What is multisourcing?

Answer 1

i m adding synopsis of multi-sourcing friends i hope u ll get every thing from here SHAILENDRA PAL (ISBR)BANGLOREMULTISOURCING Summery- One of the key feature of outsourcing industry over the past few years has been the trend away from the large end-to-end outsourcing deals. Companies that make use of outsourcing are increasingly looking to so-called multi-sourcing arrangements, where the business receives its service from a number of best-of-breed service providers.This marks the clear contrast from the feature from the really caused outsourcing to burst into life in the 1990 i.e the expension of full scope, full service, long term out sourcing contract with the single prime service provider. Multi-sourcing that seamlessly blends internally and externally delivered services not just to cut cost or gain efficiencies, but to maximize growth, agility, and bottom line result Why Multi-sourcing? One of the main drivers behind the multi-sourcing approach is the perception that it better leverages competitive pressures. Critics of the single sourcing approach argue that handing over the IT environment to a single supplier leads to the supplier becoming 'indispensable' and makes it difficult to award new project to other suppliers. That can occur through a new supplier's efforts to win work being stymied by the incumbent supplier withholding critical operational information and denying access to relevant personnel. Multi-sourcing, however seeks to avoid the customer being locked in to a board, long term relationship with a single supplier And to market test more project and services on a case-by-case basisAdvantage of Multi-sourcing Multi-sourcing contracting structure can allow a customer to reduce its reliance on a single supplier, and allows the sourcing of service components from "best -of-breed" suppliers. How ever the essential value of a multi-sourcing structure is its potential flexibility Aim of Multi-sourcing Multi-sourcing is a greater scale of outsourcing. In a business sector, its departments can hire several external service providers for a task. This asks for a high project expense. Things to take note of when in choice of this kind of outsourcing are the communication system, socialization and proper monitoring of work internal or external in the business firm. Multi-sourcing is a cross over from the classic outsourcing that we usually know Art of Multi-sourcing The days of having only one outsourcing task is now gone thanks the evolution of new outsourcing strategies, one of these strategy is Multi-sourcing. Collaborative outsourcing may be the way to go describe the main aim of Multi-sourcing. The commercial advantage of 'keeping the vendor honest' by always having multiple mature options, and having a flexibility to move work from internal departments to vendors and even across providers whenever the needs arises. Multi-sourcing strategy offer less risk Even five year ago a multi-sourcing strategy may not have been possible as true. Specialist partner didn't really exist but this is changing. As the outsourcing market has matured and as competition among provider has increased, providers have been forced to specialize to gain market share and competitive advantage Limitation of Multi-sourcingChoosing a Multi-sourcing contracting structure may well prove to be the most appropriate choice for a customer, However multi-sourcing is not the Holy Grail of outsourcing contracting models and presents a number of challenges which a customer needs to understands and address early in the procurement process Conclusion Multi-sourcing where judiciously employed, can be an effective model for conducting an outsourcing. Its main advantages are that it allows a customer to seek best-of-breed service offerings from a range of suppliers, gives a customer more direct relationship with, and control over, suppliers, and where approximately structured, offers the ability for the customer to add or remove suppliers