Organisational readiness preparation for the transition to a new outsourcing service provider
Result: Outsourcing transition completed
Sourcing services
Buy or build? Make the decision with confidence
Reviewing your operating model from a “buy or build” point of view is often a key issue. We help you understand every implication before you commit.
There are examples at both extremes: airlines that outsource everything except the customer relationship to strategic partners, and insurers where third-party suppliers provide only small activities. Both can succeed, because these decisions depend heavily on strategic focus, investment policy and the economic environment.
To make a wise decision, management needs a deep understanding of the implications for profitability, organisation and operational risk. A successful in-sourcing or outsourcing decision also needs the right context: the legal relationship, performance measurement, incentive systems and organisational fit.
We have significant experience in establishing outsourcing relationships, benchmarking and contract management. This covers business operations (BPO – Business Process Outsourcing) and IT management (ITO – Information Technology Outsourcing), including infrastructure, application operations and application development.
What we offer
Support across the entire procurement and operating process
Total Cost of Ownership & due diligence
TCO analysis of an existing operational area, or of a proposed new area’s build and operation.
“Buy or build” decision support
A clear, well-founded basis for management’s sourcing decision.
Procurement documentation
Service specification with KPIs and Service Level Agreements, transformation approach, operation and service management processes, and the proposed contract structure.
Contract negotiation support
Expert support at the negotiating table.
Service transition setup
Setting up the transition of services to the new provider.
Contract management
Ongoing support to manage the relationship and performance.
In-sourcing management
Bringing services back in-house in a controlled way.
An outsourcing transaction is very similar to an M&A process: an external partner takes over assets, people and supplier contracts, improves performance and shares the financial results with the client.
In practice
Related references
Let’s talk about your next transformation
Tell us briefly about your challenge. We’ll arrange an introductory call to see how we can help.