Come Join The Sourcing & Vendor Management Analysts At IT Forum

Forrester’s IT Forum 2010 in Las Vegas (May 26-28) and in Lisbon (June 9-11) is around the corner, and our team is looking forward to the opportunity to share our latest experiences, research insights, and strategies for maximizing the value of your technology and vendor investments.

The theme this year is "The Business Technology Transformation: Making It Real." As firms embark on the transformation from IT to BT, sourcing and vendor management professionals must assume new roles. They must help the business understand key technology trends and the trade-offs of new and legacy sourcing models. They play a crucial role in optimizing technology spend -- and in making sure their firms are taking advantage of newer models like SaaS and cloud services where it makes sense.

We’ve got a series of great sessions focused on sourcing and vendor management strategies for making BT work across major areas of technology investment in applications, infrastructure, services, and telco. The sessions include:

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What Do SAP Clients Need To Know About Implementation And Support Services, SAP's Cloud And On-Demand Services, And Offshoring?

The SAP services market is undergoing significant change: provider consolidation, changes in pricing models, new delivery options, and cloud-based deployment. At the same time, firms are entering 2010 with an eye to growth and business strategy enablement, after significant focus on cost-cutting during the recession. Firms struggle with finding the best services provider for their SAP project and the best delivery, pricing, and deployment models to ensure value, ROI, and success in achieving business goals,. Increasingly, firms are also considering Cloud and SaaS delivery models.
SAP users wondering about the latest trends in SAP services – from pricing models to multi-sourcing to cloud – are welcome to join us for an interactive session next Thursday March 25th. Moderated by Forrester’s George Lawrie, Bill Martorelli, Euan Davis, Stefan Ried and I will lead an interactive discussion around:
- SAP services provider landscape. The market has undergone significant consolidation, with major acquisitions by firms like PwC (BearingPoint), Xerox(ACS), and Dell(Perot) as well as numerous smaller acquisitions. Leading India-based firms have rapidly built their strategy consulting capabilities and now challenge the MNCs in higher value project work.
- Offshore delivery. Offshore ratios have grown extremely high. Implementation and project work is commonly 60% or more offshore; support and maintenance work surpasses 90%. Firms’ offshore strategy is broadening beyond India into geographies such as Latin America, China, and Philippines.
- Outsourcing and AMS work. Firms weigh the trade-offs between single-sourcing their project across implementation, AMS, and hosting versus using multiple providers. Firms also struggle with pricing models and SLAs, with many firms exploring outcome-based pricing models that shift risk to their provide. Outcome-based pricing also provides a potential foundation for innovation and savings beyond labor arbitrage.

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Delivering on SaaS' Promise of Flexible Subscriptions

SaaS has long promised the concept of usage-based pricing, elimination of shelfware, and long-term commitment to value and total cost of ownership  (TCO). But some clients have questioned how true this is in practice. With more and more clients signing longer deals of 3-5 years in length and sometimes struggling to get an exit clause, clients question whether they can truly pay for what they use – and eliminate or redeploy unused subscriptions.  

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Looking To Save And To Protect Your Enterprise’s Future Interests In Your Negotiations With SAP?

SAP’s dominant negotiating position is often a challenge for sourcing and vendor management professionals looking to cut costs and avoid pitfalls in contracting.  A tough year for SAP with a 40% drop in license revenue in the first half of 2009 compared to last year presents new challenges in negotiating.  Has this drop made SAP more flexible in sales negotiations, or more determined to fight for every dollar it can get, hold firmly to standard discount levels and force through its maintenance price hike?

Forrester Research, led by Principal Analyst, Duncan Jones, Senior Analyst, Liz Herbert, and Research Associate, Elizabeth Rose, is preparing to tackle these problems and publish a report on pricing trends and best practices for negotiating with SAP and we need you. 

Our report will answer the following key questions:

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Firms Get More Strategic About SaaS Sourcing in 2010

Sourcing executives are setting their strategic direction for 2010 and beyond and increasingly asking: “What role should we play in SaaS buying decisions?”

Many sourcing executives see SaaS coming into their firms under the radar screen, through divisional, try-and-buy style purchases, often low-cost enough to go largely undetected – at least in their initial phases. However, they also see SaaS’ growing importance as a key strategic initiative in their firms and the trend towards SaaS becoming ubiquitous in the larger software market. Therefore, they want to better understand existing SaaS solutions that are being used in their firms today – where, when, why – and also understand when it makes sense to proactively push SaaS as the best overall solution based on factors such as TCO, flexibility, usability, IT staffing considerations, and upgrades.

Key considerations for sourcing SaaS include:

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