The more the merrier?

In an effort to save money, fill skills gaps, and decrease durations on projects, more and more organizations are turning to multisourcing, enlisting the help of numerous service providers. This article discusses how organizations can control potential multisourcing chaos with comprehensive governance. It identifies some of the risks that are involved with this strategy including change management, poor communication, and delays in delivery. It also explains how service providers who have their own project management methodologies and approaches are another complication. It then reports how detailed service and operating level agreements help define boundaries. In addition, the article explains how project managers can effectively mitigate the risk of vendor in-fighting and create an environment where team members understand that their individual priority is to the project. The article examines key performance indicators and their role in risk reduction. Accompanying the article are three sidebars: The first one examines connecting global suppliers; the second one discusses implementing a robust reporting system in offices in Europe, North America, and Asia; the third sidebar overviews hierarchical types.
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