Review and Positions: A Practitioner Perspective on ‘Smarter Sourcing’ in a Post-Crisis Environment

The recent financial crisis has resulted in massive disruptions in the world economic environment. The western economies have yet to recover from the deep recessionary trends unleashed by the crisis. Financial institutions in North America and Europe have had to write-off billions in bad debts. The author argues that in order to survive similar ebbs and flows in the economic environment in the future, the financial institutions must transform their operating models. The new operating models should be built around the notions of improved agility and flexibility. Componentization and global sourcing are among the key enablers of such a model.