IT organizations are becoming increasingly less reliant on a single IT services provider for service delivery, and are instead becoming heterogeneous environments with multiple service providers supporting components of service delivery—sometimes even co-owning SLAs. As an emerging key mission of IT, stronger governance of outsourced suppliers calls for new skills and new structures. The governance function must be able to optimize productivity of the overall supplier community by balancing the right amount of competition with incentives for collaboration. Done right, the supplier governance program should not only lead to strong supplier performance, but should also foster evergreen innovation and continual improvement from the supplier community.
WGroup advises clients from designing supplier governance team roles and responsibilities to formulating end-to-end service level targets. We have developed many best practices in single and multi-supplier management, and we believe that a disciplined approach to governing the supplier community can provide tremendous benefits, including better alignment with business strategy; greater ROI transparency; SLA performance that actually meets end-user expectations, not just contractual obligations; and continuous productivity improvements. In short, WGroup’s framework for outsourcing supplier governance lays the foundation for true service integration.