Gartner Research

Improving IT Agility Through Adaptive Sourcing

Published: 13 February 2014

ID: G00259378

Analyst(s): Andy Rowsell-Jones , Claudio Da Rold , Linda Cohen

Summary

In a digital economy, IT agility is a given. However, traditional sourcing works against improvements and innovation, while uncoordinated business uses of IT cloud services further reduce IT agility. Adaptive sourcing of IT services is the practical alternative that addresses these shortcomings.

Table Of Contents
  • Key Question
  • Opportunities and Challenges
  • How this report will help

Foreword

Executive Summary

  • Adaptive sourcing of IT services improves agility
  • Adaptive sourcing echoes the business operating model
  • The success of adaptive sourcing rests on robust management practices

Adaptive Sourcing of IT Services Improves Agility

  • Digital business imposes new IT agility demands
  • Existing approaches to sourcing fail to deliver agility
  • Adaptive sourcing avoids traditional problems by taking a layered management approach
  • Determining which service fits into which adaptive-sourcing layer

Adaptive Sourcing Echoes the Business Operating Model

  • Enterprises use different patterns of adaptive sourcing
  • Business objectives determine the best decision-making style for adaptive sourcing
  • Deciding the appropriate pattern of adaptive sourcing

The Success of Adaptive Sourcing Rests on Robust Management Practices

  • Make required changes in IT management disciplines
  • Mitigate adverse organizational impacts
  • Keep layer classifications up to date
  • Recognize the model's shortcomings
  • Conclusion

Appendix: The three layers of adaptive sourcing; case studies

  • The three layers of adaptive sourcing
  • Innovate
  • Differentiate
  • Run
  • Outsourcing "everything" at 3A Composites
  • Assa Abloy evolves toward digital identity management
  • A new business model requires agile and responsive sourcing at Benetton Group
  • InsureCo's disciplined approach to sourcing
  • Traditional IT sourcing transforms to a business-outcome-based sourcing strategy at Medavie Blue Cross
  • Michelin solutions outsources for change
  • Changing the sourcing locus of control at the New South Wales Department of Finance and Services
  • Schneider Electric systematically improves sourcing flexibility
  • A new architecture and sourcing strategy for customer-driven services at Telenor Group
  • Using a three-layer sourcing strategy to develop an agile IT organization at TIM Brasil
  • Western Australia Police adopts a three-tiered service outcome model

Further Reading

  • Related content
  • Gartner Executive Programs reports
  • Core research

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.