- Forrester Councils
- Councils Overview
- log in
Posted by Christopher Andrews on July 20, 2012
Services budgets represent 10% of annual IT operating and capital budgets[i], but Forrester sees considerable evidence that the influence of these IT Services vendors is proportionally higher — and growing dramatically. While there are several reasons for the rising importance of your services partners, at the most fundamental level Forrester sees that:
The demand for great services partners will be filled by a variety of providers, from traditional IT services incumbents to upstarts with cloud- and software-as-a-service (SaaS)-based business models. This changes the scope of your services initiatives, but also creates a tremendous opportunity for Sourcing and Vendor Management professionals.
To succeed, you’ll need new market knowledge, great supplier portfolio management skills, and new governance capabilities. This starts with a strategy for understanding key services market trends, but also involves creating a cohesive sourcing strategy, engaging with the right vendors, and managing those vendors over time. All the while you must balance key sourcing decisions related to cost-cutting, innovation, self-provisioning, multisourcing, and governance.
Forrester’s Services Sourcing Playbook supplies the appropriate market context, business rationale, negotiation tactics, and value measurement of IT services sourcing. The playbook is built from the ground-up around a 1.) discover, 2.) plan, 3.) act, and 4.) optimize framework to help you execute on key initiatives — and close the gap between business demand and IT supply. Download the executive overview for the services sourcing playbook for SVM pros.
[i] Forrester surveyed over 3,500 global IT budget and decision makers on the breakdown of their IT budgets in Q4 2011. Survey respondents told Forrester 10% go to third-party IT services. See Figure 2: Forrsights: Cautious Optimism In 2012 IT Spending Plans. http://www.forrester.com//search?N=10001+5001+200519&access=1&range=504001&sort=3&searchRefinement=reports#/Forrsights+Cautious+Optimism+In+2012+IT+Spending+Plans/fulltext/-/E-RES71882
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »