Discuss, debate and exchange ideas on latest trends and opportunities in the Business Process Management (BPM) landscape. Deliberate on adding “business value” to clients, vendors, employees and various other stakeholders to enhance customer satisfaction and sustain long term partnerships.


June 3, 2011

Infosys Takes Sourcing & Procurement Engagements to Next Level with Joint Innovation Board

Today as procurement outsourcing matures, buyers are looking to their providers to create additional value. But there is a need for clearly distinguishing between the value proposition for Sourcing and that for Procurement. Buyers can realize benefits from procurement outsourcing very quickly due to labor arbitrage because of the transactional nature of the activities. However because of its more strategic nature, it is on the sourcing side that a provider's technology tools, business transformation, and process innovation can have a multiplier effect in increasing value for the buyer. Clients are realizing this and we are seeing several major trends. Clients are asking for business-outcome based relationships, they are asking for help in transforming their businesses, and the nature of work that they outsource is also becoming more complex, requiring more expertise.

We are also seeing that clients often go beyond their initial contracts and sign up for long-haul transformation roadmaps when they begin to gain confidence in our expertise. As the relationship matures we also gain confidence that clients will invest over the long term. This confidence building happens faster when the relationship has visibility and support at senior management levels on both sides. Once clients are comfortable asking us to deliver more value, we move on to setting up a dedicated innovation program - a procurement innovation board - with dedicated resources to drive transformation and innovation. This typically happens in large strategic engagements and here the innovation board prioritizes ideas and helps secure funding to implement them. For clients with smaller engagements we offer a lot of flexibility and help them experiment and gain confidence to grow into larger engagements. 

In a recent chat with Kathleen Goolsby (Editor of Outsourcing Buzz), my colleague Srikrishna (Kris) Koneru and I, spoke about these recent trends in the Sourcing & Procurement space and how mature client engagement can drive larger more transformational deals. Click here to read the interview.

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