I had talked about Consolidation being one of the main themes in IT Strategic Sourcing couple of weeks back. The last 5+ weeks of development in the financial worlds, have started to show its impact to the rest of the commercial sectors as well, this will become the platform for Consolidation to become Mainstream now. Companies constrained both with cash and management bandwidth will not be able to manage the multiple levels of structures either in processes or engagements within or outside the organization. As most commercial organizations grew over the last decade or so, they accumulated systems, structures and processes that even though were not among the bests, did not create hindrances in the growth – as the external stimuli were stronger to cover in-efficiencies within the systems. Those luxuries are gone now.
Current challenging environment will provide thinking time and platform for companies to seriously look within and ask tough questions. Companies must re-invent themselves from simplification of business and technology processes and standardizations of operating environments. This will also provide great opportunity for them to drive consolidation of partners, technology platforms, business processes, application and infrastructure portfolios. Consolidation has the potential to drive significantly higher level of optimization and increased productivity. Companies that will adopt this pro-actively will reap more synergies with un-locking their assets and deploying them appropriately for much higher returns. It is also an opportunity for clean-up of many in-effective systems, processes and partners that have not delivered higher value so far. Consolidation does not mean reduce footprint for thinking and innovation, it certainly means doing more with less – getting fewer systems to deliver higher and more effective business results.