Desire to Minimize

• Economies of scope

  • Want one vendor to manage multiple functions

• Economies of Scale

  • Leverage expertise and methodologies
  • Reduce need to invest in expensive state-of-the-art technologies
  • Take process-oriented approach

• Management time devoted to one vendor

  • Leverage Expertise
  • Use non-revenue-generating areas to provide multiple methodologies and functions
  • Investment in expensive technologies
  • Emphasize process-oriented approach

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