Insight

Outsourcing: From complexity comes value

Contracting for multiple delivery models is complex, but worth the effort to realize the flexibility and value that you can achieve.

Brian C. Lewis

Brian C. Lewis

Managing Director Advisory, Procurement & Outsourcing, KPMG US

+1 303-459-7903

Continually adapt to the demands of the business with Micro-Sourcing

We know from experience that the needs of the business will change and that the business will always demand more (efficiency) for less money (effectiveness). After all, isn’t that why outsourcing started and why it continues to be a key digital transformation lever across all functions and industries? Micro-Sourcing is a modern hybrid outsourcing strategy which contracts for multiple delivery models, allowing you to continually adapt to the demands of the business regardless of how the market changes. Granted, there is complexity in contracting for multiple delivery models and then allowing product owners to choose which delivery model to use. However, that complexity is required to enjoy flexibility and realize value. Micro-Sourcing manages the complexity by predefining the delivery models, the “micro,” within third-party contracts, the “sourcing,” which allows you to manage risk, deliver performance at the right price, and allow the product owner to select the right model at the right time. The next innovation in the market will possibly require integration of all of your services into your outsourcing strategy. With Micro-Sourcing, you can have confidence that your outsourcing delivery models are able to adapt to disruption and market innovations.

KPMG recommends you read the blog series again starting at Blog 1 Outsourcing: Insanity or opportunity?. In addition, we welcome the opportunity to assist you with your Micro-Sourcing journey in order to receive macrobenefits from your outsourcing strategy and deliver more value to the business.

If you would like to read previous blogs in this series, visit Outsourcing (kpmg.us)