In the past few years, the IT industry has seen more and more organisations offshoring/outsourcing their IT service needs.

There has been a constant dramatic evolution of technology. Things like Business Analytics are no longer a luxury; they rather have become a necessity for the business, which requires a specific set of skills to be developed.

Finding the right partners for your varied technology needs and bringing them together to help you run your business hassle free is vital. It especially takes the front seat in a scenario where you might have one vendor for your ERP system, another vendor for your CRM system, third vendor for your Business Analytics & Custom Applications, fourth vendor for your Mobility needs and so on.

Though theoretically outsourcing to multiple vendors should not result in additional complexities for the outsourcer, in reality, it indeed causes some hurdles or delays.

Following are some of the most common issues (generally associated with multi-vendor outsourcing) faced by the outsourcer that can be completely avoided if the outsource/offshore software development company has a wider technology spectrum:

  • Bringing all the vendors on to the same page – Any vendor would not be able to deliver you with a good piece of software / product unless they understand your business, systems, requirements & objectives properly. And if you are required to outsource your requirements to multiple vendors, you have to explain the same to all your vendors one after another. Sounds tiring… right??
  • Vendor interdependence – Because businesses are so integrated these days, many times it results in one vendor finishing its part and waiting for the other vendor to finish their, before they move to the next stage, which results in delays in project. Another issue that frequently arises is the communication gap/miscommunication (especially in cross cultural/country outsourcing) that many of us have experienced at some point of time during offshoring/outsourcing.
  • Vendor management – Anyone with an experience in outsourcing to multiple vendors knows that managing vendors is a mammoth task that requires stupendous amount of strategies. One may have to dedicate resource and proportionate amount of time for effective multi-vendor management.
  • Things may go wrong – There is a real possibility that things may go wrong in multi-vendor engagement. And when they do, it is really difficult to pinpoint at a single vendor to hold them accountable.

It wouldn’t be wrong to say that most of us romanticise the idea of having a single vendor capable of entertaining all our technology needs. But practically, finding a vendor who could serve as a one stop shop for all technology needs might be difficult in the beginning. But you should not let that dissuade you from finding the vendor who would provide you with all (or most of) the technology solutions under one roof.

Many of us have years old good relationship with existing vendor(s). In such scenarios, it might be wiser to go to your existing vendor and ask if they could handle your development requirements on that particular technology. Most of the time the vendor would agree to do so, even if they don’t have the technology at that time. There is a higher possibility that they would adopt/learn the technology just for the good relationship they have with you and they would like to keep it that way.

Last but not least, when/if something goes wrong in the single vendor engagement; you get a proverbial single throat to choke…Winkey Icon

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