Sourcing

Outsourcing has rapidly become a common practice of many organizations when IT is becoming more and more a commodity at the same time it is difficult to keep pace with developments in the innovative IT areas.

Outsourcing may bring cost reduction to organizations but it doesn’t necessarily create the right contribution to a company’s innovation strategy. The success of any sourcing strategy requires the establishment of effective sourcing governance.  Developing effective sourcing governance is not easy and requires a great deal of analysis and consideration.

Establishing sourcing governance is a complex task, requiring coordination to regulate and support multiple service providers. Organizations are required to factor in many aspects of their business processes. This includes receiving business information services that continuously correspond to the business needs, at all levels, and to be delivered at best prices and conditions. Factors to consider in setting sourcing governance encompass:

• Management methods and processes
• Organizational roles and responsibilities
• Service Delivery rules and agreements