Why Buyers Are Getting Better Results with the Single Sourcing Model

Does polygamy or monogamy make a husband or wife happier? Do outsourcing buyers with multiple service providers create better outcomes than buyers with fewer relationships?

Since the beginning of free markets for goods and services, buyers have benefited from competition. However, many complex products and services increase the importance to the customer of having strategic relationships. In most cases, outsourcing is a complex service, but buyers frequently establish a small herd of service providers with overlapping responsibilities and no clear “vendor strategy” except to maximize leverage and performance through champion-challenger relationship models.

In this RapidInsight™, we present data that shows that increasing the number of service providers doesn’t drive better or worse business outcomes, but does create management complexity. Then we present a decision model buyers can use to make decisions on the number of service providers they need. Finally, we describe how focusing on the Four Sourcing Industry Challenges from our Blueprint can create a stable single source relationship.