This is not new, but Gartner said today that firms ”focus too much on the operational level of outsourcing, and not enough on the strategic management of contracts.”
As I always say, “you can outsource the process but not the accountability!”
The article talks about aligning sourcing actions with business goals and the importance of the competencies of strategic sourcing. This is clear, you must focus on outcomes. You must get it right when you put the agreement in place or you will pay for it during delivery. It’s much more expensive to correct errors after you have let the contract.
Gartner research director Frank Ridder said “Many organisations struggle to develop an effective and efficient sourcing environment, which is necessary to achieve positive sourcing outcomes.” Effective contract lifecycle management systems like Open Windows Contracts pro-actively automate the sourcing process for organisations. They provide education on how the process should be performed, as well as accountability and auditability.