Outcome Sourcing - Buying results rather than services
In his interview with DNA India magazine, Chandrashekhar Kakal, SVP and Head of the Business IT Services unit at Infosys, talks about the rise of outcome based sourcing as opposed to the traditional mode of 'outsourcing'. Traditional IT outsourcing has been focused on cutting input costs with the buyer seeking to offload repetitive activities to a third party. However, organizations today are already looking at the next big thing.
As enteprises continue to spend majority of their budgets on running and maintaining the IT infrastructure, they need to look at new ways to innovate and transform the business such that it leads to growth.
Outcome sourcing allows organizations to buy results that matter to business growth rather than just focus on reducing the input costs. So, they look for "strategic partners" who can be entrusted with the end to end management of business applications and processes, as opposed to suppliers or vendors. As the emphasis moves towards delivering results that matter to the client, outcome sourcing can foster innovation and a closer alignment of a vendor's incentives with business requirements.
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