The Impact of Digital on Outsourcing

The Hackett Group Managing Director of Europe David Ketchin talks with Senior Director and Head of Sourcing for Europe Jill Stabler about the latest market trends in outsourcing, and how technology has changed the value proposition that outsourcers can offer.

Show Notes

Tune in to this episode of the Business Excelleration Podcast—hosted by The Hackett Group, a global leader in defining and enabling world-class performance.

This episode is hosted by David Ketchin, Managing Director of Europe at The Hackett Group. David is joined by Jill Stabler, Sourcing Practice Lead at The Hackett Group. The two hold a conversation on the impact of digital technology on outsourcing.

David starts by asking Jill about how the industry has changed in the 16 years that she’s worked in sourcing. Jill tells that hardly any real change occurred until the digital wave entered the space, which altered the way buyers and suppliers interact quite distinctly—Jill then goes on to talk about how suppliers have been affected specifically. Some of the key takeaways are that a few suppliers were, and still are, ahead of the game compared to others when it comes to using digital technologies. Suppliers also benefit greatly from using digital to show clients potential value right away.

The two then move on to talk about how clients must navigate this new world of digital in outsourcing. Jill explains clients must know what they want from digital and be able to communicate their desires to the supplier clearly and effectively. If clients can do this, Jill says they will be able to eventually see gains in the 3 E’s (Efficiency, Effectiveness, and Experience).

Lastly, David and Jill talk about what clients need to watch out for. Outsourcing has changed so much that clients need to be ready to abandon old ways of operating and allow suppliers to really show clients what they can do for them. If you had asked Jill three years ago that suppliers have an appetite for great digital change, she says she would’ve said no. But now, she believes suppliers can handle digital technologies in outsourcing quite well.

Timestamps: 

• 1:10 David introduces Jill
• 3:10 Digital wave on suppliers
• 7:43 How should clients engage with potential suppliers
• 10:18 What specific gains clients are seeing in return
• 14:09 What clients need to watch out for
• 18:25 Do suppliers want this much change
• 22:50 What should organizations be considering
• 27:35 Episode wrap-up