Outsourcing becomes more strategic

By Staff -- Modern Materials Handling, 2/1/2001

There is an important shift occurring in outsourcing these days, says Gartner Group, Inc., Stamford, Conn. Enterprises are becoming more dependent on their long-term relationships with external service providers. Furthermore, information technology (IT) is taking on a greater role in the daily management of outsourcing relationships.

As a result, Gartner has replaced the word outsourcing with strategic sourcing. The research group defines strategic sourcing as the dynamic delivery of both internal and external business and information technology resources and services to ensure achievement of business objectives.

Gartner offers four observations on why it's necessary to shift to a more strategic perspective of one's sourcing decisions.

• Information exploitation and inter-enterprise operability replace efficiency and effectiveness as the key metrics for IT management.

• Strategy sourcing demands evaluation of delivery models and value objectives to ensure IT efficiency and business outcomes. There are four strategic sourcing scenarios-management, access, optimization, and creation.

• The role of the IT department is transitioning to being a broker, not supplier, of services.

• Successful sourcing relationships fuse technology expertise and business competencies to deliver innovation.