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Sourcing & Staffing

October has been a great month for ICT outsourcing contracts, with a wide range of agreement types, vendors and buyers representing different industries.  Particularly interesting is the high number of smaller providers establishing a real presence in the market.

Conclusion: Virtual teams continue to be an accepted organisation mode as a means of grouping specialist and project resources together to achieve high quality outcomes. Recent research1 identifies that more than 40% or Fortune 500 companies currently utilise virtual teaming. Smaller organisations have found that technology tools provide the mechanisms to collaborative cost effectively. A key activity of virtual teams is collaborating on research, projects and reports. Understanding the purpose of the collaborative authoring activity, the personality preferences of the authors and the relationship of the authors can enable organisations to increase the quality of the output with less effort and in less elapsed time.

New service contract agreements have been prominent the past month, particularly with the Department of Defence. The Department of Defence has traditionally engaged in high volume, high value, complex projects and does invest a lot in IT to support its critical functions.

Conclusion: Organisations are increasingly leveraging the services, skills and capabilities of third party organisations to deliver high quality IT services to their organisations. At the same time, there is industry recognition that contract management skills within organisations are often under par. Well managed relationships can result in significant returns for the organisation in terms of ROI and reduced management costs. Well planned arrangements with performance measurements represent sound management practices. Going beyond the basics to mature relationships and trust dividends is even better.

Conclusion: In most vendor-client relationships power shifts from the client to the vendor as soon as the deal is signed. As the SMACC (Social, Mobile, Analytics, Cloud and Consumerisation) ecosystem evolves, strategies are emerging that enable power to remain with the client for the duration of the vendor-client relationship. However, this shift in power will only happen if the client actively works to eliminate vendor lock-in strategies.

This month there has been a significant increase in senior appointments, restructures, collaboration and purchases in the ICT industry. In particular, service providers are acquiring or partnering with technology vendors to integrate specialised and high quality products with their services. This highlights the demand in the market for access to new and developing technologies and associated services to take advantage of them. In order to stay competitive, service providers have been forced to move beyond basic service provision and include technologies as part of their service offerings.

Conclusion: Unless the IT and HR management work together to implement information systems to enable them to hire, develop and record the skills of IT professionals, the organisation will probably not have the right people to meet the looming challenges of the digital age.

Conclusion: Organisations have been slowly and organically embracing virtual team management models over the past few years and there is every indication that this is the model of the future. Managing virtual teams and developing highly functional communities have been largely hit and miss. There are still many instances of dysfunctional teams exacerbated by the tyranny of distance. Systemically assessing the virtual distance within an organisation can provide insights and assist executive managers to develop and implement initiatives to significantly increase the effectiveness of virtual teams.

Discussions regarding unknowns that arise from multi-layered, hybrid and increasingly complex ICT environments have been prevalent this month. There is a recognition that, because of these variables, traditional tools and delivery models are often insufficient to ensure ICT environments function efficiently. Reviews indicate that difficulties can arise because of failures in the implementation of management and operational protocols as well as the critical tools needed to bind the many facets of an ICT environment together, to ensure operational effectiveness which all users can access and understand. For instance, user authentication systems that now require careful consideration and planning are often not feasible as they can require very specific expertise for just one small aspect of a large environment. IBRS Analyst James Turner will be discussing this particular issue in relation to authentication solutions, as well as potential response measures in a webinar to be held on July 31st.

Conclusion: Whilst surveys highlight a surplus of ICT professionals and managers, job recruiters are not convinced. They claim the many vacancies on their books for skilled ICT professionals indicate there is a shortfall. Ironically both claims are true and together demand a different management response.

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