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IT Outsourcing as Governance

Multisourcing

Organizations turn to IT outsourcing to reduce costs and improve performance. Yet despite the proliferation of the practice, many relationships fail outright or deliver declining returns over time. Multisourcing authors and Gartner Inc. analysts Linda Cohen and Allie Young attribute such failures to "compulsive" behavior, in which firms reflexively turn to outsourcing without adequate benchmarking or consideration of future impact. And once engaged with an outsourcer, companies often micromanage how services will be delivered rather than define the outcomes these relationships should achieve. With multisourcing, by contrast, firms proactively manage a blend of internal and external service providers; the focus is on governing interrelationships and ensuring results. While the book doesn't provide groundbreaking insights, it includes examples from the authors' client work, along with practical information, such as five steps every organization must undergo as it considers outsourcing as well as guidance in governing successful outsourcing relationships over time. (243 pages, $35)

Lauren Horwitz, former managing editor, production, for CIO Decisions, is now managing editor for TechTarget's Data Center Media Group. Write to her at lhorwitz@techtarget.com.

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