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IT Sourcing Transformation Consulting

Is IT sourcing a center of excellence for your business?

Digital transformation is a reality, and for most companies, the stakes are high: leverage a broad mix of digital technologies to grow and transform the business, or risk obsolescence. This reality is reframing the way companies think about all aspects of IT, including sourcing.

In the digital transformation era, optimized IT sourcing practices can deliver more value to the business than ever before – and that has many companies thinking about IT sourcing transformation.

IT spending is exploding both in terms of budget and number of purchases. There are more stakeholders involved in every transaction. IT buyers are under close scrutiny to make the smartest purchase with the least amount of risk, and to be hyper-responsive to the needs of the business. IT buyers are managing a larger number of vendors, whose own business and licensing/subscription models are changing quickly.

IT buying “excellence” in this landscape is a tall order. But more and more companies view IT buying as a critical value driver – especially when it comes to accelerating digital transformation initiatives.

IT Sourcing Challenges Are Common

In today’s IT sourcing landscape, the following challenges are shared by many enterprises:

VENDOR LEVERAGE

  • Vendor leverage of various types such as incumbency, integration and complexity constrains negotiation power. Vendor selling skills are off the charts, and IT buying teams must come to the table prepared.

POOR FORECASTING & VISIBILITY

  • The IT and sourcing functions are not optimally aligned, nor is the IT buying team for each large purchase, which leads to correspondingly suboptimal purchases.

MISALIGNMENT

  • Poor demand planning leads to last-minute purchases, which often leads to sourcing professionals not being involved early enough to positively influence the outcome. Visibility into future needs is not shared widely enough, or early enough, with the whole IT buying team.

INADEQUATE IT ASSET MANAGEMENT

  • The inability to establish a full and accurate inventory of software deployment and usage for individual vendor implementations – particularly the largest and most expensive estates – leads to overspending, and exposes the business to vendor audit risks.

NPI IT Sourcing Transformation Consulting Services

NPI can help you tackle these challenges with an IT Sourcing Transformation initiative. First, we conduct a thorough functional assessment of your current state. It will explore the organization, services, processes, staff and tools associated with IT supplier planning, selection, sourcing and ongoing management. One outcome is a mapping of your current state to NPI’s proprietary IT Sourcing Maturity Model.

Next, we collaborate to define your future-state IT sourcing functional design, establish a phased implementation roadmap, build the processes and tools to support the design, and execute the roadmap. The functional design is guided by this set of objectives:

  • The business receives maximum value from every IT budget dollar spent by purchasing the right things in the right way
  • Clear roles and responsibilities are established for all participants in the IT sourcing lifecycle
  • The IT and procurement functions are aligned and collaborate effectively
  • The enterprise takes a more strategic and proactive approach to leveraging current and market-available IT suppliers
  • Strategic supplier relationships are effectively governed
  • Demand planning becomes an organizational strength, and is timely
  • IT asset management procedures are integrated into the IT sourcing lifecycle
  • Practical processes and supporting tools are implemented to facilitate the transformation objectives

This is not a trivial exercise, and it takes C-Suite support to fund and realize this vision. But for organizations with deep commitment to achieving an empowered state of IT sourcing excellence, NPI is a powerful resource to help you get the job done.

Interested in IT sourcing transformation? Let's talk.