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May 22, 2015

CIOs urged to enhance sourcing strategies

Adaptive sourcing boosts IT agility.

By CBR Staff Writer

Adaptive sourcing can deliver better agility for a bimodal organisation when compared to homogenous traditional approaches, according to Gartner.

The research firm said a bimodal organisation requires an adaptive approach to sourcing in order to meet the needs of traditional and non-sequential IT modes.

Traditional mode focuses on safety and accuracy, while non-sequential mode emphasises agility and speed.

Organisations are forced to focus on fast and collaborative innovation due to the new opportunities and threats of the digital economy, with CIOs required to enhance their sourcing strategy.

An adaptive sourcing approach will allow CIOs to rationally apply several governance rules to IT services in each layer, without consideration of the buying centre requesting the services.

The three-layer model used in adaptive sourcing includes innovate, differentiate and run.

Gartner research vice president Ruby Jivan said: "Adaptive sourcing affects operating practices at many levels, so CIOs who anticipate the effects are more likely to succeed.

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"The success of adaptive sourcing rests on the agility of the sourcing and vendor management organization to embrace robust management practices."

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