“You can’t do today’s job with yesterday’s methods and be in business tomorrow.”
Outsourcing is a fact of modern business, but this element of the value chain often struggles with innovation, change and rapid feedback. New Agile methods seem especially hard to use with suppliers, given a traditional procurement model based on controlling schedule, scope and budget. This paper looks at traditional and contemporary practices, reflects on the changing dynamics of the customer/supplier relationship, and identifies priorities for evolving the role of procurement in IT outsourcing. Major ideas covered include: how to identify the type of relationship required and how collaboration can be managed to deliver greater value; an evolved role for procurement in partnership with IT, and the contract that can help manage the new relationship.
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