In today's uncertain economic climate, business and IT leaders face the dual challenge of accelerating business transformation while managing increasing cost pressures. Geopolitical uncertainties, inflation, and market fluctuations further constrain their flexibility, and the margin for error has never been slimmer. Yet, this environment also presents opportunities for bold, strategic moves, one of the most impactful being IT vendor consolidation.

Digital transformation as a business differentiator

Digital transformation has evolved beyond mere technological projects to become a key differentiator. Organizations that are outpacing their competition don't achieve this through minor improvements; they leverage artificial intelligence for real-time personalized customer experiences, discover new revenue streams through agentic AI, automate core functions to free resources for creativity and innovation, and modernize their platforms to develop new products more rapidly. These outcomes result from close, strategic partnerships with IT partners who deeply understand business operations and can effectively drive business change.

Transitioning to strategic partnerships

Leading organizations are moving away from transactional vendor relationships towards business-driven strategic partnerships. The goal is not only cost savings but also delivering measurable business benefits. In this model, partners are expected to demonstrate genuine commitment and a shared vision aligned with the client's strategic objectives. This approach forms the foundation of strategic IT vendor consolidation.

Leading organizations are moving away from transactional vendor relationships towards business-driven strategic partnerships.

Rather than managing an extensive list of niche providers, organizations streamline their IT vendor landscape, not merely to simplify operations, but to ensure that partners can deliver scalable business benefits. According to Gartner, 75% of organizations will implement a comprehensive vendor consolidation strategy by 2025. This shift is not just about eliminating underperforming vendors; increasingly, organizations are moving services away from large vendors lacking agility, vision, or the ability to deliver comprehensive transformative results, or those introducing new risks to business continuity and/or costs.

According to Gartner, 75% of organizations will implement a comprehensive vendor consolidation strategy by 2025.

In this new model, trust and credibility are central. A strategic IT partner must consistently provide high-quality service, possess deep expertise across various business areas, and bring proactive, advisory-level business and technology insights to the table. The partner should be able to demonstrate tangible business benefits and continuously develop service delivery through a global delivery model, service model optimization, hyper-automation and AI, as well as platform modernization.

Strategic IT vendor consolidation as a catalyst for change

This is where CGI comes into play. As a trusted strategic partner to leading organizations worldwide, we help our clients in consolidating their vendor ecosystem while accelerating transformation. Our model is based on flexibility, business alignment, and co-creation. We don't just deliver IT services; we enable our clients to implement their strategies faster, smarter, and more securely.

The path forward is clear: fewer vendors, deeper partnerships, and smarter collaboration. Strategic IT vendor consolidation is not merely a cost-cutting measure; it is a catalyst for accelerating change.

If you're interested in learning how CGI can assist your organization in business transformation through strategic vendor consolidation, contact us to continue the discussion.