A lack of digital infrastructure was viewed as a critical barrier to investment by 16% of EU businesses, compared to 5% in the US.

Half of these companies predict an increase in the usage of digital technologies, with a more significant proportion being companies that have previously used digital technology.

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.

We seek comments from this community on our Buying Simplified LinkedIn page about your experiences on this topic and how you may have addressed your issue. Do not post any specifics that would compromise a specific party’s confidentiality.

If you would like to explore ways business process outsourcing (BPO) could help your business due to resource constraints and talent gaps, please contact us to discuss how we can help meet your need.

Interested?

If interested in further exploring this
issue, please get in touch with
to schedule a call or ask questions.

Interested?

If interested in further exploring this
issue, please get in touch with
to schedule a call or ask questions.

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