Single Provider vs. Multiple Providers

Can a single IT provider tackle all the challenges a business client may face, or do they need multiple providers to go?
Is it realistic to have only one SAAS provider as a large corporation, covering every-everything? I don't think so, unfortunately.

Since the digital sector differs from the traditional production line, let's imagine a more realistic scenario in which one provider specialises in addressing one specific case from start to finish.


🤷🏻‍♀️ Single Provider vs. Multiple Providers

The main difference between single and multiple service providers is the level of commitment from the buyer.
In the first case, the buyer pledges to use one service from one supplier. On the second one, the buyer spreads the demand across many suppliers that collectively provide a unique, holistic solution.

✅ Single-provider pros
• They cultivate a deeper and better relationship since they collaborate on more touching points.
• The relationship can be transformed into a partnership, aligning goals and roadmaps, long-term benefits, and scalability plans.
• Monogamous relationships can bring lower costs, simpler integration, and compatibility.
• Faster troubleshooting as the provider is responsible for the infrastructure and the applications.
• The operations have a simple hands-off life since there is no interest in exploring new providers.

🚫 Single provider cons
• Full accountability falls under one provider, leaving the client vulnerable both functionally and financially.
• Zero backup plan as the business client depends entirely on a single entity.
• Limited opportunity for innovation and exploration.
• Long-term partnerships may lock in the relationship and shifting away will be difficult due to integration complexes or contractual obligations.

✅ Multiple provider pros
• Less reliance on a single service provides a safe environment.
• Business clients can be more flexible, creating personalised solutions.
• Fewer bottlenecks as the buyer mix'n'match the services per their unique demands choosing the best of each.
• Encourage healthy competition by gently pushing all companies to evolve.

🚫Multiple provider cons
• Complex Information sharing between providers.
• Lack of compatibility and interest in collaboration between providers.
• Higher cost per service.
• Challenges in quality control and keeping a regular standard.
• Each provider is responsible for themselves so the buyer needs a service desk to make the collaboration happen.
• Troubleshooting becomes complex and hard to keep balance, with providers through the hot potato to others.


Let's not open the topic about the same business having the same provider with different licenses per department, because they work in silos.


Have you ever found a similar case? Are there any points you want to add? Please let me know!
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