Procurement Talent Content

Sourcing Managed Services: Not Consulting, Not Outsourcing [PRO]

The line between outsourcing and sourcing managed services can be somewhat blurry because the services provider does assume responsibility for the delivery of a project or outcome tied to a project (but not necessarily the overall charter or management of what the project is tied to). The easiest way to explain this dual-ownership is that under a managed services environment, the internal procurement organization maintains responsibility for sourcing strategy development (make/buy, demand management, specification standardization/rationalization, service level/quality requirements, etc.) and overall category management, including stakeholder engagement and management, supplier development, internal reporting, etc.