The 2018 edition of the Deloitte Global Outsourcing Survey highlights the emergence of new forms of outsourcing, such as cloud and automation. These new technological models are transforming companies as a whole and procurement departments in particular.
If there’s only one word to summarize The Deloitte Global Outsourcing Survey 2018, it’s definitely the term “disruptive”. It is cited more than 20 times throughout the study. And it’s not a coincidence: the 521 surveyed managers also used it extensively, according to P.Rassek, Deloitte partner in charge of outsourcing: “Organizations are looking for efficient and agile solutions that can adapt to their problems and changes,” he explains.
Cloud and automation
Companies are therefore increasingly opting for new technologies such as cloud and automation, which enable them to be agile. 84% of respondents say they have initiated discussions, conducted pilot projects or implemented at least some innovative solutions.
The vast majority of organizations (93%) are considering adopting cloud solutions and 72% are looking to roll out RPA (robotic process automation) solutions.
Purchases become more mature
Though investing in these new “disruptive” technologies requires a different approach of procurement. The managers interviewed are aware that purchasing must evolve. “Purchasing is very mature and very involved in the process. They also do not hesitate to favour the best bidder at the lowest price and pay for more efficient technologies,” answers Philippe Rassek.
Deloitte’s study shows that the selection process is changing: managers say they dedicate more time tendering or sourcing service providers (42%) as well as processing request for proposals more often (39%). Purchasing is indeed maturing.
Another development, pointed out by P. Rassek: “Managers no longer hesitate to buy change support services to ensure that digital transformation is properly monitored internally”.
Added value at each stage of outsourcing
Above all, one of the main lessons the Deloitte study is teaching us is the awareness of the added value that outsourcing can bring: the objective is no longer to reduce costs but to collaborate with partners to innovate, transform, stimulate growth and destabilize competitors.
New capacities must therefore emerge to buy properly. Procurement should no longer be limited to negotiating prices but should provide added value at each stage of outsourcing: choice of service providers, negotiation of flexible contracts, implementation of a robust governance programme, cyber security management, addressing regulatory issues or implementation of rigorous service integration.
To conduct this study, Deloitte surveyed 521 leaders of organizations of all sizes in the United states, Europe and Asia. These leaders belong to more than 25 sectors in six industries.