Justice: The new customer is a blend of the CIO and the business. The CIO takes on more of the governance aspects of the provider relationship and manages the overall technology impacts across the enterprise that includes a blend of sourcing models to deliver increased value. The business side continues to mature as a technology buyer, not only to provide business requirements but also to have a strong and educated opinion on the technology that they want to use to further the goals of the business.
CIO.com: What does that mean for the service providers? Who will be the winners and losers?
Change is constant, but always difficult and often mismanaged. Ensure you have aligned the business goals with the service delivery model.
Justice: Service providers will need to develop or enhance strategies and skills that position them as "business first" solution providers and not solely as technology or transaction companies. Those that can provide business- and industry-specific solutions that create innovation, reduce costs, reduce risk and provide competitive advantage for their clients across the entire back office will be the winners.
CIO.com: Will the vendor sales teams have to make adjustments?
Justice: They will need to become more focused on business outcome than on price alone. Key measures of success need to focus on the value-added capabilities of the organization to bring innovation and improve quality, flexibility and speed to market while integrating with all areas of the business and not just certain parts of it.
CIO.com: This next generation sourcing model has clear benefits, but change is difficult. How can customers and service providers overcome inertia?
Justice: Leadership needs to come from the top. Successful organizations set clear objectives in their sourcing strategies from their leadership. This is not a "once and done" model. It requires a consistent, well-thought-out and ongoing communication of this strategy and the change that the organization is going through. The service providers that will be successful are those that partner with the organization to bring the change management and communication mindset that identifies them as part of the team and supporting the change.
CIO.com: You say that such changes may be hardest for those who have been most successful at outsourcing for cost savings in the past.
