Question: summarize this into paragraph, Clearly doing it in house was not effective, which is why Microsoft looked into other sourcing options. They did evaluate transactional
summarize this into paragraph, "Clearly doing it in house was not effective, which is why Microsoft looked into other sourcing options. They did evaluate transactional based sourcing (which could include Mult sourcing), but quickly realized there would be no incentive for the provider to drive improvements or efficiencies. In addition, some activities were really not transaction-based. Managed services may drive initial cost savings, but the provider as the manager would have more control of what activities they wanted to prioritize and MicroSoft realized they really did not have a good cost model for the multiple tasks needed to be own. With this amount of uncertainty, they anticipated high bids from providers to absorb that unknown risk. Microsoft rejected other sourcing options for several reasons. Multisourcing, while offering flexibility and risk diversification, can introduce complexity in managing multiple vendors and potential integration challenges. Instead, Microsoft preferred building deeper relationships with fewer partners to ensure better alignment and focus. Managed services, which usually involve outsourcing specific IT functions, were not aligned with Microsoft's broader goal of strategic transformation beyond mere operational efficiency. Additionally, handling operations in-house could restrict access to external expertise and innovation. Therefore, Microsoft chose to leverage the
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