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Why sole-source procurement is the future in the AI era
As we enter a new era of tech services, I believe enterprises must rethink their procurement approach. In fact, I think sole-source procurement will increasingly become the model of choice. The traditional competitive bidding structures that we pioneered in the late 1980s, with service levels and unit costs, no longer serve us well in a world increasingly shaped by AI.
The reality is that in an AI-first model, the design of services matters far more than the cost of individual components. The benefits that flow from properly designed AI-enabled services are vastly greater than the savings that can be achieved through labor arbitrage or rate negotiations.
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