Evolving Your IT Sourcing Model

Recognizing Warning Signs in IT Sourcing

Outdated sourcing models reveal critical warning signs, such as rising costs, delayed adoption of emerging technologies, and misaligned goals. These signals often lead to inefficiencies that limit business potential and increase operational risks. Recognizing the gaps in your sourcing model is the first step toward meaningful change. Addressing these gaps positions companies to meet future challenges effectively.

Case Study: Driving Transformative Value at a Global Energy Leader

One of our clients, a global energy company, partnered with Wavestone to overhaul its digital skills sourcing. Through a series of Agile and Lean workshops, the company achieved a 33% rate reduction across suppliers while tripling engagement from service providers. This new approach empowered them to quickly adapt to industry changes and maintain competitiveness in an evolving market.

This involved leveraging Wavestone’s role as independent consultants to coordinate with various suppliers and facilitate joint workshops, collaborating to develop the RFI and RFP. Additionally, it required working with sensitive procurement data to design a reusable commercial model for evaluating vendor proposals. This model is now helping the client to:

• Accurately assess the value offered by different suppliers
• Reach transparent, objective sourcing decisions
• Achieve stakeholder consensus at all levels

Focused on Collaboration

Wavestone collaborated with the client to develop a flexible, modular contract framework. This approach enables the company to work with a select number of suppliers and quickly access new skills with minimal need for renegotiation. As a result, procurement productivity has improved, and the pace of developing new digital services has accelerated, including leveraging more innovative methods to continually integrate emerging technologies. This approach is also delivering substantial commercial benefits, including enhanced sourcing speed and flexibility and notably reduced costs, like:

• A 33% reduction in supplier rates
• $20 million+ opportunity based on projected work
• Supplier response rates three times faster
• A streamlined micro-tendering process that cuts supplier response times for new work from one month to ten days

How Wavestone Supports Sourcing Transformation

We collaborate with clients at every sourcing stage, from strategy to execution and management. By leveraging data-driven insights and cross-functional expertise, we help organizations build adaptable sourcing models that drive measurable results.

For instance, one client achieved a 40% faster project turnaround with our guidance, streamlining processes and reducing redundancies. Our team’s emphasis on strategic alignment and innovative solutions enables businesses to capture immediate and lasting benefits.

Key Outcomes:

• Up to 30% cost savings with modernized sourcing strategies
• 33% improvement in project ROI among organizations embracing comprehensive IT sourcing
• 75% of companies recognize enhanced IT sourcing as a direct contributor to innovation
• 40% faster project completion with streamlined sourcing approaches

How will we help your organization?

Wavestone provides expert support at every stage of the sourcing lifecycle. In the strategy phase, we assess the effectiveness and value of the current supply chain, comparing it to potential gains from alternative sources. This analysis helps us create a roadmap for change, including initial business cases.

During implementation, we deploy skilled resources, tools, and methodologies to select an optimal supplier landscape that aligns with business strategy and adds value, such as improved service levels. Wavestone assists clients in developing and implementing top-tier contracts aimed at maximizing benefits. We support clients through negotiation and due diligence, guiding them into live operation to ensure anticipated business returns are achieved.