Enterprise leaders believe that in the current scenario, it is important to ensure the matching of an organization’s vision with the commitment provided by the IT vendors, rather than focusing on minimizing cost alone
CIOs say that before the pandemic, businesses selected IT vendors based on having the maximum value at the lowest cost. In the current changing business environment, cost isn’t the only critical deciding factor if the vendor’s service is not helping the organization avoid or survive through a crisis.
Now organizations are looking at stability and highest commitment as the most crucial element of IT vendor management for any enterprise.
The cost is still a key factor, but enterprises also take other aspects like the vendor’s internal resource management, remote source, long-term vision, etc., into consideration.
Technology will be playing a continued vital role in any successful enterprise. Investment in the right IT vendor is the most critical factor for that strategy.
Long-term collaborations as partnerships with IT vendors
CIOs suggest building a data-driven business model that is also future-proof. They suggest having a blend of IT vendors capable of supporting their internal processes and operations at a global level.
Businesses should focus on developing digital value generators that can reclaim growth that was stopped or slowed down by the pandemic.
Prominent organizations have the in-house capability to develop software individually, but they have invested in an IT partner ecosystem for furthering innovations on parallel lines.
The main strategy is to understand the partnership value before investing in a vendor specializing in any technology. CIOs suggest that before investing, it is important to analyze the long-term goals, to see if they interject, and the benefits that accrue after the deployment.
An IT partner ecosystem is vital; it helps joint innovation, requiring an accurate strategic fit.
Enterprise leaders believe that when deciding on a strategic shift, it is important to participate in collaborative decisions. They suggest setting up a comparing system for IT vendors where they are evaluated based on their innovation, long-term motto, mutual partnership value to both the organizations and technology.
Once this analysis is completed, the organization embarks onto the conventional process of understanding the deployment challenges, technology use cases, cost factors, post-deployment advantages, etc.
Using the pay as you use model as the basis for vendor selection
CIOs say that the pay as you go model gives them scalability that differs depending on the economic situations and business performance. As a result, when they are faced with a not-so-favorable economic situation, they can easily eliminate the extra costs by scaling down the software and server needs.
This setup will help to get control of the business spends during unprecedented situations like the pandemic.
Enterprise leaders say that when multiple IT vendors for similar technology are being evaluated, it will be beneficial to evaluate them based on technology or software and factors like resource allocation for support and developing solutions.
It is important to be aware of the collaboration level and number of resources that the vendor is ready to commit to, for ensuring business support in the long run.
Selecting PaaS vendors as business enablers
CIOs say that when businesses opt for a Hybrid environment, they are looking to serve the best of both worlds- the scalability of the cloud platform and the on-premise environment’s cost efficiency.
They have opted for an IT investment plan that focuses on the Platform as a Service model and expanding IT modernization. Businesses intend to increase their teams’ flexibility and agility for innovation.
When the migration process is seamless, it allows pushing for newer tech projects. PaaS setup with strong integration services is beneficial for developing in-house capacities.