Global IT Multisourcing: Objectives, Challenges and Requirements in Multinational Insurance Companies

In recent times, information technology (IT) multisourcing has emerged as a key strategy in the field of IT outsourcing. Most of the current scholarly and practitioner-related literature acknowledges the importance of multisourcing, but linear extensions of the dyadic client-vendor relationship are insufficient to capture its nuances. Multinational financial services providers (such as banks and insurance companies) have been pioneers in the field of IT outsourcing. However, there is a lack of experience-based research about the implementation of global IT multisourcing. In this article we present findings from a cross-case study investigating the implementation of global IT multisourcing in four leading insurance companies. First, the article presents the objectives of the insurers in pursuing global IT multisourcing. Second, the research reveals challenges the companies are facing in implementing global IT multisourcing. Finally, requirements for implementing IT multisourcing are derived. The insights of these real-life examples extend existing literature on IT outsourcing and provide helpful orientation for organizations that are implementing global IT multisourcing.