Just when multi-supplier (also known as SIAM) contracting is starting to get under control, DevOps emerges. This article looks at the interaction of the two for the design of retained and sourced IT operations. The implications for service contracts are profound and largely un-tested.
Outsourcing has always been a key component of the technology sector; however recently it has been not just basic IT services, but key CIO roles taken on by outsiders. The term ‘virtual CIO’ (vCIO) is gaining increasing momentum, and refers to an individual or service that is charged at an hourly or flat rate fee for the provision of services that incorporate technology and business strategy. vCIOs are particularly popular with small and mid-sized businesses, because they make the strategic guidance of an expert affordable.
(To read the first part of this article, click here.)
Almost a week had passed since my meeting with Jeanette and her team, and I was still reeling from the conversation. It was just so hard to comprehend how a large company can afford to alienate its supplier community. Just as I was about to hit replay on the entire situation, the phone rang.
“Good morning,” I said.
“Hey there, Dean. It’s Tino. How have you been?”
We’ve just published the latest ISG Index, which includes – for the first time – a view on the growing As-a-Service market. Whilst combined second-quarter ACV in the Europe, Middle East and Africa (EMEA) market fell by 18% year-on-year to €2.2 billion, the new data reveals record growth of the As-A-Service segment, contrasting the sluggish activity in traditional sourcing.
It’s 2016 and we have digital technology at our fingertips, yet few bank accounts can be opened without printing and signing a paper form. A student can’t get their exam results until an examiner manually crosses and marks their paper. Our reliance on paper runs deep and many business workflows continue to bear the “paper weight” burden.
Business is going through a profoundly transformational period that has been called both “The Digital Era” and “The Age of the Customer”. Global innovation driven by the growth of affordable networked storage, sensory, and processing power has made possible dramatically new ways of doing business. New capabilities are touching nearly every aspect of business, and older approaches are fast becoming uncompetitive and obsolete.
Pokemon Go signals the mainstream arrival of augmented reality (AR). From here on in, virtual reality (VR) will always be the poorer cousin – or bridesmaid if you will, and never the bride – in the fight for digital’s push out through the screen into reality.
This new (albeit long-pending) medium of AR will have a huge impact on local and B2C advertising. In fact you might argue it already has, adding billions to the valuation of Nintendo after just a week since Pokemon Go launched – a truly remarkable week.
Professor Horacio Falcão, a Senior Affiliate Professor of Decision Sciences at INSEAD, warns companies should not start – nor necessarily end – on “price” when it comes to negotiations.
Falcão has written on the concept of value for several years and his work includes the 2010 book Value Negotiation: How to Finally Get the Win-Win Right.
“We are nothing more than a bunch of pawns on this outsourcing checker board,” Jeanette said.
“I think you mean ‘chessboard’,” I said smiling at her.
“You know damn well what I mean, Dean. Hey, that rhymes,” Jeanette said, returning the smile.
“Sadly I do understand, and, from what you’ve described, I have to agree with you.”
Europe is in turmoil after Great Britain’s vote to leave the European Union. Those who now claim to know what will happen now – in outsourcing or in other areas – will make two big mistakes: First, they will show that they don’t understand what Brexit is. Brexit is, to use the words of author Nassim Nicholas Taleb, a “black swan”: an unexpected event with largely unforeseeable consequences, just like 9/11 or the Lehman Brothers bankruptcy filing. Second, they will simply be wrong.