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Sole Source Procurement (Online)

You may have heard of sole source procurement in traditional outsourcing circles, but did you know it's applicable to online outsourcing as well? Sole source procurement is cutting out all the competition and focusing outsourcing efforts on a single service provider only. It's not an appropriate strategy for outsourcing beginners, but outsourcers who are experienced with selecting and working with a large variety of providers instead.

We say large variety because experienced outsourcers are the ones who've seen it all and heard it all. They know who they can depend on, and they have a list of reliable service providers assembled as teams and/or back up replacements to consult. Online, you can use the same strategy as long as you're aware of its consequences.

The Good and The Bad

Because you don't have to spend time and resources searching for the most appropriate service provider, sole source procurement saves money. That's the good part. It doesn't always mean you'll get the best deal, however. Remember, sole source procurement eliminates the competition. Not your competition, but your service provider's competition. So you could end up paying more than what a service's standard dictates as a result.

Another problem with sole source procurement is that along with competitive costs, it could cut out the best skillset as well, especially from highly talented new-comers. It's not unusual for an unknown, skilled provider to go unnoticed in favor of a tried and tested alternative.

What Are You Comfortable With?

If you're comfortable with these possibilities, sole source procurement may be a viable strategy as long as you believe your selection is adequately skilled and well worth the funds. If not, experiment with providers who meet a different type of criteria (lower costs, faster work completion, tighter code, etc.).