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      Organizations typically spend up to 75% of their IT budget externally both in the process of providing operational IT services, and also to drive technology and business transformations.

      These programs are central to any organization’s technology agenda and a critical enabler for organizations to achieve their digital transformation. Common challenges involve conflicting interests, complex legal and regulatory requirements and ambiguity in an ever-evolving market of providers and technology.

      Sourcing and transformation initiatives can arise for a number of reasons such as the need for external specialist expertise, scalability, cost structure optimization or a distressed deal with an incumbent service provider, to only name a few.

      Our Tech Sourcing and Transformation experts provide a variety of specific skills and knowledge required to drive individual sourcing initiatives while integrating them into the big picture overall strategy. This way, it is possible to align IT and business requirements for the long run.

      Miles Underwood
      Miles Underwood

      Partner, Digital Transformation

      KPMG Switzerland

      Lutz Gerhards
      Lutz Gerhards

      Senior Manager, Digital Transformation

      KPMG Switzerland

      Why KPMG services?

      • Global network of experts, generating local impact

        We combine our in-depth knowledge of the Swiss market – including its business environment, culture and regulations – with our global network of Digital Transformation and sourcing experts to deliver innovative, practical sourcing initiatives that create lasting value.

        Our local teams ensure that your sourcing initiatives align with Swiss realities, and our global network provides access to the latest best practices and technologies worldwide.

      • Co-creating your digital future

        At KPMG, we believe that shaping a company's Digital Transformation is a collaborative and agile process. Changes to your service structure, vendor landscape or software can be complex and disruptive. That’s why we take the time to understand your business, your challenges and your aspirations.

        Our Insights Center sessions offer a valuable platform for open dialogue – allowing us to co-create tailored solutions together with our clients.

      • Business focus

        KPMG's business focus is centered on delivering measurable value and tangible results that drive our clients' growth and success.

        We prioritize understanding the specific needs and objectives of each business. This enables us to provide strategic insights and solutions that are innovative, practical and actionable within each unique market.

      • Proven frameworks and methodologies

        They are the result of years of refinement and successful application across a wide range of projects.

        They provide a structured approach to problem solving and project execution, ensuring consistency, efficiency and the highest quality of service for our clients.

      Our services to address your challenges and key pain points

      Sourcing Advisory

       

      In today’s digital landscape, leveraging external technology partners and outsourcing arrangements is strategic and inevitable for most organizations. Finding – and especially changing – a provider to deliver technology services while staying aligned with broader business goals can be complex and disruptive.

      Organizations often struggle to strike the right balance between capabilities, economics, trust and confidence when selecting outsourcing partners.

      Our Sourcing Advisory service supports clients throughout their transformation journey.

      This includes defining a sourcing strategy that aligns with the organization’s overall business goals, identifying sourcing potential, searching for and selecting the most suitable strategic partner(s), and implementing services with a methodology that is proven and tailored to each client’s specific requirements.


       

      Value Leakage Advisory

       

      A transformation does not stop with the implemented outsourcing arrangement. Getting the fine-tuning right throughout the duration of the arrangement is a key success factor to create long-term value from your transformation. Unless managed appropriately, an outsourcing arrangement will deliver decreased value in the future because of e.g. emerging procedural inefficiencies, contractual inaccuracies, or changing deal parameters through technological evolutions like cloud or AI. Typical results are a lower service quality, mismatch of requirements and services provided, and ultimately a growing dissatisfaction with the provider.

      Our Value Leakage Advisory service supports clients to structure monitoring activities and implement an outsourcing lifecycle management that gives full transparency over performance, risks, financials, and added value of outsourcing relationships. This includes contract review and vendor assessment, implementation of a vendor management capability, vendor management as a managed service, IT cost analysis and external spend optimization, as well as vendor performance reviews. 

      Software Asset Management (SAM)

       

      The rise of license-based fee models generates new and growing challenges for organizations of all sizes and industries. Software is an IT asset that is difficult to track and manage. Its licenses are transitory in nature and have short lifecycles that require a continuous management. In addition, providers typically have significant knowledge advantages over most organizations when it comes to functionalities, pricing components and renewal incentives.

      Organizations without clear SAM strategies often struggle to manage and monitor license consumption and related spend. Typical effects are an emergence of shadow IT, non-compliance with company processes, strategies, and governance, and a high potential for wasted investments.

      Our Software Asset Management service supports clients to reduce license spend, insulate against software audits, make better informed spending decisions, and effectively re-provision IT assets. This includes SAM Maturity Assessments, SAM process design, license optimization activities (e.g. for IBM, Microsoft, SAP, Oracle), and end-to-end Software Asset Management as a Service.

      Navigating success: our proven approach

      Our sourcing methodology is based on our extensive experience delivering successful strategic sourcing initiatives to clients in the public and private sectors. We collaborate closely with our clients, tailoring each transformation initiative to their unique needs and objectives to ensure a seamless and impactful journey.

      • Identification phase: strategic context and assessment

        Outline the overall goals of the sourcing transformation, aligning them with key stakeholders in the organization. Define the scope, then assess the current service structure and legacy outsourcing arrangements. 

      • Design phase: sourcing strategy and guiding principles

        Design the target service landscape in alignment with the target vendor landscape. Define the service cuts and bundles that will be outsourced, ensuring they align with internal capabilities and the strategic roadmap.

      • Execution phase: RfX publication

        Define the guiding principles and detailed criteria for vendor search and selection. Create and publish RfX documents, provide contract templates, conduct vendor presentations and execute the sourcing process in line with agreed-upon timelines.

      • Deal phase: negotiate and draft a contract

        Evaluate vendor proposals and implement a negotiation plan that results in a final decision. Facilitate contract negotiations to successfully conclude the deal.

      • Transition phase: transfer and implementation

        Define a detailed transition plan and create appropriate incentives for the current and future provider(s) to successfully transition their services. Implement governance changes and carry out change management activities.

      • Run phase: new operating model and optimization

        Implement and follow through with monitoring and vendor lifecycle management activities. Consider making continuous improvements to the organizational setup and processes, such as strengthening the organization’s vendor and software asset management capabilities. 

      Partnering for success: submit your interests & open questions

      A holistic sourcing transformation requires a committed partner to ensure success at every phase of the journey. 

      At KPMG Switzerland, our team of sourcing professionals has extensive cross-industry experience and is ready to help you reach your goals.

      Contact our experts

      Meet our experts

      Miles Underwood
      Miles Underwood

      Partner, Digital Transformation

      KPMG Switzerland

      Lutz Gerhards
      Lutz Gerhards

      Senior Manager, Digital Transformation

      KPMG Switzerland