Sourcing Monthly April 2019 – May 2019
Conclusion: This month, a number of failures due to external vendor systems performing essential functions have been prominent. Disruption caused by these types of outsourced solution failures become disproportionate when they facilitate critical tasks conducted by consumers. Similarly, reactions can be disproportionate when tasks are deeply intertwined with others, such as government agencies requiring submissions of consumer information or reports to set schedules. These types of failures highlight the fragility of systems and the need for sturdy response measures in case of disruption – responses which must extend beyond technical and local issues, but also cater to practical matters. For instance, an acknowledgement from certain government agencies that consumers depend on vendors to fulfil regulatory requirements, and allowances from agencies when failures interfere with customers meeting their responsibilities to these agencies. Vendors require different layers of protection and responses. This includes dealing with externals and their associated issues that can increase difficulties of failures if not identified and factored into vendor response measures.