Should ITO Customers Also Outsource Service Integration?

Many sourcing and vendor management (SVM) executives with existing, single-source outsourcing contracts want to recast their agreements with a multisourcing flavor. But clients continue to struggle with the requirements for multisourcing, including contractual oversight and service integration. Even SVM executives with significant outsourcing experience find it hard to make suppliers work together effectively in multisourced engagements. In response, many suppliers now seek to play the role of the services integrator — coordinating the activities of other participating suppliers in conjunction with their own services. While the concept is promising, SVM professionals will only be successful if they fully understand the activities and related costs associated with services integration, and they should ensure that the contractual aspects of multisourcing are retained internally.