Next Practice Outsourcing: Orchestrated Outsourcing

May 16, 2014

Trellis’ Katie Gove contributed a white paper on the future of outsourcing at KMD’s session “Next Practice Outsourcing” which was part of Børsen’s IT Value conference May 14 and 15. Eva Berneke, KMD’s CEO, lead the session and was joined by Nicolai Dragsted, Senior Consultant, Bird & Bird; Cristobal Alonso, Chief Transformation Officer (EMEA), Telenor; Peter Fusager, Økonomichef, Coop; Morten Haustrup, Underdirektør, IT Operations, ATP; and Per Kjersgaard Rasmussen, CIO, ATP.

The key trend which marks a fundamental shift from outsourcing and offshoring practices of the past is that companies are actively embracing a hybrid model that includes multi-sourcing, outsourcing, offshoring, near-shoring and on-shoring. As a CIO at an international food company put it “I want to be able to choose best-of-breed and I want to be able to bundle it with other options in the way that works best for my company.”

This move to hybrid models comes for several reasons. First, IT organizations are making qualitative choices about where to put their internal resources’ focus; the primary focus being those parts of the IT infrastructure and operation that are closest to the business. Second, the race for talent, particularly for 3rd level engineers, demands accessing talent despite their location or organizational relationship to the company. Third, there is a clear need to integrate volume and best practices both of which can often times be found outside of an organization. And fourth, in the public sector at least, projects are put out to tender so by definition, the organization must work with multiple providers.

Click here to download the white paper NEXT PRACTICE OUTSOURCING_Orchestrated Outsourcing-WP