Gartner Research

Exploit Application Service Trends in Your Sourcing Strategy to Improve Innovation and Optimize Delivery

Published: 23 March 2016

ID: G00300232

Analyst(s): Neil Barton , Gilbert van der Heiden , Daniel Barros , Frances Karamouzis , Jim Longwood

Summary

Digital business growth is triggering higher demand for agility, innovation and improved user experience from business, resulting in opportunities to exploit new sourcing models. Sourcing executives must take advantage of the latest trends in application services to meet business expectations.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Monolithic enterprise software suites have inhibited organizations' ability to react quickly to digital business needs, requiring sourcing executives to find ways to evolve their ERP capability
  • The need for speed in delivering applications is driving sourcing executives to consider a new wave of extensible software as a service (eSaaS) offerings, demanding an innovative contracting approach while reducing risk
  • Flat or decreasing IT budgets are motivating service providers to offer a new range of smart-machine-enabled services, which sourcing executives need to incorporate into their innovation plan to reduce cost
  • The demand for improved customer experience is expediting adoption of agile and DevOps methodologies, which encourage colocation of teams, creating challenges for sourcing executives when sourcing labor from offshore

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