For Eraneos I’ve co-written an article about the hidden innovation power of IT partners. Here in we also posited a new way to shape collaborations between various parties. This service of shaping said collaborations (partnerships) is what we also offered to our customers.
This article is published on the Eraneos website: Gebruik de innovatiekracht van IT service provider
Archived and translated version of the article:
IT service providers can be a source of innovation. They can help organizations optimize their IT landscape and make it more resilient. However, organizations are using the innovation power of IT service providers less and less. This is shown by the annual research by Eraneos in cooperation with Whitelane. The result: the innovative potential of IT partners is not used enough, so organizations miss valuable opportunities. This article explains why this happens and how an organization can still make use of that innovation power.
More than ever, service providers are seen mainly as suppliers who deliver requested services at the lowest possible cost. As a result, digital transformation—and the growth that comes with it—is often overlooked. This approach does not do justice to the potential and value IT service providers can offer. This article explains how we advise organizations to get the most out of the innovation power in their ecosystem, and how this can help an organization stand out and strengthen its market position.
Working with IT service providers to gain a different perspective
Research by Eraneos and Whitelane shows that 44% of Dutch organizations plan to outsource more IT activities. Another 35% say they will outsource the same amount over the next two years. The main reasons are: being able to focus on core tasks, responding flexibly to business requests, getting access to scarce resources, and improving the quality of (IT) services.
Eraneos & Whitelane IT Sourcing Research 2023
Each year, Eraneos and Whitelane conduct a survey among customers and IT suppliers. The research focuses specifically on the relationship between IT suppliers and their customers. In the 2023 study, more than 200 customers, 24 IT service providers, and 12 cloud providers participated.
In previous years, innovative IT services were also a key reason to outsource. This year, only 32% of respondents mentioned it as an important reason. This is a notable shift, because we see innovation as a valuable reason to outsource (more) services.
Less room for innovation initiatives from IT service providers
Our research shows that many organizations fall back on the traditional “client–contractor” relationship. In that situation, the innovation power of IT services becomes less important, or even unwanted. Still, most organizations say innovation is very important. Many want to become more agile, improve the quality of (IT) services, and continuously differentiate themselves from others. That requires collaboration and innovative service delivery—especially from the IT supplier.
However, the research also shows that outsourcing organizations often only want to “innovate” with IT service providers in order to reduce costs. This leaves IT service providers with little room to enable other forms of digital transformation. It creates a vicious cycle where the focus is only on delivering services within the agreed price and specifications. IT service providers are no longer involved—or hardly involved—in helping or speeding up new business initiatives that result from digital transformation. With this development, outsourcing organizations leave a potential source of renewal unused.
Figure 1: From a classic customer–supplier relationship to a reciprocal partnership
Get started with your own suppliers
When building these kinds of partnerships, it is crucial to bring together a group of organizations that are not only willing, but also prepared to understand each other’s situation. This allows them to work together on unique solutions that create value for both sides and strengthen the ecosystem. Below are the first five steps for forming a new type of collaboration:
- Focus on partners who approach value creation, implementation, and quality in a similar way. This makes it easier to arrive at a good joint solution, without rigidly sticking to pre-set conditions.
- Also check whether your own organization is suitable to be a fair, equal, or even initiating partner.
- Be open and transparent about the purpose: finding shared interests and the ultimate goal of the collaboration.
- Build the foundation of the partnership around joint growth, with attention to the relationship, shared values, and aligned goals. This enables not only the development of new value streams, but also the re-evaluation of existing ones.
- Choose partners with knowledge and experience in your industry, so they can provide the right tools and resources for agility and sustainable growth.
- Involve ecosystem partners in digital transformations, not only for cost reasons. Collaboration should focus on effectiveness; efficiency usually follows.
To increase innovation within the organization, it is important to understand the surrounding ecosystem and its innovation power. We support organizations with outsourcing IT services and building partnerships. We help create new value so organizations can differentiate themselves. We recognize the potential of IT service providers. This increases an organization’s agility and makes it easier to position itself successfully in a constantly changing world.
Get started!
After reading this, you may be curious about the hidden talents of the partners in your ecosystem. You may also feel the urge to empower your IT partners in a new, sustainable way, so they can contribute to better and more innovative solutions. In that case, a conversation with us is the next logical step. We are ready to facilitate an introductory session with your stakeholders, including an inspiring brainstorm to explore the possibilities.