The sourcing and vendor management (SVM) field is said to be in the midst of transformation because of the consumerization of IT, users' demand for new technologies and strategic partnerships. To remain relevant, SVM professionals are going to have to adjust to these forces and modify their own agenda, advises Forrester Research analyst Paul Warren.

Forrester has found that about one-third of workers who use computers for their job are self-provisioning their technology tools, which means that they don't need SVM to procure their technologies. Business units on the cutting edge are also working directly with suppliers to develop strategic partnerships in which the supplier brings value creation, again eliminating the need for an SVM middleman. In a similar way, business units are pressing for new technologies like cloud services without the assistance of the IT department, Warren writes in a post at CIO magazine. 

None of this means that SVM professional have to fade into the sunset, however, Warren writes. Significant new risks are introduced as business units self-provision and negotiate their own relationships with suppliers, and SVM pros can play a role in mitigating those risks. Rather than merely "executing sourcing events," SVM needs to develop a governance role in which it sets standards, and then monitors and helps enforce compliance.

As enterprises seek to establish outcome-based partnerships with suppliers, they need to develop skills around "co-creation and strategic sharing," Warren writes. "The skills needed to save another 3% on your Microsoft contract is much different than the skills required to work with a partner to drive improved customer retention rates or increased product sales," he writes.

Finally, Warren recommends that SVM pros get ahead of the business units by taking on a thought leadership role. To avoid being viewed as a barrier to progress--and avoid being called in after a vendor is already chosen--they should bring new ideas to the business. "Proactive market surveillance, competitive intelligence and working with partners to develop innovation ideas will move SVM into a consultative, advisor role to the business and away from sourcing executer and SLA overseer," he advises.

For more:
- see Paul Warren's post at CIO

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