Deriving a Research Agenda for the Management of Multisourcing Relationships Based on a Literature Review

There has been considerable development in Information Technology (IT) outsourcing during the last two decades. Nowadays, practitioner-related as well as scholarly literature have identified multisourcing as an emerging key strategy. Multisourcing is described as the blending of services from multiple internal and external vendors. Especially in the case of multisourcing the management of relationships is complex. For a certain field of research it is important to have an overview of the existing literature and a common understanding of basic terms. In this article we identify and analyze the body of knowledge in the area of managing multisourcing relationships. We hence conduct a structured literature review based upon an established literature review framework. It can be observed that the current literature lacks depth in terms of management of multisourcing relationships and that only a few articles cover the aspects of multisourcing in detail. Particularly regarding performance management, governance and knowledge management of multisourcing relationships we propose further research. We subsequently deduce a detailed research agenda for future research options

How Formal Governance Affects Multisourcing Success: A Multi-level Perspective

Multisourcing has become a common sourcing model in recent outsourcing practice. Yet, the extant and relevant IS literature has so far offered limited insight into how to stipulate both individual (i.e., individual vendor) and joint (the entire vendor network) performance while ensuring governance efficiency. Our study set about addressing this gap by examining how these three dimensions of multisourcing success can be achieved through formal governance. Specifically, we considered bilateral formal control, collective formal control and conflict arbitration (among vendors) as key formal governance elements. Results from a pan-European survey of client firms pursuing multisourcing projects show that bilateral formal control sets the stage to achieve both individual and joint performance, while conflict arbitration strengthens individual performance, and collective formal control strengthens joint performance. Governance efficiency is improved when both collective formal control and conflict arbitration are high. We also found that conflict arbitration strengthens the positive effect of collective formal control on both individual and joint performance. Our findings highlight the importance of governing inter-vendor relationships in multisourcing arrangements as opposed to relying solely on bilateral governance. Our study extends the limited literature on IS multisourcing, and assists managers in considering the strategies they wish to pursue when choosing appropriate governance mechanisms

Towards Multi-Sourcing Maturity: A Service Integration Capability Model

When outsourcing IT services, many enterprises today resort to multi-sourcing. It allows them to reduce costs and assemble a best-of-breed service portfolio. However, this usually also increases complexity. Despite the economic importance of multi-sourcing, though, there is no systematic understanding of the capabilities required to successfully integrate interdependent services and to manage multi-sourcing. This paper develops a capability model for service integration in a grounded coding approach based on literature and expert interviews. The model identifies six key capabilities and 18 sub-capabilities. We evaluate its applicability and validity via an empirical survey and two in-depth case studies. In addition, provide various insights into the implementation of service integration functions. Our contribution should provide orientation for companies how to direct their transformation efforts. It outlines an agenda for future research and builds a solid foundation for maturity models to improve multi-sourcing readiness – ultimately leading to more effective multi-sourcing solutions

IT Multisourcing Management : A Qualitative Study from the Vendor's Perspective

IT multisourcing is an outsourcing method that combines services of various different vendors in a single technology focused undertaking. This study investigates the benefits and disadvantages that an IT multisourcing setting presents to the vendor from a management perspective. As vendors are responding to client needs, studying their experiences can present valuable information for managing IT multisourcing projects for client companies and their decision makers. The study aims to gather as much information of multisourcing from the vendors’ perspective, but due to the main focus in previously conducted research articles being on the client’s side, there is a gap in research to be filled. This study aims to fill the gap by interviewing eight IT industry experts with experience from IT outsourcing and multisourcing projects. As multisourcing describes a situation where one client contracts two or more independent vendors on a single IT project or undertaking, it is also a situation where the different tasks assigned to vendors have some impact on each other. This is true in most cases, even though the vendors may operate independently from each other. It has been shown that multisourcing is only efficient when vendors are communicating with each other. This study also focuses on examining the communication and cooperation activities of the various operators in a multisourcing setting. Through examination of a selection of most ocmmonly used models in IT multisourcing, the thesis aims to expand the knowledge on what the benefits and disadvantages of IT multisourcing are as well as what the management challenges in these settings are with an emphasis on the vendor's view point

An Information Processing View on Joint Vendor Performance in Multi-Sourcing: The Role of the Guardian

This paper examines joint vendor performance in multi-sourcing arrangements. Using an Information Processing View, we argue that managing interdependencies between multiple vendors imposes substantial information processing (IP) requirements on clients. To achieve high joint performance, clients therefore need to possess sufficient IP capacity. We examine how three sources of IP capacity, two internal (i.e., the client's inter-vendor governance and the client's architectural knowledge) and one external (i.e., the guardian vendor), work together in realizing joint performance. Our results show that formal governance and architectural knowledge contribute to joint performance. The guardian vendor contributes to joint performance in settings where the client deploys strong governance but lacks architectural knowledge. This suggests that, contrary to common views in the literature, guardian vendors should not be understood as mediators (or single points of contact) who relieve clients from governance efforts. Instead, guardian vendors are more fruitfully understood as architects, who complement the client's governance efforts by compensating for knowledge gaps. Put simply, client firms should consider using a guardian vendor to compensate for weak architectural knowledge while still maintaining strong formal and informal governance of all vendors

Single-sourcing vs. multisourcing : an empirical analysis of large information technology outsourcing arrangements

As the information technology (IT) services landscape matures, clients are increasingly adopting multisourcing arrangements that involve multiple vendors. Although a large body of information systems (IS) literature addresses issues of whether to outsource (to a single vendor), what types of contracts to use, and how to achieve optimal relational governance, little is known about the antecedents and consequents of the single versus multisourcing decision. Moreover, while conceptual and analytical models of single-sourcing versus multisourcing have been developed, there is no empirical IS research using a large-scale data set with rigorous econometric analysis that examines the antecedents and consequents of multisourcing in the IT context. This paper fills this void, using the transaction cost economic lens and a data set of 49,057 large IT outsourcing arrangements that spans multiple industries and dates back 25 years. We find that there is a curvilinear relationship between number of IT services in an IT outsourcing arrangement and the likelihood of multisourcing. This relationship increases as the number of IT services increases to up to five services and then decreases. For managers who plan to multisource IT outsourcing arrangements, this research provides guidance to minimize exchange hazards through a better understanding of the relationship between sourcing choice, client IT outsourcing capabilities, the competitiveness of the vendor landscape, and the number of IT services in an IT outsourcing arrangement. We provide empirical evidence that the choice between single-sourcing and multisourcing is material to the performance of outsourcing contracts as an incorrect sourcing choice is likely to result in negative contract outcomes

A Capability Framework for IT Service Integration and Management in Multi-Sourcing

Multi-sourcing, the blending of services from multiple external and internal providers, has gradually become the standard mode of operation in IT outsourcing. It allows companies to assemble a best-of-breed provider portfolio and to reduce costs. A key difference between single- and multi-sourcing is the potential interdependence between services delivered by multiple providers. To deliver a seamless service to the client’s business units, various services often need to be integrated and managed as an end-to-end service. This activity is denoted as service integration and management. Many clients, however, are having difficulties implementing and performing this important task. Therefore, we explore which IT capabilities organizations need to build for performing service integration and management. \ \ After deriving challenges from literature, we perform a multi-stage qualitative study based on a series of focus group sessions and expert interviews. In a qualitative content analysis, we develop a framework of IT capabilities which enable successful service integration and management by addressing the key challenges. We, thus, aim to contribute to more effective multi-sourcing solutions in practice and to lay the groundwork for future research in this important field

Information Systems Offshoring—A Literature Review and Analysis

IS offshoring has become one of the most discussed phenomena in IS research and practice. Particularly due to its rapid evolvement, current research on IS offshoring lacks a consolidated view on existing results. The article at hand seeks to meet this need by systematically reviewing and analyzing prior academic literature on IS offshoring. Based on a review of top-ranked IS and management journals as well as IS conference proceedings, we compile an exhaustive bibliography of ninety-six publications solely focusing on IS offshoring from a (project) management perspective. To adequately address the immense diversity of these publications, a multi-perspective research framework consisting of three perspectives, namely, research focus, research approach, and reference theory, is introduced and forms the basis for our literature analysis. The analysis results confirm the appropriateness of our framework and reveal directions for future research along the framework perspectives: Most importantly, in an effort to increase the significance and the trustworthiness of their results, researchers should apply a more theory-driven approach and provide a better description of their research context. Moreover, future research needs to pay particular attention to the pre-implementation stages of an IS offshoring initiative as well as the special nature of nearshoring and captive offshoring. Across all project stages, researchers should not only concentrate on the client point of view but incorporate multiple points of view