New Sourcing Strategies Can Deliver Transformation for 40 Percent Less Than Traditional Approaches
ISG SourceIT event will explore sourcing initiatives that deliver cost savings amid digital business transformation
New, holistic sourcing strategies can help reduce the cost of digital business initiatives by up to 40 percent compared with traditional approaches, say experts with Information Services Group (ISG), a leading global technology research and advisory firm, appearing at the upcoming ISG SourceIT event in Dallas.
The September 28–29 event, at the Westin Stonebriar in Frisco, Tex., will bring together business and technology professionals and industry thought leaders to discuss ways to leverage technology to optimize costs across the enterprise and with external partners.
Technology-enabled disciplines such as Cloud FinOps, Technology Business Management, Software Asset Management and Concurrent Transportation Management will be discussed.
Read More: Everstream Analytics Named 2022 Top Food Chain Technology By Food Chain Digest
To optimize costs today, processes need to be dynamic, transparent, collaborative and close to the business, says Bill Huber, partner, ISG Digital Platforms & Solutions, and chair of the event.
“Managing costs requires a shift from fixed commitments to long-term strategic relationships,” said Huber. “Traditional levers of spend aggregation and economies of scale can hinder flexibility and be counterproductive to cost optimization. Collaborative sourcing that leverages emerging technologies is key to increasing agility.”
Huber said IT sourcing leaders must take on new roles and competencies to enable innovation. Transitioning to independent project estimations, interdependency analyses, transformation governance and value realization frameworks can accomplish digital business transformation initiatives at a cost up to 40 percent lower than traditional, linear approaches.
Read More: SalesTechStar Interview With Catherine Blackmore, GVP of Customer Success & Renewals at Oracle
The event will include sessions on sourcing strategies to drive topline growth, managing cloud costs, aligning procurement with digital business transformation, the growing need for cybersecurity, and sourcing agile services. A panel discussion on shifting from category management to solution optimization will feature Anand Iyer, director of Technical Strategic Sourcing for customer engagement platform Twilio.
The latest ISG Index™, reporting on market trends for the second quarter and first half, shows market demand remains high, as companies continue to embrace cloud computing and leverage technology to improve productivity, lower costs and get closer to customers to drive revenue growth. Yet the market faces headwinds, including rising interest rates, lingering supply chain issues, a tight labor market and higher energy prices.
“In this environment, breakthrough cost optimization is readily achievable, but it requires a new generation of techniques that replace the cost optimization approaches of the past,” Huber said. “Companies must move beyond optimizing specific business areas in a silo, and instead pursue holistic strategies and strategic partnerships that recognize lower costs in one category can replace higher ones in another.”
