New Report on Top 5 Trends Driving Outsourcing Value Optimization in 2018 Released at IAOP’s Outsourcing World Summit
Report Published by SirionLabs and The Shelby Group outlines trends reshaping the future of outsourcing
February 20th, 2018, Orlando, Florida: Released at the leading annual industry event Outsourcing World Summit 2018 by International Association of Outsourcing Professionals (IAOP), the exclusive report published by SirionLabs and The Shelby Group identifies the Top 5 Trends Driving Outsourcing Value Optimization in 2018. The report predicts that technology integration across functional silos, predictive analytics and the shift from traditional contract management platforms to performance focused systems are some of the drivers for how outsourcing services will be delivered and consumed in 2018.
The report outlines five key trends in the outsourcing ecosystem to address new challenges emerging from the shift towards services procurement that has surged ahead of goods and is now estimated by Forrester at 58% of the total procurement spend. The unrealized value in complex services engagements, estimated at 15-20% of ACV, represents a significant challenge for both outsourcing customers and suppliers.
Top 5 trends for driving outsourcing value optimization:
- Role of Contract Lifecycle Management systems expands from managing contracts to managing performance. Trend cites that there is a clear departure from a narrow contract management focus to a broader view that combines contract, performance, financial, relationship and risk management.
- Technology integration will drive outsourcing performance. An integrated view of outsourcing engagements by connecting functional silos will remove the inefficiencies and enable holistic management of outsourcing engagements.
- A single source of truth between the customer and their outsourcing suppliers. A common data platform will increase alignment and shift the focus to performance instead of validation of data.
- Technology will drive rapid adoption of SIAM (Service Integration and Management). Technologies available today will facilitate the rapid adoption for SIAM as a framework with growing number of suppliers involved in delivering an end-to-end service (e.g. ADM, Hosting, Telecom).
- Predictive analytics will enable real time interventions for optimizing outsourcing value. Enterprises will leverage comprehensive dashboards powered by advanced analytics to track and monitor outsourcing performance on a real-time basis.
Commenting on the trends, Ajay Agrawal, Chairman of SirionLabs said, “These trends will play a positive role in enhancing value realization for both sides in outsourcing. We feel that the rapid emergence of innovative and more powerful technologies in the procurement space is fueling these trends. In line with this, we are going to see Blockchain play a pivotal role in transforming how outsourcing is managed through its distributed ledger architecture creating a single source of truth between outsourcing customers and suppliers.”
“We are delighted to collaborate with SirionLabs to publish our latest report on industry trends at the most important event for the outsourcing community”, said John Dreyer, CEO of The Shelby Group. “Over the years we have been tracking the changes that have shaped the outsourcing industry, from macro trends like the global shift in labor markets to cross-sourcing across multiple suppliers and geographies. This year, technology is at the heart of the trends driving outsourcing value optimization.”
Read the complete report here.
SirionLabs is transforming the contracting engagement between enterprises by leveraging blockchain technology to bring contracting parties closer together across the full lifecycle of the contract – from authoring to performance to closure. Sirion’s award winning platform serves as a single source of truth for both parties across all key disciplines – contracts, performance, financial, risk and relationship management.
This collaborative and holistic approach materially reduces the friction between both parties, improving transparency and trust, driving tangible value equivalent to 10% of ACV while reducing the cost of governance by 45%.
About The Shelby Group
The Shelby Group is a SirionLabs-Certified Implementation Partner. We help companies maximize their return on investment in supplier governance with expert support for the business process, technical and change management functions that are critical to success.
Shelby is the global leader in platform-enabled procurement optimization. With hundreds of platform implementation and support engagements to our credit, we can help accelerate your success through each step of your journey with Platform Implementation, Program Optimization and Procurement Operations solutions.
To learn more, visit www.theshelbygroup.com.