The Future of Technology Sourcing

In a world of rapid change and technology development, we believe that deepening relationships to drive desired outcomes is the most effective way to achieve results.  This means championing the human as well as the management aspects of partnerships and dealing with the hidden, as well as the hygiene factors;

The continuing technology revolution and rapid pace of change in fact requires more, not less focus and investment in flexible governance and supporting commercial arrangements that are fit for purpose in today’s world, and on into the future.   In our Future of Technology Sourcing seminar this week we covered the impact to two key hygiene factors in sourcing from technology change;

A good sourcing process.  Faster and more effective ways of sourcing today’s technology are needed, traditional RFP processes are too long and cumbersome for sourcing digital and cloud solutions, however there is still a need (that is often neglected) for robust procurement strongly linked to outcomes and effectively market tested. Quantum Plus have been using their Agile Sourcing to radically reduce sourcing times while bringing suppliers much closer to the client during the process.  Using collaborative working we’ve been able to cut typical sourcing programmes down from 20 weeks to just 6 weeks whilst implementing robust procurement processes and strong market testing.

Great relationship management. Supplier Relationship Management also needs to change to adapt as single-sourced Managed Service contracts break down into to more complex, multi-sourced environments.  Key competencies in SRM in today’s technology-led world are;

• Clear accountabilities
• End-to-end processes (owner agnostic)
• Effective and strong governance
• Accountability for service integration end-to-end across suppliers, owning core processes
• Ability to cope with the increased demand due to more vendors
• Ability to deal with increased frequency of service transition, supplier induction and exit management
• Rapid (but safe) decision making
• Focus on output in value terms
• Funding flexibility
• Highly efficient operating model
• Flexi model that can adapt to changes as they arrive

Key technologies impacting the sourcing market require changing sourcing approaches to more output based, multi-sourced and flexible models;

RPA and AI

The full benefit of automation is yet to be fully realised. It is an emerging technology and is yet to reach mainstream provision – our speaker Andrew Burgess highlighted a lack of automation-first approaches and the need to make some key changes in the sourcing space to unlock the benefit of automation technology;

• Automation capability will become a core part of the service provider evaluation process
• There will be a detaching of automation from IT and a move into the business
• Cost reduction will not be the only sourcing driver, reducing risk or improving quality are equally valuable benefits
• It will be a customer driven revolution responding to increasing demand for immediate response
• It will drive reshoring

Other view points

“Developing the trust of the citizen in the digital world” The Corsham Institute

“Democratising AI through voice enablement” Sopra Steria

“Innovation is impacting the journey to cloud” HCL

“New approaches in developing human loyalty” Capgemini

The Future of Technology Sourcing conclusions

Sourcing technology needs to shape up to be fit for purpose in today’s ever-changing world.  Traditional models are lacking in their ability to get the best out of technology and have the following limitations;

• Predetermined term, scope, service
• Detailed SLA, service management
• A restricted “nod” to innovation + continuous improvement

Future sourcing will be much improved if the following approaches are taken;

• Desired outcome led
• TOM + OCM enabled
• Agile sourcing approaches
• Automation first strategy
• Performance based on Net Promoter Score
• Collaboration
• Flexibility + Transparency