In today’s modern IT ecosystem, no company is an island. Reliance on external services—from cloud infrastructure to specialized AI consultancies—has become the rule, not the exception. Within the ITIL Version 5 framework, the Partners and Suppliers dimension is one of the critical pillars for ensuring the organization’s Value System operates in an integrated and efficient way.

For managers and professionals pursuing certification, understanding how to manage these relationships is essential. After all, the quality of your digital product depends directly on the performance of the players behind the scenes in your Value Chain.

In this article, we explore how the new ITIL addresses this dimension and what factors should guide your sourcing strategy.

Read also: The Definitive Guide to ITIL 5

What is the Partners and Suppliers dimension in ITIL Version 5?

The Partners and Suppliers dimension in ITIL Version 5 covers an organization’s relationships with other companies involved in any stage of the product and service lifecycle. This includes everything from the early Discover and Design phases to operations and Continual Improvement.

Unlike purely transactional views, ITIL proposes that these relationships be treated as part of a value network. They are formalized through contracts and agreements, but the primary focus should be value co-creation.

In practice, this means a SaaS (Software as a Service) provider isn’t just a “license seller,” but a partner that sustains the availability of your service for the end customer.

Levels of integration: From contracts to flexible partnerships

Not all organizational relationships are the same. ITIL Version 5 highlights that there is a spectrum of formality and integration:

• Formal contracts: Clear separation of responsibilities and a focus on specific deliverables.
• Flexible partnerships: Parties share objectives and risks, and actively collaborate to achieve desired outcomes.

Choosing one model or the other depends on the strategic importance of the contracted service. For example, for commodity services (like electricity or basic internet), a standard contract is usually enough. But for developing a core AI-based capability, a collaborative partnership is far more effective for your Value System.

Service network complexity and the role of the integrator

Today, organizations operate in complex service networks. A company can simultaneously be a customer of one provider and a provider to another—forming a web of dependencies.

To manage this complexity, ITIL Version 5 emphasizes the use of specialized integration approaches. In many cases, the role of a Service Integrator emerges:

• Internal integrator: An in-house team dedicated to coordinating all suppliers.
• External integrator: A third-party company hired specifically to ensure all Value Chain partners work in harmony.

This coordination is what prevents the classic “finger-pointing” when an incident occurs in a multi-supplier environment.

Strategic factors for using suppliers

Deciding what to keep in-house (insourcing) and what to delegate to third parties (outsourcing) is one of the most important decisions a manager can make. ITIL Version 5 lists crucial factors that influence this strategy:

• Strategic focus: Does the organization prefer to focus on core competencies and outsource support functions?
• Organizational culture: Is there a historical bias toward doing everything internally, or openness to partnerships?
• Resource scarcity: If a specific technical skill (like data science) is rare in the market, partnering may be the only viable option.
• Cost and risk concerns: Is it more economical to buy the service or build it? What’s the risk of becoming overly dependent on a single supplier?
• Demand patterns: For highly seasonal services, external suppliers provide elasticity that a fixed in-house team often can’t match.

How does ITIL Version 5 boost your career?

Mastering the Partners and Suppliers dimension in ITIL Version 5 transforms IT professionals into ecosystem managers. It’s no longer enough to understand code or infrastructure—you need to manage SLAs, contracts, and above all, human and corporate relationships.

Organizations that adopt these practices can reduce operational costs and increase innovation speed, because they know exactly when and how to bring in external support to strengthen their Value Chain.

Want to become an IT Governance specialist and master ITIL Version 5?

At PMG Academy, you’ll find top courses and certifications to elevate your professional level. Learn how to apply these concepts in practice and lead digital transformation in your organization.

Enjoyed this content? Comment below on how your organization manages strategic partners—or share your question about the new ITIL framework!