A Capability Framework for IT Service Integration and Management in Multi-Sourcing

Abstract

Multi-sourcing, the blending of services from multiple external and internal providers, has gradually become the standard mode of operation in IT outsourcing. It allows companies to assemble a best-of-breed provider portfolio and to reduce costs. A key difference between single- and multi-sourcing is the potential interdependence between services delivered by multiple providers. To deliver a seamless service to the client’s business units, various services often need to be integrated and managed as an end-to-end service. This activity is denoted as service integration and management. Many clients, however, are having difficulties implementing and performing this important task. Therefore, we explore which IT capabilities organizations need to build for performing service integration and management. After deriving challenges from literature, we perform a multi-stage qualitative study based on a series of focus group sessions and expert interviews. In a qualitative content analysis, we develop a framework of IT capabilities which enable successful service integration and management by addressing the key challenges. We, thus, aim to contribute to more effective multi-sourcing solutions in practice and to lay the groundwork for future research in this important field.

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