NILF2012_Session XA_Co-Innovating with the IT provider

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  • 2011 Forrester Research, Inc. Reproduction Prohibited1

  • 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

  • 2011 Forrester Research, Inc. Reproduction Prohibited3

    The gap between business requirements and ITs ability to deliver is widening

    How are IT and the business

    filling this the gap?

  • 2011 Forrester Research, Inc. Reproduction Prohibited4

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

    http://www.facebook.com/http://www.surveymonkey.com/

  • 2011 Forrester Research, Inc. Reproduction Prohibited5

    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

  • 2011 Forrester Research, Inc. Reproduction Prohibited6

    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

    smoore@forrester.com

    www.forrester.com