Maximizing Value in Multisourcing Environments with Streamlined Governance

April, 2024

Multisourcing is a strategy that involves outsourcing different services to multiple vendors. However, around 85% of organizations face significant challenges such as ineffective communication and lack of cross-supplier collaboration while executing multisourcing service integration (MSI) services. Service providers take this narrative forward by implementing a comprehensive set of MSI capabilities such as effective risk mitigation strategies, centralized governance, and consistent service level agreements. Additionally, service providers also leverage generative AI for MSI services to streamline workflows, offer data-driven insights, and accelerate process execution.  

Both demand- and supply-side trends are covered in Avasant’s Multisourcing Service Integration 2023–2024 Market Insights™ and Multisourcing Service Integration 2023–2024 RadarView™, respectively. These reports present a comprehensive study of MSI service providers and closely examine the market leaders, innovators, disruptors, and challengers. They also provide a view into key market trends and developments impacting the MSI space. 

We evaluated 32 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 32 providers, we recognized 21 that brought the most value to the market during the past 12 months. 

The report recognizes service providers in four categories: 

    • Leaders: Accenture, Capgemini, HCLTech, IBM, Infosys, LTIMindtree, and Wipro 
    • Innovators: DXC Technology, Deloitte, Orange Business, TCS, Tech Mahindra, and Unisys 
    • Disruptors: Atos, Birlasoft, CGI, and KPMG 
    • Challengers: Coforge, Fujitsu, Hexaware, and Microland 

Figure 1 below from the full report illustrates these categories: 

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“Unlocking maximum value from MSI services requires a strategic approach that aligns with business objectives,” said Avasant Principal James Lee. “Enterprises need a coherent and cost-efficient MSI strategy that streamlines governance and vendor management across the diverse IT supplier landscape.” 

The reports provide several findings, including the following: 

    • Around 85% of enterprises face challenges related to communication and collaboration while implementing MSI services. These challenges arise from the absence of effective communication in running MSI functions and the lack of cross-supplier collaborations. 
    • Enterprises are utilizing generative AI for MSI services, in the areas of service integration, predictive analytics, incident resolution, process automation, and knowledge management.  
    • Service providers are addressing a variety of MSI use cases through a platform-led approach, focusing on governance, compliance management, process orchestration, configuration management, vendor management, and service level agreements. 
    • MSI workforce has increased by 13% between April 2023–April 2024, as companies are aiming to fulfill talent demand while streamlining and managing a multivendor ecosystem. Cost optimization, complexity of IT environments, and risk management are the key factors driving the demand for talent in MSI services. 

“Generative AI emerges as a powerful ally in enhancing the MSI service delivery,” said Dhanusha Ramakrishnan, lead analyst with Avasant. “Service providers are leveraging generative AI to foster effective service integration and expedite the resolution of IT incidents, resulting in optimized costs and improved business outcomes.” 

The RadarView also features detailed profiles of 21 service providers, along with their solutions, offerings, and experience in assisting enterprises in their MSI processes.

This Research Byte is a brief overview of the Multisourcing Service Integration 2023–2024 Market Insights™ and Multisourcing Service Integration 2023–2024 RadarView™ (click for pricing).