804: Strategic Services Sourcing in an AI-Driven World W/ Amy Fong

Art of Procurement

"I’m a big believer in market intelligence, where we educate the business on the providers and the levers to pull. It's not about just pricing; it's understanding the market." - Amy Fong, Partner, Sourcing and Vendor Management, Everest Group

Service categories are experiencing unprecedented change driven by generative AI, which is shifting workforce models and evolving commercial structures across the business.

Procurement has to be continuously focused on how these changes are affecting the business. For procurement leaders managing these services categories, navigating this transformation requires new ways to think about areas like contracting, relationship management, and value measurement.

In this episode of Art of Procurement, Philip Ideson speaks with Amy Fong, Partner, Sourcing and Vendor Management at Everest Group, about the rapid evolution of business services sourcing. Amy brings unique insights from analyzing thousands of contracts and observing what leading companies are doing to adapt their sourcing strategies and their approach to output- versus outcome-based contracts.

In this episode, Amy explains:

• Why outcome-based contracting remains an aspiration, not a reality, for many companies (and how to change that)
• How generative AI is fundamentally changing service delivery models and what that means for performance measurement and cost structures
• What procurement teams must bring to the table to earn their place in strategic make-or-buy decisions

Links:

• Amy Fong on LinkedIn
• Get $100 off the super early bird ticket for Engage with code AOPFRIEND
• Subscribe to This Week in Procurement
• Subscribe to Art of Procurement on YouTube