Newsletters Welcome, Guest Log In | Register

Business of Tech

Alignment, staffing and culture are often more critical than software and apps

About this Blogger RSS

Subscribe

Sign up now and get the best business technology insights direct to your inbox.

  • Daily Edge
  • CTO Edge Update
  • Business Tools & Templates
  • Aligning IT & Business Goals
  • Maximizing IT Investments

1

The Yin and the Yang of Multiple Suppliers

Posted by Ann All Aug 22, 2006 10:49:36 AM

As with anything in business -- and in life -- there is a yin and a corresponding yang with outsourcing deals involving multiple suppliers.

 

Increasing the number of suppliers adds flexibility, and complexity.

 

Recent studies by PMP Research, among others, show that companies are developing a preference for using multiple suppliers rather than the "one stop shopping" deals that have been traditionally favored in outsourcing.

 

Among the advantages, according to this IT Week article: "competitive tension" that often yields more advantageous deals. (We think this means suppliers often do some pretty creative tap dancing if there's an ambitious understudy in the wings.)

 

A new outsourcing model does create a need for new management techniques. An early leader in this area appears to be global banking behemoth ABN Amro, which is utilizing a number of interesting techniques to keep its vendors in line. Among them: having IBM serve as a "guardian," accountable for resolving issues with not only itself, but other suppliers.

Add a comment Leave a comment on this blog post.
Aug 28, 2006 6:13 PM Guest Paul Roberts  says:

IBM has deleoped a horrible reputation in the outsourcing world.  They offer low wages compared to the industry standard with no benefits.  No one except people living with mom and dad, freash out of college could survive being employed by them. 

Software Forum: Information On Demand Virtual Experience

This interactive virtual forum presents leading IT experts providing the insights you need to turn your information into a strategic driver for innovation, business optimization and competitive differentiation.

Performance Under Pressure: The State of Enterprise Web Application Quality and Availability

This research study finds that Web application issues are an all-too-common problem and examines these Web-based enterprise application issues from two perspectives: that of an online customer and that of a site manager.

Data Deduplication

Data manipulation strategies that make data stores more manageable and reduce the need for storage capacity and its associated costs.

Mobile Computing Optimization

Mobile computing solutions, tips, and expert commentary that increases the usability and bottom-line benefits of your mobile computing assets.

Service Oriented Architecture (SOA)

Service-Oriented Architecture is the catalyst that allows today’s companies to respond to business demands faster and more effectively than ever.

Security SaaS Solutions

Hosted security solutions that not only protect your data, but reduce your security management TCO, as well.

IT Manager Development Library

Learn all the basics of IT Management: budgeting, staff motivation, business planning and more with this unique eBook bundle.

Learn more >

All About Reducing Your IT Costs

Looking to cut costs? Use this research-driven Excel tool to pinpoint which IT cost reduction measures best fit your needs.

Learn more >