Enterprises face many challenges as they seek next-generation models to add value and better manage risk. In addition, the external environment is no longer static anymore – there are technology disruptions, changes in the geopolitical arena, regulatory developments, etc., – all of which add to the complexity in formulating and implementing a global sourcing strategy. Therefore, it is no surprise that many enterprises today have (or aspire to have) a dedicated, high-performance global sourcing Center of Excellence (CoE) that understands the sourcing needs (demand), the risks associated with services delivery (supply), and, in some cases, even has the necessary buy-in from the enterprise to drive sourcing decisions (e.g., location strategy, vendor selection, and performance management) at multiple levels (e.g., deal, portfolio, and/or enterprise-level).

At Everest Group, our continued focus on global services delivery and interactions with stakeholders in this space has helped us in understanding key responsibilities shouldered by CoEs of leading enterprises. In fulfilling these responsibilities, these CoEs take on one of the two distinct roles at the enterprise-level – “helper” or “shaper.” Our assessment further suggests that while most CoEs continue to play the role of a “helper” at an enterprise-level, many have transitioned to, or aspire to become advisors in select areas of expertise – a trend that is likely to continue over the next few years as global sourcing activities reach greater scale/saturation and complexity.

This viewpoint explores the responsibilities that a global sourcing CoE is entrusted with, the typical roles played by it, and variations therein across enterprises. It also opines on the benefits that are likely to accrue to an enterprise by having CoEs that take on a more prominent role (“shaper”) as opposed to one (“helper”) where they are involved in mostly implementing global sourcing decisions.

Scope and Content

This report presents views on the following topics:

• Global sourcing Centers of Excellence (CoE) – key responsibilities
• Global sourcing Centers of Excellence (CoE) – key roles – “helper” vs. “shaper”
• Global sourcing CoEs – current role and future outlook
• Key benefits for an enterprise with a CoE

Membership(s)

Global Sourcing