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chnology or research capabilities)
On the other hand, buyers select the multi-vendor process when:
· Services in scope are well-defined within the marketplace
· The focus is on achieving the lowest price over broader measures of value
· Multiple solutions based on differing service provider strengths need to be evaluated due to insufficient ability to perform rigorous internal analysis of options
· No dominant preexisting relationship guides the selection
· Corporate guidelines, governmental policies, or culture dictate multi-vendor approach
· Change management and implementation challenges are minor
· The organization is highly skeptical of any sole source approach, thereby slowing up decisions and undermining the credibility of the process.
One survey revealed that existing relationships and a desire for a speedy process are the two largest factors influencing a company to consider a sole source approach - together accounting for almost half of the decisions to consider a sole source approach.
Interestingly for outsourcing service providers, buyers disclosed that a service provider approaching them with an attractive proposal was the least likely reason to consider a sole source approach. Given the high switching costs of outsourcing arrangements, building upon existing relationships can increase the success of a sole source approach, but that alone does not ensure success.
The key is for the buyer to take responsibilit
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