Understanding task inter-dependence and co-ordination efforts in multi-sourcing: the suppliers' perspective

The last decade has witnessed a significant growth in the outsourcing of information technologies and business processes. Of a particular trend within the outsourcing industry is the shift from the client firm contracting a single supplier to utilizing multiple suppliers, which is also known as multi-sourcing. Multi-sourcing may potentially offer numerous advantages to client firms, however, it might present some challenges to suppliers. In particular, multi-sourcing could create coordination challenges, as there are inter-dependencies between the outsourced tasks to numerous suppliers. While the current outsourcing literature acknowledges the existence of inter-dependencies, little is known about the efforts required for coordinating the work between suppliers and how these coordination efforts are made to manage task inter-dependence. Three case studies at Pactera (case one) and TCS (cases two and three) serve as the empirical base to investigate the inter-dependence between outsourced tasks and suppliers coordination efforts. This research offers theoretical contributions to both coordination studies and the outsourcing body of knowledge.