IT Sourcing: What is it and Why does it matter?

Agile
By Hugo Tome
August 21, 2018

In today’s world, fast changing technology and evolving business objectives had made it essential for companies that want to be competitive, to decide what services they can continue supporting internally, and what services to source externally.

All this by defining an IT sourcing strategy that allows them to leverage the benefits of sourcing (either onshore, offshore or nearshore) their processes and activities.

 

What exactly is a Sourcing in IT?

 IT Sourcing is the process of choosing or procuring resources from a 3rd party, outside of the organization.  Companies can choose from three available options to source: onshore (within their own country), nearshore (to a neighboring country or one in the same time zone), or offshore (to a distant country).

 

Why Should Companies define a Sourcing Strategy?

While traditionally sourcing was seen as a way to reduce costs, companies see it now more like an investment designed to enhance capabilities, increase agility and profitability, or gain them a competitive advantage.

Some of the other benefits are:

  • lower costs
  • increased efficiency
  • variable capacity and scalability
  • increased focus on strategy/core competencies
  • access to scarce skills or resources
  • increased flexibility to meet changing business and commercial conditions
  • lower ongoing investment in internal infrastructure
  • access to innovation, intellectual property, and thought leadership

 

Conclusion:

Although in the past, seen only as a way to reduce cost, IT sourcing has become a tool for every business in the ongoing quest for talent and the business dynamics for specific skills, for differentiation and innovation.

Companies need to be clear on their goals and business needs for sourcing, and analyze the pros and cons for onshore, offshore and nearshore outsourcing, in terms of cost, maturity and required skills.

IT convergence can help you define an IT Sourcing Strategy, for more information on our services contact us here.

Written by Hugo Tome

Hugo es Marketing Associate para América Latina en IT Convergence.

Comments