Traditional outsourcing models have become obsolete in various situations. Our clients are confronted with rigid service providers strictly adhering to (contractual) agreements and agreed KPIs, resulting in a long time-to-market, lack of flexibility and high costs. At the same time, the risk of vendor lock-in is lurking due to a lack of in-house (tacit) know-how and expertise. These are exemplary reasons why organizations opt to source ‘Agile teams’ from service providers. It can be an attractive and successful alternative that mitigates key drawbacks of traditional outsourcing models and staff augmentation, but not without challenges. This article consists of two parts (separate documents). The first part provides insights into the relevance of sourcing Agile teams, the implications for the sourcing strategy, and the challenges it poses to the sourcing lifecycle. The second part provides insights into how to successfully source and manage Agile teams.

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