Project Management Institute

Multiple choice

Multi-sourcing--the practice of using multiple contractors and suppliers--could initially prove more costly than, for example, working with one vendor who offers significant discounts in return for the opportunity to simultaneously deliver several services. But in the long run, it could help companies reduce their project risks: By not putting all of their eggs in one basket, they are not relying on the performance of a single vendor to successfully realize their project. This article examines the benefits and the concerns of multi-sourcing, benefits such as engaging the best talent, concerns such as adding administrative burden. It also discusses two multi-sourcing strategies and identifies the pros and the cons of individual sourcing decisions.
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