MultiSourcing…A Critical Strategy for Aligning IT with the Business Mission

Authored by Chuck Lyles, CEO @ GuideIT

Chuck Lyles, CEO

Chuck Lyles, CEO

A growing trend in IT Services is the implementation of strategies designed to migrate IT operations from a single provider to an environment leveraging multiple specialty companies. As the market matures, this trend can better enable CIO's in executing strategically, driving greater effectiveness and efficiency in operations. 

So what are the high level benefits and outcomes of multi-sourcing?

The right multi-sourcing strategy allows IT teams to dilute risk with partners who specialize in a particular discipline or technology.  Additionally, this type of strategy facilitates greater flexibility enabling the internal agility necessary for adapting to changing priorities…a consistent theme in supporting the broader business mission. Specialized firms are more responsive to customer needs, more motivated to consistently drive innovation, and better at implementing disruptive technologies that drive effectiveness through more automation.

What are some of the challenges and potential pitfalls?

Accountability. Yes multi-sourcing is a critical approach for leveraging IT in supporting the needs of the business. Yet to be truly strategic in this approach, leaders must require accountability. Fail to create an environment of accountability in execution, and the strategy isn’t worth the paper it’s written on. Another challenge…Simplicity. A “multi” approach by definition, yet absent of sound strategy, has the potential to introduce complexity and silos into your environment. So what’ the answer for ensuring accountability and simplicity in your multi-sourcing approach? Clear purpose, aligned incentives, and shared values. Easy to say; tough to do. More on this in future posts.

What’s your perspective on multi-source strategies?