Sourcing Strategy

Companies without a sourcing strategy risk ending up in a bad marriage with an unfulfilling partner. We help our clients define why, how and which IT services to source globally, while finding partners that will provide business value for years to come

 
 
 

Are your business pressured by competent, aggressive and cheaper competitors, who are using global sourcing extensively?

Is there a need to reduce your IT cost base significantly?

 

Are your IT projects not delivering solutions at a sufficient quality?

Would you like to utilize a more effective global development approach at a higher maturity level to be competitive in your market?

Does new innovative technology services need to be developed faster and at less cost than today?

 

....Then global sourcing is a definite possiblity

A sourcing strategy needs to be executed with respect to the company and its employees. Our approach is based on global best practices, and follows ISO37500 guidelines for outsourcing. We have added a our experience for what is good and what is not so effective in real life situations, especially for Scandinavian companies. Many of the exploratory tasks are included to allow management to establish a case for change towards employees, board, the public, suppliers and partners. Not all will be needed in actual situations. We have provided an overview of our approach. In real life, we will work with our clients to adapt the full scope model to what is really necessary.    

Validate strategic sourcing assumptions

The objective is to align top-management expectations to expected sourcing benefits with business and functional strategies and ensure that sourcing objectives and goals are specific enough to be able to judge and direct the sourcing strategy. Also we will understand if the business functions eligible for sourcing have been identified.

This will typically be performed in a workshop format.

 
 

Identify services eligible for sourcing 

The objective is to gather information of the internal services and the organisations eligible for sourcing activities, and establish recommendations for most relevant services to source.

This will typically be performed as interviews

 
 

Define sourcing strategy and scenarios for sourcing

Through a facilitated workshop we help management to decide on the strategic forces for sourcing, the critical uncertainties, expected outcomes for sourcing, the limitations, and the urgencies and burning platforms that drives the need for sourcing.

 
 
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Define sourcing strategy and scenarios for sourcing

We will help management to build a business case for each of the selected sourcing scenarios, to demonstrate the economical impact short and long term for the relevant sourcing activities.

 
 
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Evaluate and decide on sourcing options

We will evaluate and decide whether or not to proceed with the proposed sourcing strategy. The decision will be facilitated through a workshop, where business case and information gathered in previous steps will be reviewed and discussed.

 
 

Additional elements of a solid sourcing strategy are

Source: ISO37500, Guidance on outsourcing, first edition 2016-11-01

Source: ISO37500, Guidance on outsourcing, first edition 2016-11-01

  • Assessing organizational impact of sourcing, and establish and execute a case for change
  • Evaluate the organisations maturity for effectively use sourcing
  • Establish a risk profile and mitigations for high risks
  • Decide on a benefits realization approach, to ensure that expected benefits are identified and tracked
  • Setting up the sourcing projects, that will execute the decided sourcing options

After the sourcing strategy is in place or reviewed, the actual sourcing activities can take place, as modelled in ISO37500.

Mio Management have experience in all aspects of the sourcing lifecycle, from Initiation and selection, over transition and transformation, through delivering value and vendor management, to exit and replacement of sourcing vendors.