Insight

Outsourcing: Multiple delivery models

Governance maturity in contract, demand and financial management

Brian C. Lewis

Brian C. Lewis

Director Advisory, Procurement & Outsourcing, KPMG US

+1 303-459-7903

Micro-Sourcing is a modern information technology sourcing strategy which contracts for hybrid delivery models. It establishes a framework which integrates the approaches so that they successfully coexist in your portfolio and can be utilized when appropriate. Product owners select the delivery model that will add the most value to the business at any point in the product lifecycle. Therefore, a flexible decision and governance framework must be established to help product owners consistently select, switch between, and then operate within hybrid delivery models, each optimized for a particular product. KPMG recommends focusing on maturing demand, financial, and performance management governance processes by enabling them with supporting technology. As a product switches between models, the entirety of the product’s ecosystem (e.g., servers, databases, applications) will move to the new delivery model, making the underlying data in the configuration management database of critical importance. As governance processes mature, the Micro-Sourcing decision framework can be augmented to take a data-driven approach to not only selecting a model but also selecting the right alternatives within the model. Reaching this level of governance maturity is critical because product owners will quickly be requesting the ability to operate different product components in different models to optimize budget and value to the business.

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

Coming up next in our Micro-Sourcing Series…Blog 5, we will tackle the question “how does the framework work in a multi-supplier environment?”