IAOP Nordic Chapter’s Network Meeting

September 19, 2014

The IAOP’s Nordic Chapter held its quarterly network meeting earlier this week at Deloitte’s offices in Copenhagen.

Per Lund Pedersen, Partner, kicked off the program with a look at some of the results from  Deloitte Tech Trends 2014 study. Foremost among the interesting results are what Deloitte characterizes as the “disruptors” and the “enablers.” Some of the disruptors Per noted were the CIO as venture capitalist, cognitive analytics (a.k.a. Big Data), industrialized crowd-sourcing, and wearables. Among the enablers, Per listed social activation, Cloud orchestration, in-memory revolution, and real-time DevOps automation.

Per also shared with us some highlights from Deloitte’s 2014 Outsourcing and Insourcing report, Chief among the results is the substantial challenge shifting outsourcing from its current reactive “default” setting. Respondents in the study complained of poor service quality and a lack of innovation in their outsourcing engagements. However, these same respondents said that their own organizations are doing relatively little to build a more robust vendor management capability that would not only be able to manage their substantial investment but would also be able to deliver value-oriented results.

Picking up on this point, Per’s colleagues, Christian Bastholm and Bo Rosenlund, took a look at vendor management and sourcing governance. Bo noted that today’s governance is highly dependent upon individuals, silo-driven, and ineffective at issue resolution. Instead of focusing on impact and commercial value, managing outsourcing is focused on incidents and SLA’s.  It is utterly critical that organizations address this gaping need. Organizations are typically allocating 60-70% of their entire IT budgets towards outsourcing yet very few are investing anything in proper vendor management to support this substantial investment.

Our group of roughly 30 then engaged in a robust discussion about how to move organizations towards more value-focused vendor management. With representation from IBM, LEGO, CSC, Carlsberg, Implement and more, we had perspective from buyers, suppliers and advisors.

Our next IAOP Nordic Chapter meeting is November 12 and will be held at ISS in Søborg. For more details, click here.