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Sourcing is a significant element in the business strategy of most major organizations, public and private. Increasingly, non-core activities that do not directly contribute to an organization's competitive positioning are outsourced to others who can deliver them more effectively.
Effective use of IT sourcing can deliver many benefits. It can position IT as a leader of business change by providing access to new technologies and thinking. It can also deliver sustainable reductions and increased control over the IT cost base. However, achieving these benefits is not easy - many companies fail to fully realize these benefits as they struggle to:
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determine the right mix of internal and external services |
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establish a realistic business case, balancing the desire to maximize benefits and transfer risk while retaining control and responsibility |
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construct a commercially attractive arrangement adaptable to changing business conditions |
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address the additional complexity involved in offshore sourcing; balancing cost savings and quality improvements against the risks involved in working with partners from different countries and cultures |
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measure the benefits available from establishing internal shared service centers against the effort required to establish and run such organizations |
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ensure that the anticipated benefits are delivered throughout the entire lifecycle of the arrangement |
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