Overview of the IT industry
In this age of digital disruption, technology companies are finding it difficult to transform their operations and business models and reduce the time-to-market for the products offered. As a result, IT companies have been compelled to identify trends in the market to formulate better strategies and understand the potential areas of growth. Our research shows that the growth of the IT industry can be attributed to factors such as the implementation of government-backed reforms and the increased spending on IT infrastructures.
Though the IT industry is witnessing promising growth, several factors may curtail the growth of the industry. They include:
- Cybersecurity: Today, the IT industry is facing a host of challenges pertaining to privacy and taxation. With the rising occurrences of cyber-attacks, governments across the globe have started investing heavily in setting up a better IT infrastructure to curtail the chances of cyber threats. Similarly, companies operating in the IT industry should have been forced to implement strong and reliable cybersecurity measures to improve their service efficiency and reach out to the target audience in an agile and seamless manner.
- Maintaining innovations: The IT industry is witnessing a radical shift toward digital disruption. Prominent IT companies are facing the need to stay ahead of the competition by leveraging new technologies. Moreover, to keep pace with the competitors, companies are adopting strategies that focus on consolidation and mergers and acquisitions to foster entrepreneurship and enhance production capabilities.
To deal with such challenges, many IT companies have started leveraging solutions that aid in risk analysis. A risk analysis solution helps business identify, assess, and mitigate risks in the supply chain to reduce vulnerability and ensure consistency.
The Business Challenge and Our Journey
The client, a renowned IT company, wanted to profile the most prominent suppliers and evaluate their overall performance. With the help of SpendEdge’s risk analysis solution, the client wanted to address delays in the launch of new products and services and delays associated with the disruption in the supply chain. With the help of our risk assessment solution, companies in the IT industry wanted to understand the regulatory penalties better and accordingly re-allocate their resources to improve supply chain efficiency.
To analyze the predict risks in the supply chain process, SpendEdge’s procurement experts carried out extensive research comprising interviews and discussions with prominent stakeholders in the IT industry. The procurement experts also compiled information from various secondary sources including trade shows, company presentations, and industry forums in the IT industry.
The risk analysis solution offered by SpendEdge sought ways to identify the typical risks associated with the key suppliers. The engagement also offered insightful ways for the client in the IT industry to profile the macro and the microeconomic risks and issues pertaining to the quality of the products offered. The risk analysis solution also offered potential ways to monitor the impact of the risks on the supply chain efficiency in the IT industry.
Fundamental questions answered in this supplier risk analysis solution include:
SpendEdge’s risk analysis solution helped the client identify, develop, and obtain the right supplier risk data and revisit their risk assessment models to mitigate potential supply chain risks. The engagement assisted the IT industry client to refine their skills and improve continuity in their supply chain operations.