TECH BUYER Aug 2019 - IDC Perspective - Doc # US45450019

New Outsourcing Environment Requires a New Procurement Approach — Agile Procurement

By: Dr. Ron BabinAdjunct Research Advisor

Abstract

This IDC Perspective recommends that senior technology procurement executives adopt the principles of Agile procurement to speed the procurement process, respond to customer requirements, and provide flexibility in a rapidly changing technology and business environment. Most organizations are using Agile methods to develop and deliver software applications. At the same time, the traditional procurement process, with long RFP cycles and detailed requirements, is recognized as too slow and unresponsive to the needs of rapid delivery of external digital services. The market for outsourced services has evolved from billion-dollar contracts with durations of 10+ years, to short contracts of smaller value, but with much more growth potential.

IDC Adjunct Analyst Ron Babin comments, "Agile has the potential to dramatically improve the procurement process, as it has already demonstrated in software development and operations. Rapid and flexible procurement is critical for organizations that rely on external service providers to deliver digital disruption in a highly competitive marketplace."


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