Most IT directors want to build strategic relationships with
suppliers, but current arrangements are not living up to
expectations for both parties.
Over two thirds of businesses expect to spend more on
outsourced technology and services in 2009, according to a
survey of 40 CIOs and heads of procurement.
The report compiled by international legal firm Norton Rose said
IT leaders want procurement to be central to corporate
strategy.
A massive 83% of users said they wanted to build strategic
partnerships with their key technology suppliers, but suppliers and
users agree that
in reality their relationships often do not live up to
expectations.
Norton Rose lawyers questioned executives at businesses that
spend a total of £8bn annually on IT and outsourcing. Over a third
of these firms spend more than £100m a year individually.
Mike Rebeiro, partner and head of sourcing at Norton Rose, said
that if IT products and services are to meet business requirements
customers and suppliers must be open about their objectives.
"Customers and [suppliers] need to take a more considered
approach to identifying the risks associated with projects and a
more realistic approach to the allocation of risk between
themselves."
This is more pressing as the financial uncertainty arising from
the credit crunch is likely to lead to many outsourcing deals being
re-negotiated, reduced in scope or terminated in 2009,
warned international law firm Pinsent Masons in July.
Pinsent Masons also says that long-term transformation projects
may be delayed or terminated, in part because businesses will look
to short-term cost cutting rather than to longer-term benefits.