Sourcing Monthly June 2019 – July 2019
Conclusion: This month, attention has been drawn to vendors and managed service providers requiring customer transformation or migration to new frameworks and associated customer reluctance to do so. For instance, platform enhancements may necessitate migration to new systems or upgrades because of an inability to support ageing systems. Old platforms may simply not be compatible with newer resources, technologies or procurement models. However, these types of enhancements can be disruptive or costly for customers if they are not prepared for changes. Further difficulties can arise with existence of intertwined, hybrid systems within enterprises or systems which perform critical functions if changes interfere with business operations. Simply removing the capacity to access ageing systems and associated support is not sufficient. Businesses must prepare in advance when investing in products and services, in conjunction with vendors. The development of strategies and sharing responsibility for forward planning, education and engagement, as well as support for shifts, are necessary. The provision of other resources or advice from vendors, or obtaining services from third-party specialists dedicated to transformation strategy development and implementations, can also be beneficial. Whilst vendors must evolve, customers must also be prepared to make these changes and understand what kind of impact it can have on their operations.