Can Hybrid Sourcing Constructs Define the New Global Sourcing Paradigm?

Hybrid sourcing construct refers to a combined effort by an enterprise and a service provider to deliver services. The most commonly available constructs include Joint Venture (JV), Build Operate Transfer (BOT), and Virtual GIC. As the market undergoes disruption due to increasing protectionism and emergence of new skills such as digital, enterprises are collaborating with service providers to build hybrid entities and develop new capabilities. Service providers are willing to enter these constructs to retain existing clients and acquire new ones.

This viewpoint deals with the drivers behind the resurgence of hybrid sourcing constructs. It also evaluates different sourcing constructs on the three key deciding factors, namely speed-to-market, extent of control, and financial considerations. In addition, the viewpoint explores various customizations being done to the traditional hybrid sourcing constructs and key pressure points for both enterprises and service providers.

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