IT Performance Management

Chapter 8: Sourcing IT and Managing a Mixed IT Portfolio

8.1 Introduction

Many IT services offerings are available in the external market place, and there are many more to come. Yet, the IT services industry is still young if not at the break of dawn . Lots of new offerings are emerging from the IT industry to help you improve your business value.

How do we know when to jump on which bandwagon ? This is a question of IT strategy implementation; with a very widespread impact. Strategic sourcing is the term that is usually used for these types of choices.

We define sourcing as: the activity of obtaining IT services, competencies or assets from an external service provider . The word external is essential here. Internal service providers provide IT services but even though they can be in a separate organization we do not consider the internal IT service provisioning to be sourced.

Related to this are:

  • Outsourcing : the activity of moving IT services (including the resources to provide these IT services) and/or competencies and/or assets from an internal service provider to an external service provider .

  • Out-tasking : the activity of moving IT services (excluding the resources to provide these IT services) from an internal service provider to an external service provider . In other words out-tasking is also a sourcing activity.

This means that there is a world of difference between sourcing and outsourcing. Implementing a sourcing strategy usually includes an outsourcing activity, but managing sourcing is something completely different from managing outsourcing. Over the last 10 to 15 years a lot of...

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