With digital transformation all but mandatory across industries today, that innovation imperative is impacting every part of IT, including its outsourcing engagements. However, many CIOs are struggling to integrate third-party IT services deals into their long-term business strategies. Indeed, a recent Everest Group survey found that 61 percent of enterprises pursuing digital transformation were dissatisfied with their service providers.
This may be because there is a disconnect between traditional outsourcing approaches and exponential change. “While outsourcing in the past has had a laser focus on efficiency and costs, digital transformation is trying to deliver something different or new for the business as a whole to help them better compete,” says John DiCarlo, managing director for business transformation and outsourcing advisory firm Pace Harmon. Seemingly every IT service provider has rebranded itself as a digital transformation partner, but “little has changed in their approaches and offerings,” says Phil Fersht, founder of outsourcing consultancy and research firm HfS Research.
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