The Case for Agile Strategic Technology Sourcing.

Yesterday’s large enterprise IT department is transforming to become the IT strategic sourcing and service management centre. Accordingly the IT strategic sourcing operating model needs to transform to reflect its new role within the business. The IT Department is now open for business. There is no alternative. The days of a closed shop are gone. There is no longer time or resource to follow the manufacturing model of IT services in a large enterprise. Buying in and assembling equipment and software is no longer efficient. The business model has shifted to a retail model. The IT department is becoming a channel for a wide selection IT services to be made available to the increasing demands of internal and external customers.

The consumerization of IT has created an IT literate workforce that recognise the quantity and diversity of applications and infrastructure services that are available on the market. Tolerance for a restrained underdeveloped internal IT department will be short lived. As part of the value chain IT Strategic Sourcing must be close to its customers, understanding the customer segment profile and its demand habits. Differentiating channels that supply commodity services from those that supply solutions or drive more sophisticated business outcomes. Building processes that collapse the supply chain and enhance its push and pull responsiveness.

The IT Strategic Sourcing function must be equally nimble and open to change. Working into the strategic goals of the company requires the ongoing realignment of business objectives that run mercurial to changes in the industry and the socio-economic environment that underpins it. Neither the sourcing process, delivery model, contract, operating model or the service design can be any thing less than flexible and adaptive. Any form of lock-in or rigidity will create drag and impact competitiveness

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