Balancing In-House Strengths with Expert Support: A Strategic Approach to Sourcing

Keeping up with fast tech innovation and changing regulations can be challenging—especially now skilled talent is scarce. Have you considered making sourcing part of your business strategy? By distinguishing between core and context activities and finding the right partner(s) to work with, a strategic sourcing approach lets you concentrate efforts where they count most.  

In this article, we will look at how Xebia helps modern IT organizations build a sourcing strategy that works. Which tasks should stay in-house, and where can a partner drive more value? Striking the right balance is key.  

Every Company is a Software Company  

Once a back-office function, IT has become the driving force behind business success across all industries. Consider companies like Ford, which evolved from a car manufacturer to a software company that builds automobiles. Similarly, FedEx, Xerox, and DreamWorks have all transformed their core businesses, using software to maintain a competitive edge.  

• FedEx now operates as a technology-powered logistics provider.  
• Xerox offers advanced document management solutions.  
• DreamWorks has become a technology powerhouse in animation.  

And what about banks? Once traditional financial institutions focused on managing money, they are now technology-driven organizations using software to provide secure, personalized, and innovative digital financial services.  

What unites these companies is that:  

1. Without IT, their core business would be outdated, non-competitive, or even non-existent. 
2. By investing in software as a core capability, they’re well-equipped to operate faster, better, and cheaper, giving them a sharp competitive edge. 

“Today, it’s nearly impossible to imagine a company where technology isn’t central,” says René van Osnabrugge, Global Consultancy Director at Xebia. “Most companies are now building their own software, which must run on a secure, compliant platform. This platform needs to integrate seamlessly with existing systems and third-party environments and be proactively managed to stay current. While the cloud can help address some of these challenges, without adapting your way of working, developing internal expertise, or working with the right partner, your cloud will simply become your new data center.”  

Faster, Better, Cheaper: Modernizing for Competitive Advantage  

Is your software outdated, bug-prone, or are you struggling to meet customer expectations? You're not alone. Many companies face these challenges, and modernization is about addressing them head-on. Van Osnabrugge adds, “Change is never the goal for our clients. Every investment is focused on getting to value faster, better, or cheaper.”  

Modernization will focus on, for example, simplifying complex processes or adopting platforms like Azure, which replace expensive, inflexible data center setups. However, the transformation doesn't stop there. In many software-driven businesses, IT remains siloed, creating bottlenecks, communication delays, and inefficiencies. “We break down these silos,” says Van Osnabrugge. “If your core product is A, everyone involved in A needs to be part of a cross-functional team that covers everything from design and build to delivery and support.” 

Becoming a successful software company is not just a matter of updating technology—it’s about rethinking your software, adapting to a new organizational structure, and managing a new cloud environment that many companies aren’t prepared for.  

Your team excels at what they do today, but adopting new technology requires a fresh skill set. So, where to invest? This is where “core” and “context” come in. Which parts of your business are unique, and which are more generic? Which activities require your in-house expertise, and which can be more efficiently managed by a partner? Let's discover!   

Core vs. Context 

Core activities differentiate you in the market and create fantastic customer value. Van Osnabrugge, "When defining your core activities, ask yourself, what makes me stand out and my customers happy? If you are an online retailer, will a fantastic HR app boost customer satisfaction? No, and neither will Azure, for that matter. They are both essential, but they are not your USP. Your shopping platform is.”   

Conversely, context activities are all the basic functions supporting your core but not providing a competitive edge. Van Osnabrugge, “What counts as context varies. For many companies, IT is a context function – a vital but not unique foundation. However, for a company like Netflix, it’s a differentiator they heavily depend on to gain a competitive edge.”   

Looking at the above two activities, can you imagine the business value of (re)shifting your focus from your context activities to your core activities?  

Prioritizing Core Activities  

Strategic sourcing can greatly impact your business. Rather than stretching internal resources too thin, it helps you focus on core areas and use specialized partners for context activities. By strategically sourcing, you can make 'faster, better, and cheaper' a reality. Consider it an opportunity to reshape how your business operates—one that requires focus, careful resource allocation, and partnerships to make every investment count.  

"We're not suggesting that you should always outsource your context activities—far from that," says Van Osnabrugge. "However, it's important to identify smart wins. Your team can only focus on one thing at a time, so ensure that focus is directed where it will have the greatest impact. But in doing so, how do you ensure all other activities evolve at the same pace? That's where companies like Xebia come in—offering expert consultancy and low-threshold, high-quality managed services designed to support your goals." 

Wesley van der Maas, Sales Manager at Xebia, adds, "Your context is our core. So, whether you are looking to do it yourself (after on-topic Xebia Academy training), team up with consultants, or have Xebia Managed Services take care of your IT, our tailored solutions allow you to focus on your core."  

3 Approaches to Strategic Sourcing with Xebia  

At Xebia, we understand that no two organizations are the same, and sourcing strategies should reflect that. That’s why we offer three flexible options: do it yourself, do it with us, or have us do it for you. Opt for one or combine as you see fit.  

1. Do It Yourself 

Why In-House Knowledge Matters  
Given you have the time, the funds, and the people, boosting your company's knowledge with in-depth training is an investment you will never regret. Having in-house expertise means your teams can troubleshoot, iterate, and improve systems without always relying on external support. This autonomy is especially important for DevOps teams in fast-paced environments where staying ahead of the curve is critical to maintaining a competitive edge.   

Xebia Academy as a Solution  
Looking for a training institution that offers it all can be quite a challenge. That's why, 20 years ago, Xebia started building its own network of top-notch trainers—experts in their field who loved to share their knowledge. Today, Xebia Academy celebrates a global presence, over 600 trainers, 1.3M+ professionals trained, and a 9.5 customer score. We are here to bridge your skills gap and give you the learning experience of a lifetime with our courses in Agile, Cloud, Data and AI, DevOps, Leadership, Low Code, Microsoft, Product Management, Scrum, Security, and Software Development.  

1. Do It Together with Consultants

The Value of Collaborating with Experts  
If you’re looking to take the next step in modernization, but lack the resources or expertise in-house, collaborating with consultants might be the solution for you. Consultants bring a wealth of experience, offering an external perspective grounded in deep industry knowledge. Our people are at the forefront of technological innovation, understanding common challenges and bringing solutions that work. This approach enables you to upskill your teams while benefiting from the expertise of specialists.  

Partnering with Xebia   
Working with consultants can be a great way to accelerate progress for core initiatives where internal teams are critical. Xebia’s consultants work alongside your teams to bridge knowledge gaps, drive complex projects, and share best practices in real-time. Whether it’s migrating to the cloud, implementing DevOps, or optimizing your development processes, working closely with Xebia’s consultants guarantees the right support at every stage.

1. Do It for You

When Managed Services Make Sense  
Outsourcing routine, resource-intensive tasks, or areas outside your expertise can help your organization focus on its core activities. High-performing companies recognize this advantage. According to a July 2024 survey by the Upwork Research Institute (1), which included 1,500 executives from Germany, India, and the US across industries like software, healthcare, and manufacturing, top-performing businesses are 61% more likely to utilize managed services to address complex challenges." 

Xebia Managed Services   
For over a decade, we have helped countless companies modernize, migrate to the cloud, and adopt 'everything as a service.' While their new environments flourished, many eventually returned to us. Not because of issues, but after experiencing the value of an IT partner — and struggling with the global talent shortage — they wanted us to manage their platform, allowing them to focus on their core business. 

“Rather than charging our customers for endless consultancy hours,” Van der Maas says, “we identified an industry need and launched Xebia Managed Services. True to our innovative spirit, Xebia Managed Services is anything but typical. We don’t take over, we empower. Your context is our core, and we are happy to deliver it under an SLA to ensure continuous changes are made, and the foundation of your success remains evergreen, secure, and compliant.” 

Xebia Managed Services provides end-to-end support for essential IT operations, including security, compliance, and cost management. But we also focus on maintenance, growth, and innovation. Our model doesn’t replace your IT team but rather extends it, taking on context tasks so your team can prioritize core initiatives. 

Choosing the Right Sourcing Model  

The choice between in-house training, consulting support, or managed services depends on your organization's specific needs, the complexity of the project, the skills available within your team, and the capacity of your people to take on the task. A well-rounded sourcing strategy is flexible, allowing you to adjust your approach at any time.   

For example, to maximize the potential of their new Azure Landing Zone — developed in close collaboration with our consultants — Enza Zaden partnered with Xebia for ongoing support and continuous improvement. With Xebia Managed Services, they can focus on what they do best, knowing their IT platform is in expert hands. Wigo4it also partnered with Xebia’s consultants to support its shift from an on-prem software partner to a cloud-based SaaS provider. Through training and ongoing support from Xebia, they keep their technology and skills sharp, staying ahead as an industry pioneer. 

Conclusion  

Time and money are extremely valuable resources that can only be spent once, so understanding how to allocate them best is extremely important. A well-balanced sourcing strategy helps you keep your core activities close while outsourcing tasks that support, but not define, your business. Xebia's three-tiered approach—training, consulting, and managed services—ensures you have the right expertise and type of support at every stage, helping you achieve your strategic goals and maintain a competitive edge.