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 The "New Market Entry" Sole Source Option
White Paper |
Category: Provider Selection IT Infrastructure & Applications Finance & Accounting Services...
Sole source has gotten a bad rap over the years. Most companies associate sole source with overpriced, provider favorable deals defined by their low service levels. Current conventional wisdom in the sourcing industry advocates a multiple provider approach which encourages healthy competitive tension and client leverage by spreading around project among those providers who deliver the best overall value. Sole source therefore, is anathema to procurement departments raised on the holy grail of competitive processes. However, even the most ardent supporters of the competitive process agree, albeit reluctantly, that there are the two "traditional" times when sole source may be appropriate, based on the business strategy and requirements of the buyer.
The first occasion where sole source would be appropriate, occurs when a company wants to re-new an existing outsourcing relationship. For example, if the current provider is meeting all of its contractual and intangible commitments (meaning, it is both a cultural fit and "easy to do business with"), including bringing new innovation, year-over-year productivity gains, and improvements in risk mitigation, then sole source would be the correct approach.
Because of competitive pressures, companies are now looking at the possibility of outsourcing processes that have not been outsourced before. The need to reduce costs, improve efficiency, and avoid investments in facilities, processes and systems has forced the, "art of the possible" discussions within the C-suite that culturally would not have taken place before. The processes under scrutiny are outside the normal SG&A processes and include some industry specific ones as well as those that touch revenue generation and product development. For example, Alsbridge is engaged in discussions with clients about outsourcing legal services, evaluating marketing and advertising expenses from an outsourcing lens, audit, and actuarial services to name just a few.
This desire to look at every cost within the enterprise drives the second reason we are seeing new market entry sole source projects. These are the unique situations in which a buyer's research shows there may only be one provider who has the capabilities needed by the buyer. What is not well known is that there is a third situation in which sole source makes sound business sense for both the buyer and provider. These are what we call "new market entry" sole source transactions. They are not common but happen more often than most in the industry realize - particularly today when windows of opportunity open quickly and speed is of the essence.
Seven Steps to Successful Provider Selection
eNews |
Category: Provider Selection IT Infrastructure & Applications Outsourcing
Outsourcing provider selection is a critical decision in the outsourcing process, but there are quite a few decisions to make in order to be successful.
Alsbridge has identified seven steps to successful outsourcing provider selection. The first five steps must be completed before assessing your sourcing providers. Once you have articulated and documented these considerations, there are two more steps you should take to evaluate all potential providers across the full spectrum of scope in order to ascertain how many of the functions each provider could address and where.
Outsourcing provider selection is an important decision. You now have all of the steps that ensure success, but if you prefer to have someone who has completed hundreds of successful selections, we at Alsbridge are ready to help.
Transform Your F&A Operation with Outsourcing
eNews |
Category: Provider Selection Finance & Accounting Services Outsourcing...
The third part of this article will explore from which countries the top F&A outsourcing providers are delivering these services and the emergence of the Philippines as a key player in the marketplace.
Ten Reasons to Choose a Tier-2 Outsourcing Provider
eNews |
Category: Strategy & Business Case Provider Selection Outsourcing
Many of today's tier-2 outsourcing service providers have developed a level of technical capabilities and prowess that allows them to go head-to-head with larger providers when competing for your business.
Tier-2 providers may lack the size and scalability of larger groups but they can still be a valuable partner for you. Most tier-2 providers have developed their expertise in a specific niche and are positioned to go head-to-head with larger providers when competing for certain parts of your business. Alsbridge's consultants have deep industry expertise to help you decide if a tier-2 service provider is the right choice for your organization.
This article lists ten benefits of choosing a teir-2 service provider over one of the larger firms.
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