The Science of Sourcing Governance

Unlock the Science Behind Sourcing Governance 🚀

Most organizations spend 70–80% of their IT budgets just “keeping the lights on”—and the same inefficiency plagues sourcing governance. The result? Strategic forums are often cosmetic, while operational meetings dominate. This imbalance costs businesses 15–50% of annual contract value in lost opportunities.

It’s time for a shift.
✅ People – Invest at least 5% of ACV in governance resources and ensure clear accountability.
✅ Processes – Own the right governance processes (Contract, Issues, SLAs, Invoice, Service Requests).
✅ Tools – Structure governance meetings with discipline and transparency using formulas like Fmtg = (Frequency, Type, Duration).

Good governance = clarity on “who talks with whom, about what, and when.”
When done right, sourcing governance moves from a rear-view mirror IT agenda to a proactive business value engine.

💡 Key takeaway: Effective governance isn’t optional—it’s the foundation for safer, cheaper, faster, smarter, and greener IT decisions.