility, and growth.

Many investors are stuck in good old fashioned outsourcing and needs to be change.

Information from Gartner Research said, companies should look beyond the traditional view of outsourcing and adopt a more disciplined approach, called multisourcing, if companies want to achieve business growth and agility.

What is multisourcing?

Multisourcing is a strategy that treats a given function, such as IT, as a collection of activities, some of which should be outsourced and others performed by internal staff. This approach, also known as "selective sourcing" moves away from the idea that all functions should be viewed as a commodity, easily handed over to a service provider.

Multisourcing is allowing global growth, capability-building, cost cutting fastening, agility improvement, and an advantage of competitiveness. For communicating, interacting with, and overseeing service relationships, both inside and outside the organization, a new mindset and framework are required.

Disorganized and obsessive outsourcing creates as many challenges as it solves. Organizations learn often too late that managing external services requires significantly different competencies and metrics than managing the same services when they are provided internally.

Outsourcing as we know is prone to failure because of breakdowns between outsourcing providers and clients, but the responsibility is far from being on one base. Progress and achievement of both parties are need to be reviewed; objectives as well, on a regular, formal basis.

Thus, applying a multisourcing management is a huge advantage to the organization, to skill up quickly to the many challenges that lie ahead.