The transition from first-generation, monolithic sourcing deals (Outsourcing 1.0) to a combination of multi-sourcing, offshoring and insourcing (Outsourcing 2.0) gave businesses more flexibility in securing the systems and services they wanted. It also saw them realise the benefits of competition among a wider network of suppliers.

Yet these new, more complex sourcing arrangements transferred significant integration risk back to client organisations. Today, complexity continues to increase – and there’s a new factor in play too. With technology-related services becoming key to helping businesses compete for and retain customers, the components underpinning these services must be expertly joined up to deliver a seamless and exceptional customer experience.

Outsourcing 3.0 – The Integration Age – has arrived and, to thrive in the new era, businesses have no option but to become brilliant at integration. Building the necessary integration capability will depend on three principles: standardisation, knowledge and collaboration.

How the Integration Age arrived

There are four key trends that herald the arrival of The Integration Age:

How to become brilliant at integration

To address complexity, some organisations are starting to source key systems on an end-to-end basis. This transfer’s integration risk at the system level back to the contractor and, by aligning service provision with end-to-end processes, delivers better outcomes for users. But this isn’t a perfect solution.

To eliminate concentration risk and maintain competition in the portfolio, organisations need to avoid depending on one supplier. They also need to retain enough insight into end-to-end systems to manage the integration and delivery of related services.

A strong integration capability is still required and this should be based on three key foundations:

As technology-related services play an increasingly important role in differentiating services and products and winning customers, businesses need their information services to deliver, and that has to be the priority – even above costs. Outsourcing is moving on. Welcome to the Integration Age.

Outsourcing 3.0: Welcome To The Integration Age | BCW

Outsourcing 3.0: Welcome To The Integration Age