Welcome!

News Feed Item

Getting the Desired Business Outcomes from IT Service Providers



Abaran Deep of PCI Group Pty Limited, a sponsor company at the marcus evans Australian CIO Summit 2014, on vendor selection and getting the desired business outcomes from IT contracts.

LONDON, June 16, 2014 - (ACN Newswire) - The best way to manage risk and achieve the desired outcomes in a large outsourced Information Technology (IT) project is to establish a collaborative contracting framework with the vendor, says Abaran Deep, Partner, PCI Group Pty Limited. A collaborative contracting framework ensures risks and rewards are shared and a positive psychological foundation is laid. Where this is not the case, as with most traditional contracts, there is a high probability that the project will not deliver its business goals.

PCI Group Pty Limited is a sponsor company at the marcus evans 13th Annual CIO Summit taking place in the Gold Coast, Queensland, Australia, 28 - 30 July 2014.

- What should Chief Information Officers (CIOs) do to ensure that they get the desired business outcomes from their IT service providers?

Large outsourced IT projects have a high degree of risk or uncertainty. For such projects the CIO should avoid traditional commercial frameworks with a fixed contract price or a schedule of rates. Traditional approaches are counter-productive - they tie up a lot of time and energy in specifying all the details early on to put a fixed price on a fixed scope. Vendors are better at playing that game than clients and always find grounds for scope variation.

Instead CIOs can ensure the success of their IT projects by focussing on three areas: develop the right technical contract (clarify project outcomes in terms of business objectives); develop an appropriate commercial contract (link vendor profits to achievement of customer's objectives); and establish a sound human contract (foster collaborative behaviours and effective leadership).

- How should CIOs engage their vendors to ensure project success?

Large and complex projects need vendor and client teams to work together collaboratively. This requires CIOs to understand the psychology of the contract that they use to engage a vendor. In our recently published thought leadership paper, "An overview of collaborative contracting: Making collaboration effective and choosing the right framework", we contend that more often than not, the procurement relationship is based on a win/lose paradigm where client organisations end up paying vendors to do the wrong things.

Specifically, in most complex projects that under-performed we have found that the commercial framework drove a win/lose outcome where - if difficulties arise - one party wins at the other's expense.

Furthermore, the vendor selection process must place equal importance on the quality of people and leadership of the vendor team to ensure that the client gets people with the right values, skills, and competencies to join the project. Thus, the selection process must not be based solely on the "hard" technical competencies, but also the "soft" leadership and teamwork competencies that affect motivation and performance.

- Selection and procurement are front-end activities but what happens in the rest of the life of an IT project?

At PCI, our experience shows that the conduct of the selection process establishes the DNA for the project culture. Therefore it must be conducted in a way that establishes the foundations for a positive working relationship, one that is able to stand the stresses and strains of complex project delivery over time. Hence, vendor selection and contract establishment must address technical, commercial, and human dimensions.

Once the contract is established, investment is needed to integrate client and vendor people and coach them to become a high performing team - this does not happen by accident. This investment is necessary to cement the "your success is my success" mindset enabled by the collaborative contracting framework.

More importantly, the project team needs the change management capabilities to skilfully engage the multitude of stakeholders and enrol their support for business changes required for successful IT implementation. Change management is a critical and inherent aspect of large IT projects and the project team needs to be given skills and capabilities to work alongside the business to support the implementation needs throughout life of project.

About the Australian CIO Summit 2014

The Australian CIO Summit is the premium forum bringing elite buyers and sellers together. As an invitation-only event taking place behind closed doors, the summit offers enterprise and government chief information officers and IT solution providers an intimate environment for a focused discussion of key drivers for IT innovation. This unique forum will take place at the newly-renovated RACV Royal Pines Resort, Gold Coast, Queensland, 28 - 30 July 2014. The Summit features presentations on implementing the right cloud model, crafting simple and powerful mobile solutions, streamlining processes and living up to shifting realities for the IT leader.

For more information please send an email to [email protected] or visit the event website at www.australianciosummit.com/AbaranDeepInterview

marcus evans group - information technology sector portal
www.marcusevans.com/reviews/technology/index.asp

The Information Technology Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.

- LinkedIn: www.linkedin.com/groups?gid=3568575&trk=hb_side_g
- YouTube: www.youtube.com/MarcusEvansIT
- Twitter: www.twitter.com/meSummitsIT
- SlideShare: www.slideshare.net/MarcusEvansIT

Please note that the Summit is a closed business event and the number of participants strictly limited.

About PCI Group Pty Limited

PCI is acknowledged as a leading advisor, facilitator and coach for the establishment and delivery of collaborative contracts for complex projects and programs. PCI works with client organisations on complex procurements to create an environment in which suppliers and customer objectives are aligned ('win or lose together') and in which team members from all parties can work together in truly integrated teams which perform at very high levels. Please visit www.pcigroup.com.au.

About marcus evans Summits

marcus evans Summits are high level business forums for the world's leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com.

- Twitter: www.twitter.com/meSummitsGlobal
- YouTube: www.youtube.com/user/MarcusEvansGroup
- SlideShare: www.slideshare.net/MarcusEvansSummits

Source: marcus evans Summits

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: +357 22 849 313
Email: [email protected]




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...