Sourcing business services

More than outsourcing!

Our approach to sourcing covers the full lifecycle: review, strategy definition, internal preparation, supplier selection, contract set up, implementation, ongoing support, renewal and termination.

Our proven techniques will ensure the internal and external capabilities are properly assessed, and identify the most appropriate structure and combination of resources and services are deployed, ensuring they are properly aligned to your business objectives.

We have wide experience of sourcing all IT related services, together with a wide range of other business services, including accounting, HR, procurement, CRM, and facilities management (catering, security, maintenance, cleaning, reception, post).

Over a 5 year period we have worked on more than 30 sourcing projects - UK, European and global - reviewed more than 60 supplier proposals, and more than 15 supplier contracts, covering most IT infrastructure services (desktop, helpdesk, data centre) and application services (support, development).

Approach

Our approach to sourcing is based on a proven framework which has been developed from our practical experience of working with blue chip and boutique consultancy firms, combined with additional research and refinement to give a model which is both comprehensive in scope and rigorous in detail, and yet is easily adaptable to meet the specific needs of any project.

The approach covers the key stages of the sourcing lifecycle:

• establishing the project - ensuring proper understanding of scope, deliverables, reporting, and controls
• determining the sourcing strategy - defining the outline of the future state, with the optimum combination of internal and external services, together with the approach for how to achieve it
• defining requirements in more detail - so that the solution can be built internally or procured externally
• engaging service suppliers - building the internal capability or establishing contracts with external suppliers
• moving to the new arrangements - managing a smooth transition
• reviewing the arrangements - to ensure service, relationships and value are maintained

Within this, the approach covers the key questions which need to be addressed at each stage:

• why? What are the business goals the sourcing is aiming to address, and how will benefits, risks, and costs be managed?
• what? What services does the business need to source, how much demand is there, and what level of service is needed?
• how? What controls are needed in commercial terms, contracts, and overall governance of services?
• with? What people will be involved, what assets are needed, and what infrastructure will be used?
• when? What are the plans for procurement, implementation, and the sourcing project itself?

The approach takes account of the key ingredients which make for successful sourcing project:

• sponsorship and commitment from senior management
• involvement and buy in from stakeholders
• a comprehensive approach to all the areas
• effective governance and controls
• clarity of requirements

Working with our client's management team, the client's internal resources and any external suppliers, we will ensure that each of these principles is properly addressed throughout the project.

Sample experience

UK police force - ICT services

Client situation

UK police force about to re-tender the contract for a wide range of ICT services – help desk, desktop, servers, data networks, radio, applications support – around £4M pa. The Force sought independent consultancy support on key areas of: governance, supplier management, exit and termination, service structuring and definition, ITT structuring and content, due diligence data preparation, and risk assessment and management.

Involvement and value

Andy worked closely with the Force’s project team throughout 2004 to provide practical advice, guidance, support and knowledge transfer in all the key areas. As a result, the Force was able to conclude a deal which gave a clearer definition of services and costs and reduced risk by comparison with previous contracts.

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Food manufacturing company - ICT services

Client situation

Autonomous division of larger organisation, aiming to improve business focus and quality of IT services and enable future growth. The company asked for assistance in assessing the potential for outsourcing, identifying potential suppliers and defining the way forward. A key factor was the small scale of the expected deal – around £150K pa revenue.

Involvement and value

Andy worked with the company to define an initial outline of service scope, the boundaries between internal and external aspects, then to identify and engage potential suppliers with a good match for the client in scope and scale. As a result, the company was able to confirm the scope and benefits of outsourcing and gain management commitment to proceed, with the option to run a competitive procurement involving at least four interested suppliers.