Adaptive Sourcing - Gartner's take

Interesting article from Gartner on future of contracting. As typical, it's long on consultant-speak ("many CIOs are creating a bimodal IT organization"); and short on detail.

The big takeaways are

  1. IT is moving from Cost Center to Revenue Generator. This is a big shift - it means that instead of being measured on their bottom-line impact; IT is being more closely linked to Technology; which is driving top-line revenue
  2. Impact on Sourcing Advisory is significant. For 30-years, clients have complained about lack of innovation in their outsourcing agreements. The technology-driven value proposition absolutely requires innovation. Unless innovation can be infused into the supplier/client relationship, a sourcing advisor's terabyte's of templates are meaningless.
  3. Focus on "Adaptive." My colleague, Tom Young (www.rumjog.com) has said for several years now that the relationship needs to be broadly defined - closer to a handshake. He describes that wide swim-lanes, with agreed upon rules of engagement, will define the Adaptive Sourcing relationship.

Obviously, we at Fine Line believe strongly in the Adaptive Sourcing framework. Having spent 15-years negotiating Outsource agreements from both sides of the table, it now really seems backwards to exclude a supplier from the solution portion of the deal. Why not bring them in early and get them to buy into the solution?