NILF2012_Session XA_Co-Innovating with the IT provider

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<ul><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited1</p></li><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited2 2009 Forrester Research, Inc. Reproduction Prohibited</p><p>Innovating with the IT Provider </p><p>Stephanie Moore, Vice President, Principal Analyst</p><p>NASSCOM February 15, 2012</p></li><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited3</p><p>The gap between business requirements and ITs ability to deliver is widening</p><p>How are IT and the business </p><p>filling this the gap?</p></li><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited4</p><p>Companies must engage and orchestrate external IT solutions and service vendors to fill the gap</p><p>http://www.facebook.com/http://www.surveymonkey.com/</p></li><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited5</p><p>But.innovation with service providers is rarely accidental or one-sided</p><p> For the most part, suppliers continue to emphasize </p><p>innovation as a push activity as opposed to a joint </p><p>activity at the individual account level. </p><p> To achieve true innovation, vendors have to supply </p><p>experts with deep industry expertise and an </p><p>understanding of an individual company's business </p><p> Clients have to supply business or business technology </p><p>leaders. </p><p> Innovation clauses in contracts are largely useless</p></li><li><p> 2011 Forrester Research, Inc. Reproduction Prohibited6</p><p>Which of the following IT services governance initiatives are likely to be your firm's top priorities over the next 12 months?</p><p>21%</p><p>22%</p><p>25%</p><p>25%</p><p>24%</p><p>26%</p><p>28%</p><p>27%</p><p>38%</p><p>41%</p><p>46%</p><p>3%</p><p>7%</p><p>5%</p><p>5%</p><p>6%</p><p>6%</p><p>6%</p><p>7%</p><p>10%</p><p>7%</p><p>18%</p><p>Shorten the length of our vendor contracts</p><p>Create an 'innovation council' with business leaders and execs from our strategic vendors</p><p>Increase our use of outcome-/output-based pricing</p><p>Bring work back in-house</p><p>Implement or expand the use of offshore resources</p><p>Move from staff augto a more structured approach </p><p>Take a more consolidated single-vendor approach</p><p>Move from a time-and-materials to a fixed-price pricing model</p><p>Expand our vendor management capabilities</p><p>Take a more selective sourcing or out-tasking approach</p><p>Renegotiate rates with current players</p><p>High priority Critical priority</p><p>Source: Forrsights Services Survey, Q3 2011</p><p>Base: 1,031 IT executives and technology decision-makers from enterprise companies with 1,000 </p><p>or more employees</p></li><li><p> 2009 Forrester Research, Inc. Reproduction Prohibited</p><p>Thank you!</p><p>Stephanie Moore</p><p>smoore@forrester.com</p><p>www.forrester.com</p></li></ul>