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Effective service bundling in outsourcing

Bundled services help businesses to save money, improve performance and manage relationships. Today outsourcing is about strategic collaboration and one of the most important current developments is the move to combine or 'bundle' multiple processes and technologies with a single partner. In the past using a multi-sourcing approach might have delivered cost savings, however, as the estate becomes more complex these savings are quickly negated.

Bundling often occurs if there is a change of agenda, for example, in a recession, resources that were once easily available to a business, may become limited, making it cheaper to outsource and bundle. It also offers organisations flexibility as they can pursue an 'add-on' strategy, gradually bundling services over time, until a time when they decide to opt for a more comprehensive bundling approach.

Organisations with a mature outlook in their IT sourcing strategy and IT management capability are seeing the value in bundling. Not only are they benefiting from the latest innovation, but it is also enabling them to offset or share risk with their vendor, thus improving the security of their IT.

To help you to decide if service bundling is right for your business, here are some questions to consider:

1. How does multi-supplier-sourcing or bundling give you more control?

2. Will using one supplier help minimise risks?

3. Should you transition into bundled outsourcing methods overtime or can it be done in one deal?

4. Should there be some 'tidying up' of an organisations information technology and processes first, or does bundling obviate this need?

5. Is there really a big difference in the costs of management for bundling versus multi-supplier and silo outsourcing?