Change, Outcomes, Risk and Agility

4 Major Sourcing Trends for a ‘New Normal’ World

Major risks transform a relatively predictable world into a “new normal” in which the only certainty is continuous, often disruptive, change. Sourcing, procurement and vendor management leaders must sharply move from their static stance onto dynamic sourcing and its 90-day initiatives.

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Overview

Change

After the COVID-19 pandemic, business leaders are accelerating change to cope with the “new normal.” Digital transformation is accelerating in most organizations, while mergers, acquisitions and divestitures (MA&D) will also happen in many organizations.

Outcomes

CIOs are challenged to cope with massive parallel changes where only achievement of business outcomes, ROI and time to solution count. Long-term initiatives must be broken into agile steps, and CIOS are challenging complacent service providers.

Risk

Bimodal drivers (cut cost while investing in innovation), accrued resilience, risk reduction and risk sharing require far more careful selection of providers, detailed solution co-design, and high-quality relationships.

Agility

Years-long outsourcing negotiations and low satisfaction service relationships that have been the norm for the past 40 years are not suitable for the new normal. Organizations will be challenged to rapidly switch to the new dynamic sourcing and its 90-day agile deals.