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Vendor Sourcing and Management: Implementing Good Governance Through a Strategic Partnerships Office

This IDC study highlights exemplary outsourcing practices that can be replicated by complex organizations with significant outsourcing arrangements. Many organizations find it difficult to effectively govern one or more complex outsourcing deals to deliver value and reduce risks. CIOs and Chief Procurement Officers will find this study useful as it provides a model and suggestions for an enterprisewide capability to improve the governance and management of outsourcing. This IDC study is focused on the Strategic Partnerships Office (SPO) in the Province of British Columbia. SPO creates an effective governance structure for achieving value for money from the $7 billion outsourcing portfolio that it oversees. This study focuses on outsourcing services, vendor and sourcing management, and work source transformation."The complexities of managing multiple vendors across many lines of business can lead to poor performance or outright outsourcing failure," says Ron Babin, adjunct advisor with IDC's IT Executive Program (IEP)."Those organizations that implement a governance office to oversee and coordinate enterprise outsourcing projects will gain the benefits of more reliable delivery of services and fewer failed or disappointing outsourcing projects."

IDC Opinion
In This Study
Situation Overview
Implement a Consistent Deal Life-Cycle Framework Throughout the Enterprise
Recruit, Hire, and Develop Outsourcing Professionals
Hire Subject Matter Experts When Needed
Consistently Manage Institutional Outsourcing Knowledge
Objectively Measure, Compare, and Report for Continuous Improvement
Summary of Practices
Future Outlook
Essential Guidance
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