Sourcing and vendor management (SVM) professionals need to know their strategic objectives before starting a new sourcing initiative. But making a smart sourcing decision depends on many factors, including your own organizational capabilities, new business requirements, and existing market offerings. How do you make sense of it all? While new market offerings should indeed influence companies' sourcing decisions, Forrester finds that too many companies fail to properly align their internal conditions — such as their own capabilities (skills and experiences in service areas and process maturity) — with the complexity of their existing services environment and business requirements. This report explains how SVM professionals can ensure that each individual sourcing decision is aligned with an overarching sourcing strategy, one based on a range of internal and external factors.