Last week, CAST attended the Gartner Sourcing Summit in Nashville with more than 800 senior sourcing, procurement and vendor management executives from Fortune 500 companies.
Check out our top takeaways from the show:
- Sourcing is at cross roads, having to react to massive changes and uncertainties brought about by new digital business initiatives, technology changes (Artificial Intelligence, IoT, Blockchain), new commercial models (Cloud, SaaS) and de-globalization (H1B visas, Brexit)
- Bi-modal sourcing is becoming the new norm. There is no one solution that supports bi-modal sourcing. Use automation to support and reduce administration for mode 1 (traditional) to enable focus on mode 2 (Agile, DevOps)
- AI will have a massive impact – cognitive procurement advisors and virtual procurement assistants are right around the corner
- 64% of sourcing and vendor managers expect the majority of application development services to be replaced with automation by 2018
- More organizations are thinking of business outcomes in contracting. This will take 8 – 14 months if doing for the first time but very much achievable and beneficial
- Lack of well documented baseline, absence of change mechanisms and misalignment of expectations have been the reason for more than 50% of outsourcing agreements being renegotiated pre-term
- Considerable benefits observed for having strategic vendors go through a formal vendor performance management program
For sourcing professionals looking to get the truth about the software being outsourced, discover how CAST provides meaningful insights that support confident decision making and vendor management strategies.