True story: A VSM executive recently renewed an agreement for a legacy on-premise human capital management (HCM) solution. In return for a five-year commitment, the vendor reduced the maintenance fee by 25% annually. Based on IDC's benchmark data, the price was, indeed, best in class. But several months later, another executive in the company’s Digital Transformation Office requested help on a transformation strategy, seeking to replace the company’s outdated on-premise HCM system with a SaaS-based solution. Should the contract renewal be classified as savings or a costly mistake?
According to IDC, by 2017, over 50% of IT spend will be for 3rd Platform technologies used to support digital transformation. However, a surprising number of enterprises lack the vision for VSM necessary to support sourcing these technologies. To make matters worse, over 40% struggle with inadequate staffing and bureaucratic processes preventing VSM operations from keeping up with the business units they support.
Sadly, the siloed operations of the enterprise discussed in the true story will result in the enterprise paying 3 to 5 times what it should pay for its digital transformations.
IDC's research and advice can help enterprises transform their VSM operations to be ready to source 3rd Platform technologies necessary to support Digital Transformation.
Welcome to the first edition of IDC’s IT Executive Programs Vendor and Sourcing Management Pulse Magazine.
This edition of VSM Pulse is focused on helping you prepare your organization for 2017.
It's time to bring Vendor Sourcing and Management from the administrative back-office to the strategy table at the front office.
We have chosen to utilize the FlipBoard platform for a unique mobile experience.
We look forward to your input and comments.