The Hidden Costs And Complexity Of Managing Multiple ADM Suppliers

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Executive Summary

As Application Development and Maintenance (ADM) outsourcing services hove grown rapidly based on the power of the labor arbitrage value proposition, many organizations outsourcing ADM utilized multiple third-party suppliers. Motivations for using multiple suppliers are far ranging; common examples are variations in suppliers' capabilities, localized decision-making across an enterprise, and a desire to retain competitive tension. The portfolio of suppliers serving a company is often complex and creates considerable challenges to manage and optimize. Consequently, leading companies rationalized the number of suppliers in their ADM portfolio and attained financial benefits plus a less complex sourcing environment.

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