Technology Solutions

IT Infrastructure Selective outsourcing is a targeted Sourcing strategy that relies upon sending very specific functions and work off-premises while keeping other functions on-premises. Off-premises work can be performed either Offshore or Onshore.

There are many reasons organizations pursue a IT selective outsourcing strategy, including cost management, and the ability to access skill sets not possessed by staff members. Done properly, selective outsourcing can create a competitive differentiation by allowing an organization to take advantage of the knowled.ge and services offered by a third- party Service provider.

Selective outsourcing may also be referred to as Right sourcing or Smart Sourcing

IT Selective outsourcing involves outsourcing only part of an activity and performing the rest of the activity in-house. IT Selective outsourcing is generally more successful than total outsourcing for two main reasons.

• First, companies that outsource an entire activity tend to be constrained in their ability to control the supplier. This means that companies that outsource an entire activity no longer have a sufficient level of expertise in-house to control or manage their supplier.

• Second, when companies perform a part of the activity in-house, they have access to the operational knowledge and information required to design effective reporting systems. Hence, it is far more difficult for the supplier to behave opportunistically.