The Adidas group, a large sportswear company worldwide headquartered in Germany, incorporate an IT multi-sourcing strategy. This case demonstrates the design and implementation of this strategy. The primary tier-1 supplier for the company was a large Indian outsourcing firm, which had been working from last 10 years for Adidas. In order to potentially utilize its sourcing arrangements, Adidas adds further two tier-2 supplier to mitigate the risks and to increase the productivity.
The management of this particular strategy encountered various challenges. The Chief Information Officer (CIO) is evaluating various alternatives to select the most appropriate one to lead multi-sourcing strategy towards success that includes the restructuring of IT team, building a captive center, and improving the workforce expertise.
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