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KPMG:s Shared Services and Outsourcing Advisory (SSOA) has created the 2021 Digital Sourcing Trend Radar from first-hand field experience, working with clients and service providers around the globe.

Here you’ll find the latest views on the rapidly-evolving digital sourcing marketplace, as well as a holistic overview of the most important and impactful IT sourcing trends for the upcoming years. The report highlights twenty digital sourcing trends, where the most important short-term digital sourcing trends are described as:

  • Best of Breed Sourcing Strategies – Clients need to adopt, integrate and migrate new IT solutions and digital services faster than ever before and we see clients moving away from “one size fits all” delivery models.
  • Relational Outsourcing Agreements – Clients are ‘differentiating’ their type of relationship based on the nature of the service delivery, moving away from Statements of Work (SOWs) towards Statements of Outcome (SOOs).
  • Insourcing of integration function – Clients have begun developing integration capabilities inhouse as a result of the shift towards Best of Breed sourcing strategies, fast-paced changes in technology and the use of different cloud solutions.
  • Agile based tendering approach – A growing trend where the selection process follows a planning of sprints with predefined deliverables and selection criteria with more touch points allowing to select promising vendor(s) earlier in the process and also provides relevant insights into the cultural fit between parties.
  • Hybrid Sourcing Models – While public and private based As-a-Service delivery models clearly provide tangible benefits, the majority of organizations do require a mix of dedicated IT solutions and cloud-based services for the foreseeable future.
  • Ecosystem based partner models – The increasing digitalization of the client value chains results in an increasing amount of (inter)dependencies between client, digital solutions and respective service providers. We witness client organizations setting up ‘partner ecosystems’ to facilitate a more effective management of these (inter)dependent and complementary capabilities.

Our overview provides you with insights to help you take on digital sourcing challenges confidently. Depending on your current position, some trends may already be knocking on your door, while others require your organization to keep vigilant watch. Nevertheless, to discuss these trends in more detail or explore how KPMG Sweden can support your organization, we encourage you to contact any of our local sourcing experts listed in the publication.