IT delivery is evolving from a traditional on-premises model to a hybrid model combining cloud and traditional IT. Organizations are using a variety of sourcing approaches for this new dynamic, from full outsourcing to multisourcing to brokerage. For multisourcing scenarios, having an effective governance model for managing diverse providers and subcontractors is a critical success factor.

The co-existence of multiple providers increases management complexity, requiring additional overhead to integrate the different processes, tools and methods inherent to each supplier, and to manage service gaps. The diversity of third parties involved in the IT delivery supply chain also creates greater risk for knowledge management and protection. Multi-provider environments also are a reflection of the growth in cloud adoption.

To address these opportunities and challenges, some organizations are revisiting their sourcing strategies and investigating alternative approaches in an effort to realize important benefits, including:

  • Lower costs
  • Choice and flexibility to meet changing demands
  • Continuous improvement of services
  • Cost transparency of services On the other hand, they must also efficiently manage the challenges of such hybrid IT governance models

This paper describes a comprehensive approach for Multi-Source Integration/Service Integration and Management (MSI/SIAM) in the cloud age, and offers seven keys to MSI/SIAM success:

  1. Have a clear strategy and view of the “as-is” and desired “to-be” states. Define a roadmap that plots the transformation
  2. Address governance from the very beginning, clearly delineating accountabilities for all parties, including in-house IT
  3. Adopt tooling to automate and integrate services and support key processes such as charge-back, monitoring, metering and security
  4. Ensure clear lines of responsibility while fostering collaboration and openness
  5. Create a culture of transparency and continuous improvement from the very beginning by setting expectations
  6. Look for innovation opportunities within the services offered, the wider market and the MSI/SIAM function itself
  7. Automate key processes such as billing and chargeback to reduce overhead costs