Page 174 - ITIL® Foundation 3.15

Sourcing Options
Service Design is the lifecycle stage where sourcing decisions are made. If a company or organization is unable to deliver a complete product without outside (human) resources, they have options to get those resources.
Sourcing Options include:
• In-sourcing: using only internal resources.
• Outsourcing: using all external resources.
• Co-Sourcing: using a mixture of both internal and external resources. The external participating organization usually has no interest in your success, but only provides the resources on a fixed fee or hourly basis...Think of this the same as using a temp service to cover for a vacationing receptionist.
• Multi-sourcing or Partnership: acquiring resources from a partner organization where that organization has an interest (often financial) in your organizations success.
• Business Process Outsourcing: the outsourcing of an entire business process (payroll, all of HR).
• Application Service Provision: ASP is the outsourcing of a specific application or set of applications. The provider delivers access to an application for your organization to use, but has no interest or activity involved in performing the business process that the application supports. (salesforce.com or google docs).
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Knowledge Process Outsourcing: According to ITIL, the oldest type of outsourcing. This is allowing some other organization to do your research and deliver to you a suggested solution, or plan to accomplish some business objective. (Gartner, Forrester, Meta research)
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