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Multi-sourcing (pdf)

Guidelines 329

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Increasingly, organisations are looking to multi-source due to one dominant factor - the economic environment and the need for all business to reduce costs. Certainly the temptation to move towards multi-sourcing is understandable - the mega single source outsourcing deals in many cases failed to deliver against expectations. By breaking up these contracts and allocating elements to different supplier skills, organisations hope to improve competition, maximise supplier skills and critically drive down costs to achieve better contract pricing.

While multi-sourcing has the potential to deliver significant benefits, it is critical to get it right. These Guidelines set out the key considerations when multi-sourcing drawing on the various parties involved in ensuring success - clients, providers, lawyers, and integrators, combined with our own views based on our consulting experience with private and public sector organisations internationally. The Guidelines start by outlining the multi-sourcing challenge and strategic drivers before exploring the key dimensions required for success.