This IDC Perspective discusses lessons learned in governing outsourcing relationships to provide guidance when managing newer relationships with digital service vendors for established services, like cloud and mobile, and emerging services, such as AI, IoT, and blockchain. A clear gap in governance is cybersecurity, which is an acknowledged vulnerability in the digital enterprise and must be addressed when managing external digital service providers. Organizations that have created mature processes for managing outsource vendors are better prepared to manage digital service providers.
"Today, global outsourcing of IT and business processes is an accepted business practice to lower costs and create operations that are more flexible," says Ron Babin, adjunct analyst with IDC's IT Executive Programs (IEP). "However, digital capabilities require a much more integrated relationship between buyers and vendors compared with some of the arm's-length 'lift and shift' outsourcing arrangements of the early 2000s."