August 22, 2006
Reality, Risks, And Best Practices For Managing Multiple Service Providers
with Christine Ferrusi Ross, Bill Martorelli, Ronald J. Furstoss
Executive Summary (This is a document excerpt)
As more companies adopt a multiple-provider outsourcing strategy, executives are struggling to install governance processes that are cost-effective, ensure delivery quality, and provide responsible oversight of multiple complex contracts. Most practitioners agree that current outsourcing deals fail to achieve expectations primarily because of deficiencies in account governance — and multiple providers add complexity and risk for benefits that may be more perceived than real. For those committed to a sourcing strategy with multiple providers, there are some specific tactics that can improve the chances of success, such as retaining decision authority for engagement milestones and creating clear ownership of different service delivery components.
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Forrester interviewed service provider, sourcing advisory firms, and end-user customers, including: CSC, Deloitte Outsourcing Advisory Service, EquaTerra, General Motors, Infocrossing, NASA, Pillsbury Winthrop Shaw Pittman, and TPI. We also used data from our Business Technographics® July 2005 North American And European Enterprise Infrastructure And Data Center Survey and from our Business Technographics August 2005 United States Enterprise Governance Survey. Related Research Documents
May 15, 2006, Tech Choices
April 12, 2006, Best Practices
February 15, 2006, Best Practices
December 15, 2005, Best Practices |
Clients Want More Selective Outsourcing Contracts — And Multiple Providers
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Original air date: Thursday, June 11, 2009
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