Gartner Outsourcing & Vendor Management Summit 2011

Transcription

1 September Orlando, FL To provide you with an at-a-glance review, this trip report summarizes key learning from the recent Gartner Outsourcing & Vendor Management Summit, held September in Orlando, FL. You ll find a thumbnail view of select keynotes, relevant takeaways from key sessions and pertinent details to aid you in your reporting efforts. Conference Highlights...Page 1 Conference Features...Page 2 Hot Topics...Page 2 Guest Keynotes... Page 3 Gartner Keynotes...Page 4 Findings From Gartner Outsourcing & Vendor... Page 6 Post-Event Resources... Page 9 Sponsors... Page 10 Save the date Gartner Outsourcing & Vendor Management Summit 2012 will take place September at the Gaylord Palms Resort and Convention Center in Orlando, FL. Be sure to bookmark and check back in the coming months for conference content details. Conference Highlights Economic, business and technology forces are creating a new, outsourcing world, characterized by accelerating change and escalating business expectations for increased value from IT and sourcing relationships. New sourcing competencies are mandatory for long-term success. But innovative actions from both buyers and providers of IT services are needed more than ever to drive business value and create sustainable sourcing relationships. What are they? How should they happen? What direction should they take? Those questions were are at the heart of this year s Gartner Outsourcing & Vendor Management Summit, the event where attendees had the time and opportunity to take a step back and consider outsourcing s big picture. More than 800 business, IT and sourcing executives gathered in Orlando, FL, for two and a half days of strategic recommendations and practical guidance across five tracks and 97 sessions. In fact, 29 Gartner analysts were on-site, not only taking the helm at conference sessions but also moderating 18 analyst-user roundtables and consulting with attendees at scores of one-on-one sessions. 1

2 September Orlando, FL Conference Features Foundational, advanced, practical and strategic sessions New Gartner research and analysis presented for the first time at this event ROI-focused content designed to deliver immediate results End-user case studies from early adopters Actionable insights on linking business and IT strategies Industry best practices, metrics and how-to recommendations Advanced guidance beyond the just-getting-started phase Objective analysis on today s game-changing technologies Thought-provoking keynote panels and presentations Private analyst one-on-one sessions Analyst-user roundtables including the introduction of advanced roundtables Sponsor showcase with 33 solution providers Solution provider sessions Hot Topics New options, trends and risks for cloud sourcing Advancing your sourcing strategy, management and governance competencies Understanding the IT services marketplace and vendor competitive landscape Building your vendor management competency to maximize control Business-aligned outsourcing Strategic IT vendor management Global sourcing and alternative service delivery models Optimizing vendor selection and contracting practices Structuring flexible contracts and relationships Best practices in contracting and pricing approaches Low-cost industrialized services Using ITO and BPO to drive growth and business improvement Service-level agreements and vendor performance metrics 2

3 September Orlando, FL Don Tapscott Chairman of Moxie Software; Author; Adjunct Professor Guest Keynotes Taming the Future: Embracing New Technologies for High-Performance Sourcing Presenter: Don Tapscott, Author of Macrowikinomics: Rebooting Business and the World ; Chairman of Moxie Software For companies to succeed, leaders must think differently about how to compete and be profitable, and move toward an economy of collaboration which, in turn, will make the concept of outsourcing obsolete. Right now, deep changes in the structure and modus operandi of businesses and our economy are causing companies to rethink how they create value, design architectural systems and orchestrate and organize intelligence. All this is giving rise to newly emerging business models in which business processes are becoming less hierarchical and more networked. In his compelling keynote Taming the Future, Don Tapscott, one of the world s leading authorities on technology and innovation, discussed the six networked business models and their adjunct: the five principles for partnership management collaboration, openness, sharing, interdependence and integrity. According to Tapscott s extensive research, the concept of partnership management will eventually eclipse our conventional notions of vendor management. Organizations that cultivate nimble, trust-based relationships with external partners will not only be in a better position to align IT with business objectives but will also have the opportunity to form vibrant business ecosystems that create value more effectively than hierarchically organized businesses. Bottom line: An open and networked business environment will improve both ROI and business prowess. Those organizations that do not adapt to this collaborative model of doing business will eventually be left behind. Creating Value in Partnering Through Internal and External Business Relationship Management Presenter: Larraine Segil, Senior Research Fellow at the IC 2 Institute at the University of Texas, Austin; Author of Measuring the Value of Partnering Larraine Segil Senior Research Fellow at the IC 2 Institute at the University of Texas, Austin; Author Supplier relationship management has become a science as well as a series of best practices, enabling customers and suppliers to develop integrated and valuable sustainable relationships. But how do you manage the external and internal changes that move the dial in delivering value on these relationships? The competitive forces that exist today between suppliers and customers cause stress to even the most seasoned executives and managers. In this keynote session, Larraine Segil offered a hands-on approach to that common dilemma and provided real-life management tools to simplify and create increased value in your key business relationships. Critical takeaways included understanding the differences between a dealmaker versus an implementation mind-set. While a dealmaker s approach is a common stance assumed 3

4 September Orlando, FL Guest Keynotes (continued) by both customers and suppliers, it is the implementation mind-set that lays the groundwork for a sustainable relationship at the very start of the negotiation process, one driven by the following actions: Propose agendas in advance, so both parties can prepare. Suggest questions for discussion and request pertinent data. Ask tough questions about your own and their ability to deliver. Establish early warning systems and contingency plans. Make implementation a shared concern. Repeatedly ask about stakeholders: Whose approval and cooperation is needed? Who can interfere with implementation? Helen Huntley and Conference Chair Gartner Keynotes Revolution Amidst Evolution: The Top 10 Game Changers for IT Sourcing Presenter: Helen Huntley, and Conference Chair What are the must-know factors transforming IT and sourcing? How can enterprises leverage the rapidly evolving outsourcing market to ensure they achieve expected business outcomes? In this keynote presentation, Helen Huntley discussed the top 10 game changers that IT and sourcing leaders must understand and manage to achieve long-term success. They are: Uncertain economy: The worldwide economic challenges experienced since 2009 have propelled the acceptance and adoption of alternative delivery models at a greater pace. Gen Y workforce: With the changing workforce, employees have increased expectations for agile, flexible and responsive technology. They demand more from IT and are apt to bring their own solutions to the workplace. Globalization: The IT labor pool, established by the Internet and global connectivity, has broken down the notion of on-site delivery only. But different delivery areas carry different risks. Sustainability: Your vendor evaluation criteria will change, as sustainability goals/ directives permeate the enterprise. IT will be further driven to consider how technology can save resources. Cloud computing: Cloud computing represents a fundamental and irreversible shift in architectures, development and delivery methodologies, and management strategies. Industrialization: Customized IT environments are on the decline, driving solutions that are standardized, highly automated, repeatable, scalable and reliable. Asset light: A shift from internal assets ownership to external assets is moving IT to massively scalable, standardized, componentized and delivered as a service. Consumerization: There is a marked acceleration of consumer-oriented technologies and behaviors into enterprise IT strategies. 4

5 September Orlando, FL Gartner Keynotes (continued) Unpredictability/vendor risk mitigation: Significant risks are present for IT regardless of who delivers. But specific risks relating to external vendors for IT delivery exist and must be continually assessed and controlled. Externalization: Organizational financial models will change from investment in IT as a capital expenditure to managing IT as an operating expenditure. The role of IT will also evolve to be less focused on technology delivery and more focused evaluating new products/services from vendors and vendor management. Realizing the Promise: Six Steps to Better Outsourcing Presenter: Linda R. Cohen, and Distinguished Analyst Linda R. Cohen and Distinguished Analyst Even with two decades of outsourcing experience, companies still struggle to make outsourcing work. In this keynote address, Linda R. Cohen identified six outsourcing problems endemic to outsourcing and how to overcome them. Problem Misalignment Pricing Competition Demand Control Commitment Corrective Action Align all sourcing actions to business objectives. Evaluate and implement flexible pricing. Balance healthy competition with ecosystem collaboration. Establish demand management responsibilities, authorities and processes. Analyze the elements of trust and control to maintain balance. Establish mutual agreement on the benefits for each strategic provider. The Cloud Computing Phenomenon Recharges Sourcing Strategies Presenter: Daryl C. Plummer, Managing and Gartner Fellow Daryl C. Plummer Managing Vice President and Gartner Fellow Cloud computing has become a hot topic that s been described in many contradictory ways. But despite the lack of a cohesive definition, cloud models will continue to yield very real benefits that will foster new value. Those benefits along with the risks were explored in full in this keynote address with Daryl C. Plummer. After defining cloud computing, Plummer examined the cloud s next evolutionary phase in business and discussed how cloud services will foster an economy based on delivery and consumption of everything from storage to computation, to video, to finance deduction management. To prepare for this next stage, he encouraged organizations to: Establish a set of value propositions for adopting cloud computing. Ensure that the public cloud can t meet your needs before building a private cloud. Work with your users to understand their needs for SaaS. Verify that bookkeeping practices will not be affected adversely by cloud adoption. Establish and demand rights as consumers of cloud services. Seek cloud brokerages to enhance performance and cloud service capabilities. 5

6 September Orlando, FL Findings From Gartner Outsourcing & Vendor Management Summit 2011 Here are key recommendations from selected conference sessions, especially useful for your 2011/2012 planning and strategy considerations. B7. Moving Up the Vendor Management Curve Presenter: Christopher Ambrose, Christopher Ambrose How does an organization move up the vendor management maturity curve? The first step is assessing just how well an enterprise s vendor management discipline is performing in these four dimensions: governance, processes and tools, people and organization, and analytics and trending. But that s only the beginning. In this session, Christopher Ambrose discussed in full the criteria used in the Gartner maturity assessment framework and laid out a road map for vendor management maturity that included the following: Develop a set of goals and specific objectives to each of the four dimensions. Don t work in isolation: Understand integration and relationship point with other IT services and operations processes. Recognize that there are five levels to the maturity assessment framework: ad hoc, repeatable, defined, quantitatively managed and optimizing. Improve one level at a time. Don t try to skip a level. Implement an iterative, ongoing maturity process. Balance efforts across process groups. Don t focus on one group to the detriment of others. Measure, measure, measure: Use process performance metrics. Reassess maturity progress every four to the five months. Have realistic objectives; not all processes have to reach Level 5. The incremental effort might outweigh the marginal benefits. E1. Pricing Methods and Contract Terms: Be Prepared for Tomorrow s Solutions Today or Face Difficult Challenges Presenter: William Maurer, William Maurer Many new solutions, pricing models and ways of measuring success continue to emerge within the IT infrastructure and applications outsourcing world. In this session, William Maurer helped the audience to define the foundation that all organizations must build upon to achieve success in the complex world of IT services, and offered the following recommendations to keep pace with pricing methods and contract terms: Continue to analyze your sourcing options, because outsourcing is a strong, viable option that continues to grow. Identify new opportunities for the enterprise that are emerging due to cloud computing, and examine the risks. 6

7 September Orlando, FL Findings From Gartner Outsourcing & Vendor (continued) Develop a good sourcing strategy that allows you to select the appropriate bundling option for your requirements. Understand that the evolution to cloud computing offerings is not the death for traditional IT. In fact, it s an opportunity to reinvigorate IT s service delivery role and the service integration role. A6. Global Delivery: Understand the Risks and Rewards of Your Country Options Presenter: Ian Marriott, Ian Marriott Is India still the go-to location for offshore services? What other countries should you consider as potential offshore and nearshore locations? This session explored the latest developments occurring in global delivery across regions and countries while highlighting the risks and challenges inherent to offshoring. Despite the widespread use of offshore services, many organizations still struggle to make critical provider choices, and too often focus on cost as the dominant factor in globally delivered services. Attendees learned more about the 10 criteria to use when evaluating a provider s global delivery model (GDM). They include government support, cost, infrastructure, global and legal maturity, cultural compatibility, educational system, political and economic environment, data/ip security and privacy and labor pool language. Additional takeaways included the following: Some risks you can manage, others you mitigate: Know which is which. Understand the rewards, and potential benefits, as well as the risks. Actively manage the challenges: Delegated problems are still your problems. The country landscape is complex: Instigate a comprehensive evaluation strategy. Not all service providers GDMs are the same: Ensure you can evaluate their effectiveness. B3. The Vendor Management Value Proposition Presenter: William R. Snyder, William R. Snyder Although IT organizations are increasingly adopting vendor management as a core discipline, questions remain regarding return on investment, which in turn can be an impediment to funding and long-term success. Part of the reason is that many organizations do not perform vendor management cohesively or consistently and typically manage it on an event basis. Turning that around requires an understanding of the value propositions behind vendor management as well knowing how to measure and communicate this discipline s value to the larger organization. With that in mind, this session offered the following recommendations: Align with organizational goals: A good vendor management program aligns its activities with the organization s larger needs. For instance, if transformation is your goal, pushing a vendor to the lowest cost will likely be counterproductive and could actually drive costs higher. 7

8 September Orlando, FL Findings From Gartner Outsourcing & Vendor (continued) Recognize that the value of vendor management extends beyond strict objective measures. Subjective measures are key and can actually be made objective by using baseline-trend line methodologies. Keep in mind that vendor management will not solve all vendor-related issues, but should show overall improvements. C1. Considering Cloud: What s Good, What s Bad and What s Risky Presenter: Frank Ridder, Frank Ridder When it comes to leveraging cloud services as part of their sourcing mix, more and more buyers are asking for increased clarity. The confusion is probably not going away anytime soon and it is debatable whether the term cloud is here to stay. However, what certainly will remain is the key attributes we ascribe to cloud services: shared, multitenant, elastic, usagebased purchases and outcome-oriented. Examining the key dilemmas IT and sourcing executives face when considering cloud services as an option, this session encouraged buyers to consider the following areas: Commitments: While cloud service providers need to improve their agreements, you need to improve your ability to accept highly industrialized services. Consuming: Understand the changing buying schema. Cloud service providers target business buyers with spot-on solutions. Do not underestimate consumerization. Cost: It is not what it seems. Include all internal and transition costs when you develop the business case for cloud services. Do not underestimate risk adjustment. Combination: Plan for coexistence. Hybrids need to be managed for the next couple of years. Invest in your own service integration capability or establish new partnerships. Commoditization: Treating everything as equal helps you to optimize your environment. Learn how much commoditization you can accept and still maintain a culture of differentiation. Attendee snapshot Who participated in the 2011 conference? More than 800 business, IT and sourcing executives, including: Decision makers: 37% were at the manager level; 43% were at the director level or above. Cross-section of industries: Attendees came from various industries including financial services, healthcare, manufacturing, energy and the public sector. Global 1000: Over 72% of attendee companies have an employee base of 5,000 or more. 8

9 September Orlando, FL Post-Event Resources Customizable post-event worksheet Take a moment to complete your own post-event trip report, a valuable resource for future reference and a great way to share with colleagues what you learned. Visit to access the trip report worksheet. Learn more with relevant research Want to learn more about the topics that interest you most? Turn to the end of each session presentation for a list of related Gartner research notes. Select Gartner research is available on demand at gartner.com. Access streaming video and presentation slides of conference sessions Free to attendees At the conclusion of the conference, our Web-based Events On Demand is available to full-conference attendees online FREE for one year, post-event. Streaming video, synchronized to searchable speaker captions and slides, captures every analyst-led presentation, including Gartner keynotes and select solution provider sessions. Visit GartnerEventsOnDemand.com and log in with your address and registration ID/ badge number. If you have any questions, please contact eventsondemand@gartner.com. For $295, you can download files and share your Gartner summit experience with colleagues or watch or listen to the presentations while traveling. Click the Add Download banner on any page of GartnerEventsOnDemand.com. See you next year in Orlando! Gartner Outsourcing & Vendor Management Summit 2012 will take place September at the Gaylord Palms Resort and Convention Center in Orlando, FL. Be sure to bookmark and check back in the coming months for conference content details. 9

10 September Orlando, FL Thank you to our Gartner Outsourcing & Vendor Management Summit 2011 Sponsors Platinum Sponsors Country Pavilions Silver Sponsors Avanade, Inc. BancTec Beeline Blazent Capgemini EPAM Systems, Inc. Fundación ExportAR GrupoASSA HYTECH Consulting, Inc. igate Patni JAMAICA PROMOTIONS CORPORATION (JAMPRO) LogiGear Corporation Politec PROCOMER Costa Rica Foreign Trade Promotion Agency Redemtech Secure-24 Stefanini Tech Team Suzhou Municipal Government Tangoe, Inc. TATA Consultancy Services Uruguay XXI Kiosk Sponsor Catalyst IT Services Rural Sourcing Pavilion Sponsors CrossUSA Eagle Creek Software Services Onshore Technology Services Rural Sourcing, Inc. Media and Association Partners 10