Multivendor Sourcing: Setting Up Relationships for Success

by Michael Epner

Sole-source outsourcing relationships are dead. At least that's the feedback from Cutter Consortium's latest outsourcing survey in which 83% of respondents indicated that they are currently involved in multivendor engagements. Gone are the days when a single vendor provided everything necessary to address an organization's IT needs. Instead, a variety of suppliers are tapped to implement Web-based systems, packaged solutions, data warehouses, and other major IT programs. Diverse, though not always complementary, suppliers are often "teamed" with a charge to deliver complete solutions. As IT executives and managers consider multivendor outsourcing strategies and select vendors to carry them out, they must carefully plan for the resulting interrelationships. In many cases, a prime contractor will bid in conjunction with subcontractors -- the same relationship considerations apply to the selection of the right "package" of vendors.

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Multivendor Sourcing: Setting Up Relationships for Success September 2000