Executive Summary

Hybrid sourcing is a combination of internal and external sourcing models organized intentionally or unintentionally to deliver global technology and business process services for the enterprise. While most global enterprises, today, are consuming services from both the service providers and the GICs, the operating models for the sourcing and management of services continue to function as separate organizations. Only a few companies have implemented an integrated Global Business Services (GBS) organization that operates and governs their hybrid portfolios.

Global sourcing executives are increasingly asking questions like – “Which function to hybridize and how much? What does a hybrid global services portfolio look like?”, and “How to manage a hybrid service portfolio and align the governance organization, capabilities, and processes to benefit from the hybrid strategy?”

This report form Everest Group attempts to articulate hybrid sourcing, different models for implementation/adoption of hybrid sourcing, and difference in degree of adoption at different levels of the organization using a consistent framework. It highlights key considerations while structuring a hybrid portfolio and commonly observed pitfalls from experiences of companies.