Title

MANAGING AND MONITORING IT APPLICATION DEVELOPMENT AND MAINTENANCE SUPPLIERS IN A MULTISOURCING CONTEXT

Abstract

Many international corporations are now adopting multisourcing approaches to information technology (IT). Multisourcing is described as the blending of services from multiple company-internal – such as captive offshore centers – and company-external suppliers, and is primarily concerned with the relationship between the client organization and the suppliers. To date, aspects relating to performance measurement and governance have scarcely been covered in the IT outsourcing literature and established IT frameworks such as COBIT or ITIL provide only imprecise approaches for monitoring suppliers. With this research study, we intend to sharpen the existing understanding of how corporations manage and monitor suppliers in a multisourcing environment. We provide insights into a real-life example of monitoring IT application development and maintenance (ADM) suppliers and suggest a framework with corresponding key performance indicators (KPIs). This article aims to contribute to the existing body of knowledge in three ways. First, it describes established frameworks that are applied when monitoring suppliers; second, it presents insights into a real-life example of monitoring multiple IT ADM suppliers across various business entities in a leading financial services provider; and third, it proposes a framework and corresponding IT ADM KPIs. This research study is also expected to help corporations facing similar challenges by providing a best practice framework with definite KPIs.

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