How to Procure Top-Notch IT Professional Services in a High-Inflation World

Technology is transforming the world at an unprecedented pace, and businesses need to keep up with the latest innovations and trends to stay ahead of the curve. Procuring IT professional services is no longer a nice-to-have but a must-have for any business that wants to thrive in the digital age. The IT professional services market is projected to reach USD 954.05 billion in 2024, growing at a compound annual growth rate (CAGR) of 9.53% from 2024 to 2034.

Driving Demand for IT Services

What’s driving this demand? Businesses need IT experts who can help them optimize their operations, automate their processes, and deliver exceptional customer experiences. In today’s competitive landscape, digital transformation is not just a buzzword; it’s a critical strategy for survival and growth. Companies that leverage IT services can harness the power of data analytics, cloud computing, cybersecurity, and artificial intelligence to gain a competitive edge.

The Challenges of High-Inflation

The world is facing a high-inflation crisis, especially in Africa, and the tech industry is feeling the heat. As tech salaries skyrocket and inflation reaches record highs, IT service providers are forced to hike their prices and renegotiate their contracts with clients. This dilemma raises the question: how to procure high-quality IT services without breaking the bank?

The Shortage of Skilled IT Professionals

Moreover, the shortage of resources and expertise exacerbates the situation. With a limited number of skilled IT professionals, businesses often find themselves competing for the same talent, driving costs even higher. The demand for specialized skills in areas like cybersecurity, artificial intelligence, and cloud computing has surged, making it tough for many organisations to find the right experts to support their digital transformation projects.

MTN’s Strategic Initiative

This is where GSSC comes in. At MTN, we understand the challenges of procuring IT services in the African market, where quality and cost efficiency are key. That’s why we have launched a strategic Group RFP to set up a panel of group vendors that can provide us with the best IT services at the best prices. Our goal is to ensure that we have access to world-class IT talent and resources, as well as regional African expertise.?

Our Approach

We embarked on a strategic journey to revolutionize our IT service vendor selection. By conducting a thorough market scan, we invited the world’s top IT service providers and regional African vendors to participate in a Request for Information (RFI) and Request for Proposal (RFP) process. We meticulously evaluated their capabilities and offerings.

Innovative Vendor Selection Process

One of the most innovative aspects of our IT service vendor selection process was the implementation of an electronic Reverse Auction (eRA) based on standalone profile rates and followed by a representative TCO approach. This marked the first time we employed this technique in rate card negotiation.

·????? First, we conducted an eRA for high runner job roles, where vendors competed for the most common positions. This allowed us to benchmark rates effectively and ensure we were getting the best price for these critical roles.

·????? Second, we introduced a squad-based eRA, where vendors bid for a blended rate with t-shirt sizing. This approach enabled us to assess the overall cost-effectiveness of vendors’ service offerings, considering the diverse skill sets required for our projects.

Achievements and Outcomes

During that selection process, we witnessed unprecedented engagement and motivation from vendors eager to be part of the MTN Group service panel. Vendors were keen to showcase their capabilities and secure a place within our esteemed panel, driving them to offer their most competitive rates. Thanks to this strategic initiative, we managed to achieve a significant saving on our group rate cards as well as securing the best in class T&Cs.?

Preferred Partners

As an outcome, we categorized the vendors into two groups: preferred partners and referenced vendors. Preferred partners were granted the privilege to target a larger market share within MTN, creating a win-win situation. This categorization not only incentivized vendors to strive for excellence but also ensured that we had a reliable and high-quality pool of service providers to support our IT needs, whose performance will be closely measured and assessed. ??

Strategic Partnerships

In today’s fast-paced digital landscape, we have curated an exceptional panel of IT professional service vendors, ranging from global giants to regional innovators, all offering top-tier IT services at extremely competitive prices. Part of legacy group vendors lost their incumbent status and have been replaced by newly introduced vendors. By forging strategic partnerships with these vendors, we are poised to execute MTN’s Ambition 2025 strategy and realize our vision in the coming years. This initiative not only grants us access to the best IT services but also empowers us to navigate the challenges of a high-inflation environment and sustain our competitive edge.??

Driving Innovation and Efficiency

By aligning with MTN’s Ambition 2025 strategy, we empower businesses to stay agile, secure, and customer-focused, ensuring ongoing growth and relevance in the digital age. Our strategic partnerships help us integrate cutting-edge technologies smoothly, driving digital transformation across our operations and improving our ability to deliver innovative solutions that meet our customers' evolving needs.

Together, we drive innovation, efficiency, and value creation, positioning MTN as a leader in digital solutions for Africa’s progress. Our collaboration with vendor partners enables us to use technology to create meaningful impacts, fostering economic growth and development across the continent.