Innovative use of new technology can give you a serious competitive edge – but how do you know which technologies are appropriate and which can be adopted without undue risk?

No business can afford to ignore valuable new technology that has the potential to exert change for the better, whether those changes are radical and 'disruptive' or simple step-changes towards greater efficiency and cost savings. However, as technology develops so quickly, the case for adoption is rarely clear-cut.

Innovation is about the application of technology, giving users functionality that didn't exist in order to unlock value from the business. It is one of the three main drivers for deploying technology solutions, the other two being cost reduction and risk reduction. Identifying innovation is the leading quality customers want from their outsourcing supplier, to help them understand and anticipate the impact of new technology and process developments. Indeed, one of the ways in which an ICT services supplier can help shoulder risk on behalf of its customer is to accept the task of tracking, analysing and understanding emerging technologies.

The service provider must take ideas to the customer, analysing emerging technologies and their potential for the business. How easily and successfully it can be implemented depends to a very great extent on the relationship between the ICT supplier and its customer which needs to operate at a number of levels. And care must be taken so that any outsourcing contract provides room for innovation.