It's Time To Get Serious About Services Innovation

Year over year, Forrester hears from clients who are frustrated with their providers’ inability to provide innovation. In 2011, 60% of respondents to Forrester's Sourcing and Vendor Management Survey cited "Limited ability to define or provide innovation" as one of the top complaints when evaluating their suppliers. The frustrations behind these numbers include:

  • “I have to push my suppliers for every bit of innovation they provide outside of the contract.” 
  • “Vendors consider 'innovation' anything that involves selling me more stuff.”
  • “They say it's innovation, but it’s not even specific to my business.”

Service providers, of course, are eager to market themselves as innovative. They’re competing in a market filled with scrappy upstarts — and they’re all striving to differentiate offerings. Yet they are also frustrated with innovation — the innovation demands of clients. The common complaints we hear from them include:

  • “It’s rare that clients can define what they want when they ask for innovation.”
  • “Our clients always tell us they want innovation. They are just not willing to pay for it.”
  • “We can’t provide innovation for clients if they won’t put us in touch with their business.”
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