Sourcing is an important element in the business strategy of most major organizations, both public and private. More often, non-central activities that do not directly affect or contribute to an organization’s competitive positioning are outsourced to others who can deliver them more effectively.
Effective use of IT sourcing can deliver immense benefits. It can position IT as a leader of business change by providing access to new technologies and way of thinking. It can also deliver sustainable reductions and increased control and manageability over the IT cost base. However, achieving these benefits is not an easy task as more and more companies fail to fully actualize these benefits as they struggle to :
establish a realistic business case, balancing the desire to maximize benefits and transfer risk at the same time while retaining responsibility and control over the business.
determine the right mix of internal and external services.
address the additional complexity involved in offshore sourcing; balancing cost savings and quality improvements against the risks involved in working with partners from different countries and cultures.
construct a commercially attractive arrangement adaptable to changing business conditions.
measure the benefits available from establishing internal shared service centers against the effort required to establish and run such organizations.
ensure that the anticipated benefits are delivered throughout the entire life-cycle of the arrangement.