As regulations and consumer pressures shift and organisations are increasingly exposed to risk – reputational and beyond – the procurement industry faces a critical juncture. This dynamic has created a business environment where sustainable procurement programs are no longer just nice to have, but an integral organisational function that is responsible for protecting and improving brand reputation, driving revenue and mitigating business risk.
The formation of a good sourcing agreement relies on clear thinking and agreement between the parties on what is to be done, why and how. The market and technology are changing so rapidly that the next agreement is likely to bear little resemblance to the last. How to make sure we ask the right questions and not just the obvious of the suppliers and ourselves?
Your mess for less
In days of old, when suppliers were big, profitable and mostly American, the questions to be asked to define what a customer wanted of a new service addressed aspects such as:
Globalisation has sparked a shift in production to third parties. Savvy manufacturers are tapping digital networks to maximise opportunities and minimise risk.
Most companies recognise outsourcing as an attractive way to efficiently complete software development projects, especially for companies that are experiencing skills gaps, time gaps or budget gaps. When this happens, outsourcing can be a viable solution – but only if the company trusts the vendor to protect proprietary code, follow through on promises, be accountable, and deliver quality work on time. But trust isn’t the only consideration when it comes to outsourcing software development.
Crisis is now an everyday occurrence, and is a risk that can be mitigated but never truly eliminated. In a world that seems to be increasingly prone to crises of every conceivable type, a recent survey from Deloitte – A Crisis of Confidence – finds a broad “vulnerability gap” between the awareness of threats and the preparations to actually handle them.
Levels of concern in business appear to be rising, as the date for the roll out of the new EU Data Protection regulations, known as GDPR, was announced (May 25, 2018, by the way). Social media were alight with comment and speculation and many people were questioning if a potential Brexit could impact the uptake of the regulations in the UK. The bottom line is, we have our own Data Protection Act, which will remain and it is not possible to rule out the adoption of best practice guidelines, regardless of any potential Brexit outcome.
The data and cyber regulatory regime in the EU – which includes, for the time being at least, the UK – is undergoing a very significant shake-up. The new General Data Protection Regulation which will come into force on 25 May 2018 will bring a number of new measures into play such as much increased fines (up to the higher of 4% of annual worldwide turnover or 20 million euros, in some cases) and mandatory reporting of most data security breaches.
Before discussing the rewards available for a financial services organisation in the cloud it is important to get an understanding of the regulatory backdrop. In October 2014 the Financial Conduct Authority (FCA) launched Project Innovate, an initiative to foster innovation in the cloud. The key driver behind this project was to understand in more detail where the regulatory framework needed to be amended in order to foster innovation.