August 8, 2018

Smart sourcing is a way to take the best of all scenarios: onsite and offshore

Markku Luoma-aho

Director, Tieto Financial Services strategic sales and solutions, Tieto Financial Services

Once upon a time the question of onsite v. offshore was about costs. Expenses are still important – they are always important – but today a clever ICT sourcing strategy is about much more. It provides speed, flexibility, resource efficiency, renewing expertise and scalability when needed.

What I’m talking about is smart sourcing. “Smart” might be a buzzword, but here it is apt because it describes a cleverer way of utilising ICT resources.

They call it “smart” for a reason

Smart sourcing deals with who handles particular tasks, where the actions occur, and how it is done. It can be particularly important for financial services company in regards to where data is held and where work is performed, depending upon the task. On site work takes place where a customer bases their relevant ICT resources, while offshore work can happen anywhere in the world.

Generally, this is where costs come into play. For example, work in India would traditionally cost less than work in the Nordic region, so a company might offshore particular tasks. Yet costs are not only determined by where the work is completed. Public tender processes keep delivery prices on a market level, but mismatched solutions will add unnecessary expenses.

Smart sourcing better matches solutions so the right work is done by the right people in the right place. It can be a mix of in-house and partners, depending upon the need. You can select several vendors and even combine several tailor-made applications. Thus, smart sourcing is very flexible.

There are other benefits as well. When done properly business development is faster, more innovative, more efficient, and can have a bigger positive impact on your bottom line.

Get a partner who knows the path

Smart sourcing has its challenges. You need strong leadership and management to provide direction. Picking the wrong partners can lead to heavy investment costs, missed deadlines and more frustrations than you can count. Moreover, it doesn’t fit all projects. You need a partner who can help you navigate this minefield because they have walked through it time and time again.

Tieto has utilised smart sourcing before it was even called by its current name. We have extensive cross-industry experience and local teams all over Europe and Asia with wide ranges of expertise. With over 14,000 experts in almost 20 countries Tieto has the muscle to make things happen. We have been doing this a long time and can help you identify and implement the best solutions for your company and your situation.

In continuous services you need strong partnerships with vendors you trust, people who can guarantee business continuity. Continuous services by Tieto is not simply IT support; it is full stack business continuity and improvement services. Here it is possible to use service-based sourcing.

Take the next step

Smart sourcing has its challenges, but with the right partners you can increase innovation, boost efficiency, speed up development and increase flexibility. If you would like to learn more about how Tieto can help you with smart sourcing, please contact me to set up an appointment.

You can also find my thoughts on other important topics here. We have been doing this for a long time, but we are constantly working to earn your trust.

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