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Format: Hardcover, 1st ed.,
288 pp., $35.00
ISBN: 1591397979
Harvard Business School Publishing, November 2005
For bulk orders, email
800 CEO READ
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Outsourcing has become an integral part of successful business operations. So successful, in fact, that many executives pursue outsourcing compulsively—putting everything from finance to R&D on the block without careful evaluation, benchmarking, or consideration of future impact on company success. The result: research shows that fifty percent of outsourcing contracts signed during the last three years will fail to meet expectations.
Gartner sourcing experts Linda Cohen and Allie Young argue that yesterday's ad-hoc sourcing approaches are ineffective in today's complex terrain. Based on extensive, multiyear research, this book unveils a new operational model—Multisourcing—in which internally and externally delivered services are blended seamlessly, governed closely, and evaluated continuously for effectiveness and efficiency.
Multisourcing is not simply outsourcing improved—it is an innovative discipline that takes organizations beyond "quick-fix" cost-cutting to enable capability building, global expansion, increased agility and profitability, and competitive advantage. As such, Multisourcing requires a new mindset and frameworks for communicating, interacting with, and overseeing service relationships both inside and outside the organization. Central to success is the creation of a sourcing strategy that is tightly linked to the overall business strategy and constantly monitored by an effective enterprise-wide governance system.
Through practical frameworks and illustrative company examples, the authors guide managers in creating a customized plan for managed Multisourcing, including how to:
- Assess their current sourcing strategy
- Make smart build vs. buy decisions
- Evaluate providers and strike the right types of sourcing deals
- Replace adversarial provider transactions with win-win relationships
- Manage the political implications of outsourcing
- Set up effective governance disciplines to enforce and adjust the strategy as needed
- Create meaningful measures that steer managers toward required business outcomes
A new approach to sourcing from leading experts in the field, Multisourcing is the essential guide for executives who want to position their companies as tomorrow's industry leaders.
Linda Cohen is a Managing Vice President in Gartner Research, where she leads the Strategic Sourcing practice. Allie Young is a Vice President, Gartner Research in the Strategic Sourcing practice.
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