Driving value from multi-vendor sourcing relationships on large-scale transformations

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Managing complexity and risk during your multi-vendor transformation

A number of leading companies are in the midst of digital transformation. Across these initiatives, senior executive leaders sometimes look for best-of-breed solutions. They may also view putting all of their eggs in one basket with a single professional services partner as too risky. Thus, multi-vendor sourcing is a very common approach. While this concept can work, it introduces new forms of complexity and risk in a transformation. PwC explores this approach and provides perspective on how to improve the chances of success.

Top 10 risks of multi-vendor sourcing

  1. Poorly defined governance 
  2. Non-standard processes and outputs 
  3. Competing goals and grossly restrictive agreements 
  4. Cross-team dependencies, resource availabilities and reporting time lags in obtaining a fully integrated view of critical path activities 
  5. Informal knowledge transfer and communication protocols 
  6. Weak internal controls and security 
  7. Varying operating models, project management and governance capabilities 
  8. Informal or weak vendor performance monitoring processes 
  9. Complex data governance, especially for data processors 
  10. Complexities of a multi-cloud environment

Manage risk and achieve your strategic business objectives

PwC’s Transformation Assurance team helps companies focus on the key business outcomes of their transformation in order to identify the risks that matter most throughout the project lifecycle. In addition to traditional project management, our teams specialize in Agile, DevOps, Cloud (including SAP S/4), analytics and revenue recognition. 

As we’ve done with many clients, PwC can work with you throughout your transformational journey so that you can reap the intended benefits.

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Kara Finley

Kara Finley

Principal, Digital Risk Solutions, PwC US

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