Sourcing Advisory

Business transformation through sourcing

De risking and maximising benefits for complex projects and programmes

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"De-risking Partner Enabled TransformationTM"

Business Transformation

Sourcing Advisory specialise in helping our clients to achieve significant business improvements through “Partner Enabled TransformationTM”. Whether it is an outsourcing project, a shared services implementation or a major systems/ ERP project – the common elements are usually the desire to achieve significant business benefits and the need to work with a specialist implementation and/or delivery partner to achieve this. We provide support across the lifecycle of these projects through:

  • Strategy development
  • Business case and feasibility work
  • Short listing, evaluation and selection of implementation/ delivery partners
  • Formulating commercial, contractual and operational arrangements to make these work
  • Project and programme management
  • Governance and QA of operations
  • Realigning/ exiting and re-sourcing failed arrangements or extending successful ones
"Outsourcing is a tool not a solution"

Outsourcing

Sourcing Advisory have experience of numerous outsourcing deals covering Business Process Outsourcing (BPO) of Finance, HR, Procurement and industry specific processes, plus IT outsourcing (ITO) across Applications and Infrastructure areas. We have worked with organisations in the UK, Europe, US and South America. These deals have ranged from in country delivery with a single supplier to mixed delivery models covering multiple suppliers/ locations/ internal and external components.

Common to our approach is that outsourcing is a tool not a solution in itself. In many cases outsourcing is a key part of the delivery model, to de-risk a transformation or to realise labour arbitrage savings through offshoring. However, without a wider perspective on the options, approach and implications many outsourcing deals will continue to disappoint.

"Finding the right mix between internal and outsourced shared services"

Shared Services

Shared services are a fundamental tool for back office cost management and for ensuring consistent quality services across multi site organisations. Sourcing Advisory have helped organisations through the lifecycle of shared services; from strategy and design, through improvement to selective/ complete outsourcing and also through creation/ extension through in-sourcing.

A particular challenge for many organisations is finding the right mix between services to source in house via a shared service/ centre of excellence model and those to source externally. With a sourcing focus that is not purely based on outsourcing, Sourcing Advisory is ideally place to help with the evaluation and implementation of such solutions.

"Ensuring that day to decisions reflect the clients best interests"

Systems and ERP

Sourcing Advisory have helped negotiate and programme manage multi million pound transformation programmes involving the implementation of major systems and ERP solutions such as SAP.

Major systems and ERP projects and programmes are extremely complex and challenging, there is almost invariably a need for a specialist systems integration partner to support the delivery. As an independent specialist Sourcing Advisory can ensure that risks are understood and managed and day to decisions reflect the clients best interests. In addition to project and programme management capability we also bring:

  • Wider business transformation experience to ensure an appropriate continuing focus on business benefits delivery
  • Commercial negotiation and contracting expertise
  • Ability to source and integrate systems implementation as part of a wider delivery model whether internal/ outsourced/ mixed delivery
"Possible even where contract terms for exit have been extremely limited"

Insourcing

Outsourcing deals can become ineffective or uneconomic over time for many reasons, not least where there has been either inadequate upfront design or there has been a “turn the handle approach” rather than a focus on ongoing partnership.

Often an independent assessment and negotiating an agreed improvement plan can be the easiest route to turnaround struggling outsourcing relationships. Where this can not be achieved, Sourcing Advisory have helped a number of organisations to bring their outsourcing arrangements back in house and to implement either new outsourcing/ co-sourcing/ internal delivery models. This has been possible even where contract terms for exit have been extremely limited and without paying significant termination for convenience/ penalty charges.

"Experience in multiple delivery models and deal types"

Offshoring

Off-shoring has become an increasingly common goal for many organisations to secure financial savings through labour arbitrage. Other than for the largest organisations with a strategic objective to build a brand/ base in low cost locations, we have helped organisations achieve this goal most often through either:

  • Implementing shared services using/ expanding on existing internal low cost operations and/or
  • Outsourcing to delivery partners providing services from low cost locations

Although major cost reduction may be a key goal the wider potential benefits/ risks of these models need to be properly considered including confidence over service and confidentiality, political, exchange rate risks and future flexibility. Sourcing Advisory’s experience in multiple delivery models and deal types is a key support to developing and negotiating successful arrangements.