April 24, 2018
SPG Recap: How Are You Dealing with the New World Economy?
Thank you to everyone that was able to attend our Strategic Partnerships Group Meeting last Friday. We had a great discussion on the topic: How Are You Dealing with the New World Economy? A huge thank you to our panelists: Wayne Arnold, IT Vendor Management, Indirect Sourcing and Procurement, Allen Geen, Senior Director, Vendor Relationship and Portfolio Management at SuperValu, Matt Haux, VP Vendor Management and Infrastructure at LTCG and Bill Sedoff, Director, Global Indirect Procurement at Ecolab.
Just like any other year, jumping into 2018 brought economic changes. We covered a variety of topics at our SPG meeting last week. These topics included tax cuts, H1-B, tariffs, and vendor management. Below you will find some of the questions that we're asked among the group.
How are you going to invest more in capital projects and IT projects?
One option that we would all appreciate is giving more money to employees within the organization. Other conclusions brought on by this question we're that people may not be doing anything right now because they are concerned about the long-term impact. Matt Haux, encouraged members of the group to talk to someone in accounting to learn how those funds are being used.
Will federal pressure on H1-B limit offshore IT workers?
As many of you know, there has been a cap put on H1-B petitions. How will this affect offshore IT workers? It's hard to tell right now. Despite this cap, it's always good to have a mix of onshore and offshore talent within your organization. A global inhouse center may be beneficial if you don't already have it in place. There are plenty of different models out there for starting GIC's.
Will tariffs trigger Force Majeure clauses?
We had a chance to tackle how the force majeure clause is affecting IT. The force majeure clause is a contact provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. We never concluded, but it's a question to ponder as we get deeper and deeper into 2018.
Will Vendor Management become harder?
Different companies approach vendor management in different ways. In the end, one of the best things you can do is to have a team approach involving a Vendor Management Officer and a Procurement Officer. We've concluded time and time again within these meetings that building the right relationships and teams is the most effective way to see the results you're looking for.
How is your organization preparing for these changes?
You can find Friday's slide deck here.