IT needs to move from passive procurement to active service integration

Sourcing, Strategy & Architecture

IT’s ability to acquire and integrate new capabilities has become increasingly important. Cloud-based delivery models increase access to new solutions and the lifecycles of existing solutions become more and more compressed.

3gamma is working with several clients who are replacing systems (of record) less than three years old. For many of our clients, the idea of an IT strategy based on application consolidation and broad enterprise resource planning systems is an idea of the past. The pace of change in their industries makes it too time consuming with a major ERP program.

At 3gamma, we are witnessing a shift from cost focused outsourcing to value creation and capability acquisition. Simply put, companies are looking for partners that can contribute with a piece of the innovation puzzle. They are looking for a unique competitive capability that complements their internal capabilities and those of other third parties. These companies are working actively with modularisation of the application and vendor portfolios. Read more about 3gamma’s view on this in our blog post on how cost can’t be the sole focus in outsourcing.

We discuss the topic further in our white paper Unleasing IT’s potential where Lars Narvselius, IT Sourcing Lifecycle Lead at 3gamma, writes: “IT needs to become an agile service integrator that can manage and govern a portfolio of ever-changing internal and external capabilities.” Get in touch with Lars for an in-depth discussion on the topic.

CIO Insight follows a similar reasoning when they argue that companies should “forget about outsourcing and think smart-sourcing”. Much research is also going into finding models and mechanisms for improving innovation capabilities in existing outsourcing relationships—especially regarding new collaborative contract models. 3gamma is working closely with partners in the field of IT law to find new ways of crafting win-win contracts that support the objectives of clients and vendors. Feel free to get in touch with Maria Ekberg for a discussion on new collaborative contract models, or contact our partners at Lindahl for a discussion on Vested©— a hybrid business model, methodology and mind-set for hyper-collaborative business relationships. 3gamma will soon release a paper that discusses agile outsourcing more in-depth, which Maria will also be pleased to tell you more about.

About the author

Maria has significant experience in all aspects of outsourcing across several domains, with a specialization in transformational outsourcing and outsourcing transition. She has worked for PA Consulting group and has actively contributed in building fast growing international software companies in the financial sector.

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