However, 70% of digital transformation initiatives/projects globally fail annually. This is according to the WCC (World Commerce & Contracting) (World Commerce & Contracting) organization. That is 70% of company funds spent worldwide that did not lead to process efficiency and savings for the companies that spent that money. Why?

Where does the root cause exist? Can a root cause be found?

Is the failure due to poor preparation, planning, inaccurate requirements, poor contracting/SOW development, poor transition to operations after negotiation, poor governance, insufficient communication to the functional team that owns the relationship, misunderstanding of the contract/SOW terms, or a combination of several aspects?

From a digital transformation perspective, it will not matter what the need is if the root cause of failure is related to one or several of the issues listed above. In that case, a need to upgrade skill sets or look for outsourced services to close the gap that may be present.
Some reasons to pursue 3rd party outsourced services will include a higher and better quality of procurement content (master data, catalogs, contract data, etc.), easier processes, and simpler workflows. A more precise understanding of the use of reporting and alerts, improved development and readability of SOWs, easy-to-understand escalation protocols, improved ability to check accountability, improve financial controls, and enhanced training in the use of any portal that is introduced, which will all lead to improved bottom line performance for the company.

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