nilf2012_session xa_co-innovating with the it provider

© 2011 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited

Innovating with the IT Provider

Stephanie Moore, Vice President, Principal Analyst

NASSCOM February 15, 2012


The gap between business requirements and IT’s ability to deliver is widening

How are IT and the business

filling this the gap?


Companies must engage and orchestrate external IT solutions and service vendors to fill the gap

http://www.facebook.com/

http://www.surveymonkey.com/


But….innovation with service providers is rarely accidental or one-sided

For the most part, suppliers continue to emphasize

innovation as a push activity as opposed to a joint

activity at the individual account level.

To achieve true innovation, vendors have to supply

experts with deep industry expertise and an

understanding of an individual company's business

Clients have to supply business or business technology

leaders.

Innovation clauses in contracts are largely useless


“Which of the following IT services governance initiatives are likely to be your firm's top priorities over the next 12 months?”

21%

22%

25%

25%

24%

26%

28%

27%

38%

41%

46%

3%

7%

5%

5%

6%

6%

6%

7%

10%

7%

18%

Shorten the length of our vendor contracts

Create an 'innovation council' with business leaders and execs from our strategic vendors

Increase our use of outcome-/output-based pricing

Bring work back in-house

Implement or expand the use of offshore resources

Move from staff augto a more structured approach

Take a more consolidated single-vendor approach

Move from a time-and-materials to a fixed-price pricing model

Expand our vendor management capabilities

Take a more selective sourcing or out-tasking approach

Renegotiate rates with current players

High priority Critical priority

Source: Forrsights Services Survey, Q3 2011

Base: 1,031 IT executives and technology decision-makers from enterprise companies with 1,000

or more employees

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you!

Stephanie Moore

[email protected]

www.forrester.com

nilf2012_session xa_co-innovating with the it provider

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