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Dec 2014 - Insight - Doc # 253352

Vendor and Sourcing Management: Aligning Sourcing and Location Strategy with Business Objectives

Author: Rajeev Agarwal Adjunct Research Advisor
Abstract

This IDC Insight presents a set of selection and evaluation criteria that should be considered when an enterprise is making an outsource or insource and offshore or nearshore decision. In this Insight, IDC presents a sourcing decision model that an enterprise can use to make the sourcing and location selection. Variables that enterprises should consider include:

  • Strategic and tactical business IT applications
  • Strategic and tactical datacenter activities
  • Future staffing models
  • Impact of 3rd Platform technologies
  • Regulatory and compliance requirements
  • Impact on customer service and customer retention
  • Financial benefits

Outsourcing and offshoring initiatives are complex and require the participation of cross-functional internal teams such as IT, global procurement, finance, legal, project management, audit, and risk and compliance. This IDC Insight is designed for IT initiative owners, vendor and sourcing management (VSM) staff, and senior managers who are directly involved in managing IT and business processes.

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