The role of the IT function is changing fast. Disruptive developments in Cloud, (Software) As a Service, Robotisation, DevOps and Agile working demand a ‘different approach’. This is also having an impact on the form of Sourcing of ICT products and services and other business processes. How does the IT function remain customer focused and flexible whilst also being competitive?
Sourcing is about the way in which companies make choices about how they work with market participants, chain partners and joint ventures. Which activities does the company perform itself, which capabilities does that require, and which services does it source from the market? As a business, how do you work effectively within an ecosystem of suppliers, and in certain domains within composite teams? In that kind of situation, how do you assure service integration and end-to-end chains?
The Digital Sourcing team will support you in defining or recalibrating your IT Sourcing Strategy, supporting (Agile) selection pathways, contracting and supporting the transition and transformation projects. Part of that is drawing up a solid business case that reflects both the quantitative and qualitative aspects. In order to determine whether the entire business case can be delivered and whether all the potential value can be obtained from the contract, we regularly perform contract value checks and IT Benchmark studies. Implementation and management are crucial to the success and sustainability of the solution: for this reason, we provide support in configuring next generation operating models for ICT – and the IV functions.
Five Digital Sourcing pillars
Thanks to our market knowledge and insight into the latest developments, we are capable of offering the appropriate and future-proof Sourcing solutions. For us, outsourcing evolved into Sourcing years ago: the right activities in the best place, entrusted to and managed by an effective internal organisation, close to the operational business. To support your company.
1) Digital Sourcing Strategy
We help our customers define a suitable Sourcing Strategy and put together a suitable ecosystem of partners. Selecting the right systems, platforms and partners is key. A Sourcing strategy answers the question “How” a company can effectively and efficiently configure a business domain such as IT, HR or Finances by making a conscious – and considered – choice as to which activities to implement independently (“do it yourself”), which activities to outsource to the market (“purchase”) and/or other forms of cooperation (“collaboration”) – all the while taking account of the objectives, conditions and principles defined by the company.
In addition, we will assist you in formulating requirements, Sourcing scenario analyses, supplier models, business cases, risks and consequences for the business and implementation roadmaps.
2) Governance of Digital Ecosystems
Defining governance models for digital ecosystems so that our customers can successfully operate in a multi-vendor, platform & partner ecosystem. This involves defining relevant archetypes, identifying different roles, describing the way of working between client and vendors/partners (Agile, DevOps, integrated teams) and creating models for future-proof performance management.
3) Digital Selection and Contracting
KPMG offers firms support with a variety of selection and contract support services in areas including Managed Services, package, platform and SaaS selections and transformation services. Based on our years of experience, we can support you in drawing up supplier selection strategies, identifying requirements and drawing up specification documents, facilitating market consultations and Proof of Concept sessions, negotiation and contracting. Depending on the requirement, we are capable of configuring the selection and contracting in the most suitable way: Functional, Vested, BVP, Agile or SAFE. Based on our Good Industry Practices, we supply templates and market experiences in order to accelerate the process. KPMG is capable of facilitating the entire process or supporting it in an external quality role with targeted reviews.
4) Transition and Digital Transformation
Based on our experience and expertise, we will support you with the supervision of Managed Services, package, platform and SaaS implementation/migrations. We also support digital transformations in order to make the IT function future-proof. As with digital Selection and Contracting support, KPMG is capable of facilitating the entire process or supporting it in an external quality role with targeted reviews.
Getting the most from the implemented digital ecosystem and hence your relationships with partners and suppliers. Ultimately, that is what it is all about. KPMG supports you with:
- Partner relationship check. Increasing value in sourcing relationships. Cataloguing contractual arrangements, expectations and perceptions in long-term Sourcing agreements, putting them on the table for discussion and optimising the relationships between contractual parties.
- Contract Assessment. Shedding light on whether the contract is in line with market conditions and future-proof. Based on our good industry practices, we compare the formulation of the existing contract and provide targeted advice in order to improve Service Structure, SLAs, procedures, etc.
- Benchmarking. Evaluating the contract to make sure it is in line with market conditions. In a benchmark study, we compare the financial and/or qualitative structure of the services against the market. Based on the results, we provide targeted advice in order to improve the agreed arrangements.
- Governance. Advice on structure, scope and required profiles. We analyse the structure of the current organisation and provide targeted advice on the required structure, scope and profiles in relation to the Sourcing relationship(s).