Mention multi-vendor outsourcing relationships these days, and the J.P. Morgan/Pinnacle alliance bubbles up in every conversation. That alliance, said Alan Gonchar, president, COMPASS America, Inc., has become the model for a growing movement toward teaming.
Since the late 1980′s, outsourcing vendors have relied on subcontractors to perform part of the work required in outsourcing relationships. Although customers often assumed that the functions subcontracted were non-critical services, a number of trade press articles a few years ago revealed that the outsourced functions included some that any client would view as potentially at the heart of the relationship.
While the glamorous multi-vendor deals are the ones garnering most of the attention in outsourcing, the real growth in that area will come in the less sophisticated arrangements. That’s the opinion of Bill Martorelli, an industry analyst formerly with Giga Information Group.
By the year 2002, over 50 percent of everything that is spent externally on IT services will be expended around e-business activities. That’s part of the e-business explosion predicted by Doug Elix, general manager for IBM Global Services.
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