Article Review -IT Multisourcing Strategy
How adidas Realized Benefits from a Contrary IT Multisourcing Strategy
Instructions for Article Review 3
Table of Contents Learning objectives of Article Review 3 ……………………………………………………………………………. 2
Tips for reading this article ………………………………………………………………………………………………. 2
What is not required …………………………………………………………………………………………………….. 2
Formatting instructions: How to format your review essay…………………………………………………… 3
The structure of your review essay ……………………………………………………………………………………. 4
1. Introduction …………………………………………………………………………………………………………….. 4
2. Summary …………………………………………………………………………………………………………………. 4
3. Practical implications ……………………………………………………………………………………………….. 4
3.1. IT outsourcing decision ………………………………………………………………………………………. 4
3.2. Managing IT multi-sourcing using vendor overlaps ……………………………………………….. 4
4. Conclusion ………………………………………………………………………………………………………………. 5
References ………………………………………………………………………………………………………………….. 6
CIDM 6310 by Dr. Eunyoung Moon 2 | P a g e
Learning objectives of Article Review 3 In the late 1990s, the typical outsourcing contract involved a single vendor. The practices of
outsourcing has evolved (Bapna, Barua, Mani, & Mehra, 2010), and client organizations
increasingly engage multi-sourcing (Wiener & Saunders, 2014).
IT multi-sourcing refers to “the delegation of IT and IT-enabled services to multiple vendors,
who must work collaboratively to deliver services to a client organization” (Bapna et al., 2010:
p.786). In general, multi-sourcing is expected to help client organizations mitigate the risks of
single sourcing. Traditionally, IT multi-sourcing employs the modular structure, assigning
exclusive work areas (“module”) to corresponding vendors. Such high vendor modularity limits
the level of ongoing competition among vendors. Thus, modular multi-sourcing results in vendor
lock-in and limiting organizational flexibility.
Our textbook (Pearlson, Saunders, & Galletta, 2016) Chapter 10 introduces a new type of IT
multi-sourcing strategy, which seeks to overcome the constraints of modular multi-sourcing,
taking an example of Adidas (see p.216). This week we will further explore this new type of IT
multi-sourcing strategy which embraces vendor overlaps, using the practice-based article by
Aubert, Saunders, Wiener, Denk, & Wolfermann (2016). This article review will help you
develop further understanding of IT multi-sourcing and broaden your perspective on sourcing.
The learning objectives of Article Review 3:
Explain the primary drivers and risks of insourcing and outsourcing.
Understand IT multi-sourcing models.
Explain the benefits and risks of IT multi-sourcing.
Tips for reading this article Start with making your notes on basic terminologies such as customers (clients), vendors
(providers), insourcing, outsourcing, single sourcing, multi-sourcing, looking at my notes and the
textbook.
My notes (#16 – #19), in particular, provide the summary of
o IT outsourcing relationship taxonomy (#16)
o the cost-benefit tradeoff between single sourcing vs. multi-sourcing (#17, #18)
o modular multi-sourcing vs. vendor-overlapping multi-sourcing (#19)
What is not required This is NOT a research methodology course. This means that this article review assignment does
NOT require you spend significant space on research methodologies the authors used.
CIDM 6310 by Dr. Eunyoung Moon 3 | P a g e
Formatting instructions: How to format your review essay 1. Provide at least 1” margins, at least 12-point font, and at least 1.15-line spacing.
2. Number all the pages.
3. Length: The maximum length of the essay is 4 pages, excluding references.
4. Use headings.
5. Place references at the end of your review essay.
CIDM 6310 by Dr. Eunyoung Moon 4 | P a g e
The structure of your review essay Your review essay should have the following four sections. Use headings for all sections and
sub-sections. Below I provide the body of text you should write in each section.
1. Introduction A good introduction encourages readers to read your essay with great interest and prepares them
to understand it better. You want to establish common ground, a shared understanding between
reader and you about the topic you will write in the following sections. Then, you will concisely
introduce what the focused topic is, and how your essay is organized. This section is usually a
single paragraph. Do NOT place the summary in the introduction and conclusion sections. If you
do so, the level of achievement will be lowered.
2. Summary Assume that you are giving someone who has never read the article enough detail so that they
could have a summary of the article. Your summary should NOT be a mere copy of paragraph or
the bulk of quotes from the article. You should provide a concise, comprehensive summary in
your own words. In this section, please show me that you really read and comprehended the
article at a level where you can cogently cover the most important parts succinctly.
3. Practical implications This section should have two distinct sub-sections, using Level 2 headings as follows.
3.1. IT outsourcing decision
In the first sub-section, you should identify a particular IT product or service you think would be
better outsourced in your organization (the client), particularly with a multi-sourcing strategy
which embraces vendor overlaps. Then, you should explain why outsourcing is a better option
than insourcing in the context of your organization, taking the client manager’s view.
3.2. Managing IT multi-sourcing using vendor overlaps
In the second section, as a client manager, you should discuss the benefit and the risk of IT
multi-sourcing using vendor overlaps.
1) In the first paragraph, you should discuss the benefit of using IT multi-sourcing using
vendor overlaps, AND what you would do to maximize that benefit.
2) In the next paragraph, you should discuss the risk of IT multi-sourcing using vendor
overlaps AND how you would mitigate that risk, as a client manager.
Practical implications should demonstrate your understanding of insourcing, outsourcing,
modular sourcing, and vendor-overlapping multi-sourcing.
CIDM 6310 by Dr. Eunyoung Moon 5 | P a g e
4. Conclusion You wrap up your review. State overall contributions of the article, theoretically and practically.
You should also write what more you would like to know. This section is usually a single
paragraph.
CIDM 6310 by Dr. Eunyoung Moon 6 | P a g e
References Aubert, B., Saunders, C., Wiener, M., Denk, R., & Wolfermann, T. (2016). How adidas Realized
Benefits from a Contrary IT Multisourcing Strategy. MIS Quarterly Executive, 15(3).
Bapna, R., Barua, A., Mani, D., & Mehra, A. (2010). Research Commentary—Cooperation,
Coordination, and Governance in Multisourcing: An Agenda for Analytical and
Empirical Research. Information Systems Research, 21(4), 785–795.
https://doi.org/10.1287/isre.1100.0328
Pearlson, K., Saunders, C., & Galletta, D. (2016). Managing and Using Information Systems: A
Strategic Approach, 6th Edition (6th ed.).
Wiener, M., & Saunders, C. (2014). Forced coopetition in IT multi-sourcing. The Journal of
Strategic Information Systems, 23(3), 210–225. https://doi.org/10.1016/j.jsis.2014.08.001
Learning objectives of Article Review 3
Tips for reading this article
What is not required
Formatting instructions: How to format your review essay
The structure of your review essay
1. Introduction
2. Summary
3. Practical implications
3.1. IT outsourcing decision
3.2. Managing IT multi-sourcing using vendor overlaps
4. Conclusion
References
