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Strategic Sourcing for Digital Transformation

By Ben Grinnell

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This paper discusses the challenges and strategies for organizations undergoing digital transformations while relying on outsourced IT functions. The author argues that while insourcing IT capabilities has been a successful pattern in many enterprise transformations, it is not always practical for organizations heavily dependent on outsourcing contracts.

The paper highlights the problems that arise in typical outsourcing scenarios, such as lack of in-house capabilities, misaligned incentives, and difficulty in driving collaboration among suppliers. It also acknowledges the challenges global systems integrators face in supporting their clients’ DevOps journeys.

  • Format PDF
  • Pages 11
  • Publication Date May 2023

Features

  • Alignment

    Achieve leadership alignment across the organization around a clear sourcing strategy.

  • Collaboration

    Foster trust and collaboration among supply chain partners to drive success.

  • Talent

    Grow internal capabilities while attracting and retaining experienced talent.

  • Value

    Transform procurement to focus on delivering measurable value, not just cost reduction.

About the Resource

This paper discusses the challenges and strategies for organizations undergoing digital transformations while relying on outsourced IT functions. The author argues that while insourcing IT capabilities has been a successful pattern in many enterprise transformations, it is not always practical for organizations heavily dependent on outsourcing contracts.

The paper highlights the problems that arise in typical outsourcing scenarios, such as lack of in-house capabilities, misaligned incentives, and difficulty in driving collaboration among suppliers. It also acknowledges the challenges global systems integrators face in supporting their clients’ DevOps journeys.

The author suggests that organizations need to carefully plan their sourcing strategies, considering factors such as growing internal capabilities, aligning with HR and Finance, and creating compelling propositions to attract and retain talent. They also discuss various procurement models, such as capability centers of excellence and managed services for cross-functional teams, along with their respective challenges.

The paper concludes by summarizing seven keys to success for organizations navigating this transition, including being intentional, gaining leadership alignment, transforming procurement, growing talent, and fostering collaboration among partners.

Ben Grinnell
Ben Grinnell

Ben Grinnell

Evangelist for modern IT practices that help organisations use their technology to learn & act fast, safely and at scale

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