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With rapid digital advancements, IT sourcing emerges as a strategic cornerstone, defining businesses’ competitive trajectories. This chapter illuminates the evolving landscape of IT sourcing, highlighting how digital transformation steers this evolution. From the emergence of AI, Cloud Computing, and decentralization to the paradigm shifts driven by globalization, cybersecurity, and ‘As-a-Service’ models, the chapter unravels the complexities and opportunities inherent in these changes. Complementing this is a focus on agility, scalability, and ethical considerations—key themes that resonate in a world of swift technological progress.
For CIOs and IT leaders, the modern digital age isn’t just about innovation but about foresight, transformation, and strategic alignment. Your role is amplified, bridging traditional IT functions with the demands of the future. This chapter underscores the criticality of IT sourcing decisions in shaping an organization’s digital future. With real-world case studies and a gaze into emerging technologies like Blockchain and Virtual Reality, this chapter serves as both a guide and a catalyst for leaders eager to navigate and capitalize on the digital transformation journey.