21st Century Solutions for Sourcing Services

This white paper is a collaborative effort between the University of Tennessee (UT), the Sourcing Interest Group (SIG), the Center for Outsourcing Research and Education (CORE), the International Association for Contracts and Commercial Management (IACCM) and industry and academic leaders that are passionate about improving how companies’ approach procuring and working with outsourced service providers.

Today, outsourcing has grown into a formidable industry. The 110,000-member International Association for Outsourcing Professionals estimates the size of the outsourcing industry at more $6 trillion globally.1 Outsourcing has risen across all major types of services and today many organizations -— such as the United States Air Force — spend more than 50 percent of its budget on services. This is not uncommon.

Outsourcing is deep rooted in many industries such as logistics and transportation. Other industries such as IT and Human Resources have risen in the last decade.

The organizations and authors have teamed on this white paper to drive clarity around outsourcing business models and to help procurement, outsourcing professionals and commercial managers understand and use the appropriate sourcing business model to maximize their desired outcomes.