Home Agenda & Programmes Mastermind Keynotes One-on-Ones Hotel & Travel Partners ITxpo Brochure (PDF) Documentation Florence, Italy 10-12 March 2003 San Diego, CA, USA 23-27 March 2003 Orlando, FL, USA 19-24 October 2003 Past Symposium/ITxpo Sydney, Australia 12-15 November 2002 Cannes, France 4-7 November 2002 Tokyo, Japan 23-25 October 2002 Orlando, FL, USA 6-11 October 2002 Johannesburg, South Africa 4-7 August 2002 San Diego, CA, USA 29 April - 2 May 2002 Florence, Italy 8-10 April 2002		Gartner Vice President, Roger Cox New Attitudes Needed to Achieve Successful Sourcing Wednesday, 6 November 2002 Four years ago, 86 percent of CIOs said they were satisfied with their outsourcing contracts. Today, the overall satisfaction rating for the IT services industry is just 50 percent. “That’s a five on a 1-to-10 point scale, with 10 being nirvana and one being a very angry and disappointed customer.” And this is the situation, according to Gartner vice president Roger Cox, of a services business that is expected to grow steadily in coming years. In fact, it seems set to grow almost in spite of itself. Something has to be done, Cox said, speaking at Gartner Symposium/ITxpo 2002 in Cannes, France on Tuesday. And, he warned, “As organizations become more dependent on long-term relationships with service providers, we believe that improved collaboration will not only be beneficial, but essential.” For the future, the issues are more about “how” to outsource than “what.” Cox moderated his warning by explaining the actions that enterprises should take to get their business units, their internal IS groups and external service providers all working toward shared goals with the same expectations and the same deal structures. Enterprises should begin by reviewing the portfolio of service deals they have with external suppliers. Each deal should be reviewed against five factors: Business Focus. Are long-term wishes that conflict with short-term considerations built into the contract? Services Contracts. Has the enterprise committed to a long-term relationship on today’s short-term imperatives? Services Market. Has the enterprise weighed the implications of job cuts and consolidation continuing at and among suppliers beyond 2003? Contract Flexibility. Does the contract wrongly assume that stability will follow initial transformation when the reality is more likely to be continuing transformation? Sourcing Capability. Has the internal IS group developed the skills for defining and negotiating contracts over the entire sourcing life cycle? Following this review, enterprises need to establish business groups to take care of the four essential management functions. These are: Decision Making. Senior executives need to set the direction of the deal - deciding strategy, scope and funding while providing the forum for arbitration. Design Authority. The enterprise should lead a group setting requirements, standards and integration tasks. Business Office. A group must provide contract management, risk and relationship management, and reporting. Delivery. The combined teams work to ensure that projects are implemented, operations are supported, and costs and resources effectively managed. These are just some of the essential steps required to cope with pressure from senior executives to achieve demonstrable savings or benefits when using external suppliers. Cox concluded by telling delegates that “the future is not about new applications, it is about new attitudes.” Back to Overview Focusing the Lessons of Gartner Symposium/ITxpo 2002 Mastermind Keynote: Microsoft Puts Costs High on Agenda Mastermind Keynote: The Powerful Cocktail of Real-Time Enterprise More... New Tablet PCs Draw Crowds at ITxpo New Architectures for a New World of Connected Business Choosing Mobile Applications The Powerhouse Vendors: Their Strategies and Challenges Successful CRM Management Requires High-Quality Data New Attitudes Needed to Achieve Successful Sourcing More... Gartner Says Consolidation to Continue Across the European IT Industry in 2003 Gartner Says New Economy gives way to ‘Now Economy’ and the Real Time Enterprise More...

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