Is multisourcing the new outsourcing?

6 June 2007
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07 June 2007

Buyers should consider multisourcing if they are outsourcing a variety of functions, rather than using a single provider.

A study by PricewaterhouseCoopers (PwC) found traditional long-term outsourcing deals are less effective when applied to functions such as procurement. Some 50 per cent of firms said they would increase their use of multisourcing - outsourcing different functions to different providers - in future.

PwC said outsourcing had matured to an extent that it was no longer only about cost savings, but also about getting access to new talent and capabilities. Its report said collaboration with suppliers was vital in a process that "no longer simply entails a buyer and a supplier, it needs partners".

The survey of 292 firms worldwide also found that, contrary to recent studies, most firms were still positive about the success of outsourcing and more than 90 per cent would do it again. Some 30 per cent were currently outsourcing their purchasing function.

SMjun2007

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