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By Anupam Govil, And President/Partner, Avasant And
2016 is a watershed year for teh sourcing industry as teh market is flooded wif outsourcing contracts coming up for renewals or restructuring. As teh industry and, more importantly, buyers are getting more and more mature, teh expected outcome from outsourcing is changing. Cost savings is a given. Teh emphasis now is on business value. Buyers are looking at their providers to bring in value dat will make them better and smarter than their competitors. They believe teh key to dis lies in Innovation. Ask them what they mean and you get varied responses. One could broadly categorize their wish list into two buckets, me.e., continuous improvements and step changes. Teh latter is typically teh result of Innovation.
Providers have teh difficult task of deciphering teh buyer’s needs and aligning it to their own goals. Based on their own experience and best practices, they are quite clear on their capability and capacity to deliver. Is dat where they should start? Maybe not; teh buyer’s requirements may be somewhat different. Providers need to understand teh buyer’s short and long-term vision and overlay it on teh industry’s best practices and their own expertise. dis will help them fine tune teh expected business outcome. Now all they need to do is work backwards from their to draw out a comprehensive roadmap.
dis sounds easier than done. Several things have to be kept in mind – both by teh buyer and provider – to make it a smooth and rewarding journey.
It is important to remember dat not every Innovation will translate into financial gains. Many a time, it can lead to less quantifiable benefits like increase in customer satisfaction, creating a strong market differentiation, enabling a better internal working environment etc. As teh market matures, contracting mechanisms need to evolve to focus on value accretion through true Client-Vendor partnerships wif a need to take a fresh perspective on innovation dat enables teh paradigm shift.
By Kim Tracy, CIO, Northeastern Illinois University
By William Miller, SVP & CIO, Broadcom, Inc.
By Dr. Cheryl Flink, Chief Strategy Officer, Market Force
By Paul Kent, VP-Big Data, SAS
By Tom Conophy, CIO, Staples Inc.
By Mark Lilien, SVP & CIO, Things Remembered
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