Why Read This
Most enterprises recognize that newer IP technologies are important to enable operational efficiencies. But tough economic times are causing sourcing organizations to review their approach to purchasing network and telecom (N&T) services with the aim of cutting costs. They need a better understanding of which service providers and services could enable them to achieve the best overall value for their money, while avoiding an unacceptable level of risk. Some firms will consolidate their spending with a single provider to improve their discount eligibility, but single-sourcing highlights the importance of vendor stability. Most firms will multisource to reduce over-reliance on one supplier in the current tough market environment. They will opt for vendors that offer innovation, flexibility, and lower-cost options. Vendor consolidation and multisourcing are not opposite approaches. In fact, consolidating suppliers before strategically multisourcing is an excellent way to achieve "best-fit" sourcing that includes lower-cost smaller and specialist providers.