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For Sourcing & Vendor Management Professionals

How To Multisource Applications Services

April 21, 2010

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Many firms are currently recasting their single-sourced, all-encompassing IT outsourcing agreements towards a multisourced scenario — in some cases carving out application services. But many application development and maintenance (ADM) service engagements grow organically, individual scope of work by individual scope of work. In cases involving multiple ADM suppliers, principal challenges include building a framework that governs the involvement of the different suppliers, as well as guidelines for awarding subsequent work to those that do the best job. The task is complicated by the often fluid nature of preferred applications services partner relationships, where the roles of respective partners can grow or shrink more than is typical in infrastructure-oriented engagements. Sourcing and vendor management professionals should compensate for these concerns with a greater emphasis on governance and transition assistance.

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