7 success factors to boost digitalization with multisourcing.

With a clear vision for their digital residents, Stockholm suburb, Nacka, has chosen several operating partners to enable future growth.

Nacka is one of Sweden’s fastest growing municipalities; the number of residents is expected to double to 200,000 within 15 years. With this fast-paced growth ahead, the requirements for well-functioning municipal services also increase. IT services are seen as the major enabler and the most crucial component of the expansion. As a result Nacka has developed a clear vision and digitalization agenda, where the goal is to be one of the top ten most digitalized municipalities in Sweden. With such a clear objective, Nacka challenges their traditional way of doing business. This includes looking into new suppliers and a new procurement process with a multisource strategy.

Do your homework!

Nacka’s managing director Mats Bohman’s two most important tips to other municipalities are to get a clear picture of how the supplier market looks and how it can collaborate with the needs of the municipality. “Since the suppliers know the ins and outs of IT, I’d recommend you to start a conversation with them relatively early in the process. You need to do your homework before the procurement process starts, so you know exactly what you are looking for. Ask a lot of questions that will indicate if you are on the right track in your train of thought. Once the procurement process has started, everything is, of course, confidential.”

7 tips from Mats Bohman and Lotta Nordström to other municipalities:

1. Do your homework so you know what to look for
2. Understand what the market looks like
3. Have extensive dialogues with potential suppliers
4. Think about which parts of your IT delivery are suitable to outsource. Do you want to keep anything in house?
5. Let the process take the time it needs
6. Clarify the level of flexibility in long-term deals
7. Do you expect innovation? Is that included in the deal? Is it effective to include the expectations of innovation in a standardized sourcing agreement? The question is: what is the optimal operating service that is, at the same time, the most cost effective?