You can't do it alone.
That's the lesson businesses and governments are learning as they seek to modernize their information technology assets for the 21st century.
Outsourcing has become a way of life for enterprises wanting to remain on the cutting edge of IT. From applications to infrastructure, many organizations have conceded the need to seek out the knowledge and expertise of external IT suppliers.
But while some organizations desire a single-source solution for their IT needs, a growing number of businesses and public sector agencies are engaging a host of IT providers.
As these multisourcing approaches become more prevalent, HP Enterprise Services is building a reputation as the trusted ally most capable of bringing focus, productivity and cost-effectiveness to what can be an otherwise chaotic outsourcing environment.
Drive Down Costs, Promote Best Services
Using a multisourcing model, enterprises hope to promote competition among vendors, driving down costs and finding best-of-breed services in the process. Organizations also hope to minimize the risks involved with major IT projects. The thinking is: Should any single vendor fail to perform, the whole undertaking won't necessarily be endangered.
While there are benefits to a multisourcing approach, the complexity of such an arrangement is amplified. Managing multiple outsourcing contracts can be particularly difficult. Potential savings generated through multisourcing can easily slip between the cracks.
Perhaps most importantly, the task of overseeing multiple vendors can become a major distraction, drawing time and resources away from the client's primary mission or core business.
To cope with these difficulties, enterprises are seeking a proven IT services provider with the industry knowledge and experience to oversee their multiple IT initiatives and the other vendors responsible for accomplishing that work.
“With customers on the hunt for cost and operational efficiencies, interest in multisourced, multivendor arrangements – where one vendor acts as a service or operational integrator – is gaining momentum slowly but surely,” said John Madden, an IT industry analyst and research director, IT services, for Ovum.
“Customers, particularly global clients, believe a service integrator can reduce the overall complexity of managing multiple IT service suppliers, and take some of the pressure off (and some of the cost out) of their internal in-house IT teams. HP now has standard service delivery and management capabilities in place that make the IT services company well-positioned to take advantage of this service integrator trend during the next few years.”
HP As the Integrator
With more than 45 years in the IT outsourcing arena and a wealth of knowledge spanning all major industries, HP Enterprise Services is ideally suited to fill the role of prime or operational integrator within large multisourcing arrangements.
In this role, the prime integrator manages suppliers on behalf of the client and holds responsibility for integrating workflows, processes and technologies among the other suppliers – all with an enterprise view to bring total business value to a client's IT investments.
HP provides clients with a unified governance framework to manage their suppliers, their interactions and accountabilities. Regardless of how the IT services are delivered, a governance framework helps the enterprise integrate its multiple vendors, better manage outcomes and assess effectiveness.
One of the largest government agencies in Europe and one of the world's largest automobile manufacturers are among the IT clients currently calling upon HP in an integrator capacity. HP Enterprise Services' prowess in that role was affirmed in March 2008 when a major multinational oil company selected the company to serve as an integrator among three service providers sharing more than $4 billion in IT business.
Industry analysts expect to see more of this kind of work for HP in the future.
“As clients are challenged with the complexities in managing multi-vendor environments, TBR believes that HP Enterprise Services' experience in operating large, multitower outsourcing deals and its detailed knowledge and understanding of customers' operational environments position the vendor well in delivering multivendor service management capabilities,” said Lindy Hanson, Senior Analyst for Technology Business Research.
Read about Multisupplier Governance