The Hidden Costs And Complexity Of Managing Multiple ADM Suppliers

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.