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"When you first start outsourcing IT services, what you’re most interested in is quickly establishing stability for those services. As a customer, you’re not much interested in innovation."

JONATHAN COOPER-BAGNALL,PA'S HEAD OF SHARED SERVICES AND OUTSOURCING

Procurement: Innovation is an important part of the deal

Jessica Twentyman
Financial Times
29 June 2011

PA Consulting Group is quoted in the Financial Times The Connected Business IT and outsourcing special report. PA gives its view on how outsourcing IT services help Chief Information Officers to juggle conflicting priorities of keeping costs low while increasing the business value of IT and keeping innovation on the agenda.

PA comments that although many companies’ definitions of innovation will differ in terms of final business outcomes, customers fail to spend time with prospective suppliers hammering out their terms on the subject before signing a deal.

PA says it is a question of focus: "If you think about it, when you first start outsourcing IT services, what you’re most interested in is quickly establishing stability for those services. As a customer, you’re not much interested in innovation, in doing new things, or in doing old things differently."

"What the provider learns from that is that your company isn’t interested in innovation. That misconception quickly starts to devalue the relationship between customer and supplier – unless there’s a concerted effort early on by the customer to address it."

You can read the article in full here.


For more information on how your organisation can think differently about shared services and outsourcing, click here or contact us now here.

   
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