Service integration will become imperative as multi-sourcing and confederation bring new players, more automation, and more discrete solutions to the sourcing market. Sourcing models are shifting from strategic and selective sourcing to multi-sourcing and confederation, with functions being split across multiple internal and external providers. This will require integrating services from various towers and providers. Labor arbitrage will decrease in importance while automation, software, platforms and scalability increase in significance for sourcing models and deals.

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ISG’s Prediction: The Future of Sourcing
As Multi-Sourcing and Confederation bring new players, more automation, and more
discrete solutions, Service Integration becomes imperative.
Internal Shared Services / Captives
Function
Function
Function
Function
Function
All Towers
OR
 Infrastructure
 ADM
 BPO Function(s)
Tower
Tower
Tower
Tower
Importance
of Labor Arbitrage
Importance
of Software, Platforms,
Labor Automation, & Scalability
Function
Social Media
Collaboration
Mobility BYOD
Analytics & Big Data
Cloud
Computing & Storage
Service Integration
Strategic & Selective Sourcing Multi-Sourcing Confederation
MARKET 5 – 10 YEARS AGO LAST 5 YEARS NEXT 3 TO 5 YEARS