{ "docId": "019dd923-5de0-76bd-a16b-1d72bab18495", "docSlug": "0b0e77be71340a95", "documentTitle": "Third-party governance and risk management The threats are real", "authorId": "Deloitte", "authorName": "Deloitte", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.414, "pageNumber": 14, "pageCount": 39, "prevPage": 13, "nextPage": 15, "slideType": "industry_trends", "function": "summarize", "density": "overcrowded", "nDataPoints": 8, "notes": null, "elementsJson": [ "headline_text", "paragraph", "callout_box", "big_number" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16b-1d72bab18495/14", "deckHref": "/decks/019dd923-5de0-76bd-a16b-1d72bab18495", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16b-1d72bab18495.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16b-1d72bab18495#slide-14", "components": [ { "bbox": { "h": 0.24, "w": 0.44, "x": 0.48, "y": 0.6 }, "kind": "callout", "text": "Cost savings/cost-reduction is rapidly losing its dominance as the most significant traditional driver for third-party engagement with only 42.3 percent of respondents considering it a key future driver, down from 57.1 percent a year ago. 44.9 percent see the need for organizational agility characterized by flexibility and scalability (up from 34.6 percent a year ago) to be the strongest emerging value-driver for future third-party engagement.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b4a4c318-0a58-4dea-861e-bf6943a85314", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Cost savings/cost-reduction is rapidly losing its dominance as the most significant traditional driver for third-party engagement with only 42.3 percent of respondents considering it a key future driver, down from 57.1 percent a year ago.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-0491-71ac-9db3-e1dcf3dfe8fd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "percentage of respondents: 44.9%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-0491-71ac-9db3-e46bc14fcda4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.38, "x": 0.48, "y": 0.19 }, "kind": "paragraph", "text": "Emerging drivers: Emerging drivers for engaging third-parties that reflect an increasing focus on organizational value-enhancement are increasingly becoming more significant. The survey reveals that organizational agility, characterized by the need for flexibility and scalability, is emerging as the most powerful value-driver for future third-party engagement (44.9 percent of respondents, up from 34.6 percent a year ago). Similarly, the opportunity to bring in product or service innovation by leveraging specialized knowledge or skills from third-parties is also rapidly enhancing its dominance as a key future driver (26.9 percent of respondents, up from 10.3 percent a year ago).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4cc3da5b-ea42-4b12-88f4-1b535fc4ece7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.38, "x": 0.08, "y": 0.63 }, "kind": "paragraph", "text": "Other traditional drivers such as the need to reduce operational risk through the involvement of third-parties (12.2 percent of respondents a year ago) or improve overall quality parameters (6.4 percent of respondents a year ago) are also declining or remaining unchanged in relative importance, as reflected by 12.8 percent and 3.8 percent of respondents, respectively, considering the above as key future drivers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61e8c337-ab01-4ca3-b7ce-ad5c0f6c98c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.38, "x": 0.08, "y": 0.33 }, "kind": "paragraph", "text": "The survey reconfirms how new and emerging strategic drivers for third-party engagement such as strategic agility, competitive advantage, innovation, and performance improvement, are being focused upon to enhance organizational value.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "952d84cc-3c59-4c00-a817-a194b763671c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.38, "x": 0.08, "y": 0.43 }, "kind": "paragraph", "text": "Traditional drivers: As previously stated, the pursuit of cost savings continues to remain one of the key factors driving the increasing dependence on third-parties. At the same time, the survey reveals that cost saving/cost-reduction is rapidly losing its dominance as the most significant traditional driver for third-party engagement. Only 42.3 percent of respondents consider this to be a key future driver, down from 57.1 percent a year ago.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c611a47-08f6-40f4-a37a-c1a9cdd74dcd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.38, "x": 0.48, "y": 0.45 }, "kind": "paragraph", "text": "With regard to services provided by the third-party ecosystem, as many as 20.5 percent of respondents are expecting to improve their performance from the implementation of best practices related to specific processes operated by third-parties, representing a significant increase from 9 percent a year ago. In addition, 21.8 percent of respondents expect third-parties to be a source of competitive advantage (up from 10.3 percent a year ago).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ad7c932b-1bb6-4937-9035-31e974fa83e1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.38, "x": 0.08, "y": 0.19 }, "kind": "title", "text": "The drivers for third-party engagement are progressively shifting from a focus on cost to a focus on value, reflecting organizational recognition of the strategic opportunity that third-parties can create for them.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "11f173af-c861-4522-892b-13a8aa598d89", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.08, "y": 0.06 }, "kind": "title", "text": "The third-party ecosystem (cont.)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "09b9d3d6-99ea-4bb1-8bb9-99f27aeb7c76", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 18, "from": 10, "beatId": "556cad22-8251-4cd2-a69b-61c24d2d698a", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Evidence & Proof", "beatSlug": "consultants-gambit-evidence-proof", "evidence": "The deck provides survey results and industry trends to support the need for effective third-party governance and risk management", "position": 2, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }