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Sourcing Model Selection

A3

Choose appropriate sourcing model(s) to support delivery of IT services (for example, internal or third-party providers, single or multiple providers).

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Sourcing Model Selection at each level of maturity.

1Initial
  • Practice
    Rely on the best endeavours of available personnel.
2Basic
  • Practice
    Make Sourcing model decisions on a case-by-case basis.
    Outcome
    The IT function can achieve cost, delivery, and resource management goals for a specific Sourcing project contract.
    Metric
    % of Sourcing decisions that are reviewed.
3Intermediate
  • Practice
    Take the following criteria into account when selecting the Sourcing model: business criticality, intellectual property (IP), core competencies, governance, capability of the provider market, risk assessment associated with physical location, quality and cost aspects, transferability and end-user interaction of service, multi-provider management, and effective evaluation criteria.
    Outcome
    An appropriate Sourcing model can be selected on the basis of more objective criteria.
    Metrics
    • # of criteria considered when selecting a Sourcing model.
    • % of Sourcing decisions based on the appropriate Sourcing model.
4Advanced
  • Practice
    Make all Sourcing decisions with reference to an established Sourcing model.
    Outcome
    Sourcing decisions are aligned with the IT function's IT strategy.
    Metric
    % of Sourcing decisions that adhere to the appropriate Sourcing model.
5Optimized
  • Practice
    Review and update the Sourcing model consistently.
    Outcome
    Previous Sourcing decisions and changing IT and business strategy can be learnt from.
    Metric
    % of actions completed arising from reviews of the Sourcing model.