New strategies to transform service delivery
Back in 2014, market research firm IDC asserted that CIOs needed to drop their old roles as technology overlords and step into new ones as leaders of digital business transformation. But many IT leaders still struggle to understand how to implement new technologies to improve service delivery and enhance
This is hardly a surprise. Only a tiny fraction of IT spending is allocated to IT innovation. Year-over-year IT spending is on the decline, and satisfaction with IT’s speed of delivering new applications and services remains low.
At the heart of many organizations’ struggles to optimize IT is how they have used sourcing in their business models. Too many organizations are bogged down by an antiquated and inefficient vision of outsourcing as a strategy designed solely to shave off labor costs. Some organizations still sign multi year outsourcing contracts centered around moving labor-based activities to offshore locales, which has the unfortunate consequence of incentivizing outsourcing suppliers to maintain the status quo, deliver less innovation, and minimize services. None of these factors align IT outsourcing activities with business growth.
In fact, outsourcing can create value and fundamentally change the way companies do business. Innovative and truly successful organizations use outsourcing as a way to enhance service delivery, accelerate time-to-market, implement new technologies, foster innovation, and make smarter decisions.