Third Generation Outsourcing Pricing
Compete on margin, not price – it’s as simple as that! Bespoke outsourcing drives value for confident, innovative organisations. Like most business practices – if outsourcing is launched with the wrong approach, it won’t create value. And will often destroy it, leading to years of recovery and even the fateful abandonment of an exceptional productivity tool.
“I support my growth with the support of Edgeview consulting. I am a Bluebook client – I have 24/7 access to experienced advice, modern management techniques and productivity tools”
Third Generation Outsourcing Work Stages
Sourcing Preparation – strategy and target benefits, risk analysis, mitigation planning, scope definition and business case preparation
Transition Management – Due diligence completion, service level agreement confirmation, readiness review, service acceptance, and business continuity
Sourcing Selection – Procurement process, detailed service requirements, procurement documentation, engaging the market, supplier evaluation and selection, commercial negotiation, defining supplier management and governance, and supporting contract negotiation
Delivery Management – Establishing the supplier management organisation and processes, establishing, and reviewing financial controls, and independent service delivery assessment
Service Evolution – Benefits review, portfolio management, definition, and assurance of service improvement programs, change management, contract change negotiation, and re- competition.
Assessment and Development – Overall sourcing performance assessments and benchmarking.
We know we have delivered the best possible result for a client when we can see a renewed passion for the business and a sense of relief from our clients.
This relief comes from knowing that they and their employee’s futures are secure, and the vision of their business is brought to reality.
Edgeview works with CEOs, Business Owners, COOs, CFOs, doctors, accountants, or lawyers now looking for the best way to serve their clients and enhance profit capabilities.
We seek to develop a long-lasting and productive relationship with all our clients.
We can successfully support and empathise with our client’s challenges because:
- We align outsourcing objectives “top-down” with overall strategic business objectives;
- Before developing a new outsourcing relationship or renewing an existing one, we create a comprehensive outsourcing strategy that reflects the needs of your business and service availability. The strategy considers internally vs externally outsourced resources, hardware and software procurement and ownership, facilities (data centre) location and ownership;
- Before engaging in the outsourcing process, we evaluate the market, focusing on various vendor tiers (i.e., Global vendors of comprehensive services vs more focused niche providers), on-shore vs offshore vendors, service-only vs service and product vendors;
- Engage the vendor, management, and representatives of the business in the strategy development process as well as the implementation;
- Structure vendor agreements for flexibility to handle changes in requirements and volumes – preventing volume price creep;
- Holistically manage relationships through structured governance, vendor management and service management disciplines;
- Perform exhaustive due diligence, or prepare staffing models and proposed transition plans and ensure they are thorough and consistent with the culture of the business; and
- Maintain a hands-on guidance and execution focus throughout the transition phase.
- The outsourcing arrangements’ value is measuring performance and ensuring that value is delivered to the organisation.
- Assessing or declining the use of service level agreements ensuring metrics are tied directly to the business outcomes required;
- Smaller, more focused relationships with flexible contract terms, allowing for more client flexibility to accommodate evolving business needs; and
- Contract flexibility – ensure vendor contracts have greater flexibility built-in to address changes in platforms, architecture, services, and performance requirements; and
- Understand the impact of outsourcing vendor’s location. How will local currency affect fees (impact of rising currency costs)? How have wages tracked over the last 24 months? And are start times suitable due to timezone?
- Clients also look towards on-shore options to meet specific business requirements.