A telecommunications firm that had been outsourcing its critical ADM services to one provider for stability discovered the advantages of flexibility with multi-sourcing.
Despite spending $250 million annually for its ADM organization, a telecommunications firm struggled to respond to change requirements. Performance suffered due to lack of necessary skills and capacity and the absence of competitive tensions in the delivery model. The firm’s management team needed a better, cheaper, faster solution.
Imagining IT Differently
ISG implemented a competitive multi-sourcing model with four main service providers. By bringing back key skills, the plan enabled the client to retain more of its intellectual capital and reduce its risk because it had filled the skills and capacity gaps. By instituting a competitive environment with more thought to spending, ISG’s solution produced dramatic cost savings through selective offshoring.
Future Made Possible
- Finding the right provider for each function improved responsiveness.
- Introducing a competitive environment saved the client money.
- Filling the skills and capacity holes stanched the outflow of intellectual capital.