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Top Sourcing Predictions for 2014

by: Sarah Joson

Tuesday, December 24, 2013 |

Top Sourcing Trends of 2014

Several factors are expected to shape the sourcing landscape as clients and providers prepare for 2014. Info.ISG-One.com shares in an article that with the persistence of fundamental change between clients and service providers, the structure and management style of sourcing contracts will also evolve. Some of the changes involve a sterner policy on cost and service integration, and the use of cloud technology.

Key market sectors are also expected to take center stage next year, especially now that providers are looking for more opportunities and growth.

Below are the five key trends highlighted in ISG’s survey:
All eyes are on the profit margin. Business owners are now more concerned in improving the potential of an operation rather than maximizing their deal size. This will result to a collaborative partnership between buyers and providers where buyers receive a higher level of efficiency and the providers get more deals no matter how big or small across a wider market. SMAC technologies or social media, mobility, analytics, and cloud will also force partnerships to transform processes.    

Being transparent in costs is vital now more than ever.
Buyers are now more detail-oriented where they are seen looking at how an IT expenditure will cascade to the entire IT operation. For businesses that are considering transforming their operations, one of the vital steps they take is aligning IT operations and IT finances. They have to make sure that they’ve got the best deal for their budget and that all of the expenditures are accounted for.

Experimentation period is over. 
Most businesses that are looking to outsource IT processes are now more experienced and aware of what to do, which delivery model they should use, and which processes to outsource. Furthermore, they are now keen on reinforcing internal systems first before integrating new methods.

Cloud computing will be more defined. Business owners still struggle with how they are going to measure a cloud-integrated process’ success and how it can be maximized to improve all of the company’s systems. Next year, enterprises that make use of the cloud technology are expected to come up with better monitoring and tracking systems, as well as an overall approach for the use of the cloud.

Healthcare reform in the US opens a window of opportunity.
Since the US is leaning towards a bundled-payment setup for healthcare delivery fees, the processing of a patient’s files and insurance information is expected to bog down on the flow of a medical facility’s cash flow. Providers are expected to take this as a new opportunity, one where they can expand service offerings and move up to high-valued services.

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