Multisourcing

Definition

Multisourcing is known as the technique of outsourcing to several service providers rather than a single or small group of vendors or service providers. 

This method of outsourcing is appropriate for businesses with a sudden surge in demand for their products or services. When current vendors cannot meet all of the demand, the company looks for other vendors who can perform their additional tasks. 

Companies also outsource to multiple vendors to reduce the risks and hazards to data security and operational stability. Furthermore, multisourcing encourages competition and collaboration among service providers to give the highest service quality to their shared client.