Abstract:

Organizations have used numerous sourcing strategies to lower IT costs and improve IT service levels. However, a number of these sourcing strategies have failed to deliver on their expected outcomes. Multisourcing has been advanced as a form of sourcing which addresses the deficiencies of other failed strategies. From the Telecommunication case, we found that the benefits of multisourcing IT infrastructure stem from an ability to lower IT costs, improve IT service levels and enabling access to specialist vendors for flexible capability. The costs and risks of IT multisourcing were addressed as the ongoing management of vendors and the underlying importance of a service management layer in organizations.