Managing Multiple Outsourcing Relationships

This whitepaper is based on analysis of more than 500 business process outsourcing (BPO) contracts, interviews with buyers who have aggressively adopted outsourcing, and learnings from helping companies develop and implement governance and sourcing strategies. This whitepaper is published by the Everest Research Institute with support from Accenture.

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As companies striving for high performance by purchasing outsourcing services increasingly adopt information technology outsourcing (ITO) and business process outsourcing (BPO), they become more mature in their understanding of outsourcing and focus on optimizing their sourcing efforts. In addition to ensuring that their existing suppliers perform successfully, two other optimization levers are becoming important:

• Adopting an "enterprise" governance model
• Developing a supplier portfolio strategy
  
  

Companies choosing to utilize outsourcing on a broad basis have an increased need to implement enterprise governance and supplier portfolio strategies. As the scope of outsourcing increases, the complexity of managing the outsourcing efforts and their impact upon each other also increases.

Benefits of limiting the complexity across outsourcing efforts include:

• Higher-performing and more sustainable outsourcing solutions
• Reduced confusion and wasted time
• Better mitigation of risk
  
  

To achieve these benefits, it is essential to manage multiple outsourcing relationships carefully by governing the overall outsourcing landscape and strategically space the portfolio of suppliers.

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