Selection process
Selection of preferred sourcing suppliers and solutions is a key step in making a sourcing strategy come to life. However, most organizations deal only infrequently with the specialized outsourcing market. Hence they often do not have the requisite internal expertise to deal with the challenges of supplier selection.
In our experience, the key is to understand the level of prescription required in the 'statement of requirements' and how this will influence the variety of the proposed solutions and the eventual contract. While the requirements must be clearly defined and closely aligned with the business needs, it is usually impossible to specify exactly all aspects of the service required.
Instead, careful consideration must be given to the level of creativity required from suppliers in defining a solution. Introducing this potential level of ambiguity in turn requires clear frameworks for comparing and assessing alternative solutions and suppliers including:
- business value, benefits and cost saving
- delivery of business transformation and step-changes in performance
- service quality and skills transfer
- flexibility to accommodate business change during a contract.
PA is a leading provider of independent outsourcing advice. Our independence makes us trusted advisor on supplier selection to many national and international corporations, and public sector organizations. We have shaped some of the largest outsourcing arrangements in the world and are advising on three of the largest arrangements currently being developed. We maintain this position by:
- ensuring that our clients make informed decisions based on the objective, fact-based guidance and logically structured arguments we provide
- avoiding conflicts of interest: we jealously guard our independence from all suppliers in the IT supply chain; the final decision always rest with our clients
- developing a holistic and balanced assessment of each solution by applying weighted evaluation criteria defined by all key stakeholders
- establishing a level commercial playing field through formal communications to provide equal opportunities for suppliers to understand the service required, and to provide details of their capabilities and solutions
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