Managed Governance

Expect more from your partners and build better relationships

Managed Governance Services (MGS)

Organizations today are increasingly burdened with the complexity of third party governance and compliance.

Avasant’s Managed Governance Services (MGS) offers a solution for managing vendor portfolios to create a simplified, structured, and cost effective way to maximize sourcing value. We provide best practice processes, automation, and state-of-the-art technology to enable organizations to better manage relationships, improve alignment with business strategies and promote operational transparency. Implementation of our methodology and proven recommendations will significantly reduce the cost of governance.

Rapidly determine the potential value leakage in your organization’s global sourcing governance environment
Gain an understanding of current governance maturity and potential savings through alignment of best practices
Leverage Avasant Managed Governance Service (MGS) best practices and AvaSense cloud-based rapid assessment tool
Utilize insight from highly experienced consultants in sourcing governance and relationship optimization

Client Case Study

Increased transparency and alignment with third party vendors is increasingly difficult. One of the largest quasi-governmental bodies was experiencing this strain in governance capabilities. We identified core attributes missing from governance methods and partnered with them to establish their internal processes. Our services, supported by our proprietary technology tool, provides the client with access to real-time analytics, dashboards, and live support by a team of experts. The client was able to minimize value leakage, better manage risk, and focus on strategy.

Value Leakage Rapid Assessment

Outsourcing relationships can lose from 20% to 60%+ of their expected value due to poor governance practices.

Global sourcing is an increasingly risky endeavor with unprecedented vendor management challenges. Complex contracts and hybrid operating environments can, if not closely monitored, result in value leakage through a plethora of factors including inadequate governance, poor reporting, and communication breakdown. Avasant’s VLRA approach enables a quick, painless and affordable approach to identify exposures to value leakage in your outsourcing relationship(s).

Step 1: Planning
Step 2: Discovery
Step 3: Analysis
Step 4: Action

Are you receiving the full value of your sourcing contracts? View our VLRA PPT deck here.

Contract Management

Sourcing contracts over the years have become complex and lengthy.

Valuable information relating to day-to-day operations are lost within the plethora of clauses in service agreements. Pay as you use models of service are further complicating the ecosystem. Our Contract Management services, delivered by a team of sourcing experts, enable our clients to review and monitor the crucial components of their contracts. This ensures effective change management and compliance with deliverables, obligations, renewals, terminations and exceptions. Our methodology promotes consistency of service outcomes, governance discipline, and compliance at all stages.

Contract Administration
Contract Change Management
Renewals & Termination Support

Performance Management

Globally, over 50% of signed sourcing contracts are renegotiated before their term due to performance issues.

Managing vendors through service level agreements and performance indicators is essential to ensuring you are receiving full value from your engagement. Aligning these performance metrics with overall company and business strategy also is critically important. In order to measure performance, there must be a strategy in place. Avasant’s Performance Management service provides organizations with transparency and helps to align vendor management to business objectives and outcomes. Our service triggers alerts of any issues or conflicts across service level metrics, thus reducing value leakage and enabling proactive risk management.

Service Level Management
Milestone Management

Financial Management

Key drivers to sourcing IT and business process operations are to gain capabilities, optimize the business value chain, and reduce costs.

Monitoring the management of the financials associated with sourcing contracts is vital to achieving the business value envisaged during contract inception. Poorly managed sourcing financials leads to value leakage and erodes the expected gains associated with sourcing contracts. Avasant’s Financial Management services help organizations reconcile invoices, capture discounts and credits, and gain greater transparency in demand management and total spends across all vendors. This is achieved through a workflow-based approach to financial management, analytics and dashboards.

Invoice Management
Price Adjustments
Scope Change Analysis

Relationship Management

The capabilities service providers possess make them key strategic partners and essential for successful operations.

Managing relationships is the key to success in an increasingly complex outsourcing environment; business strategy –vendor strategy misalignment typically results in about 10 to 20% deterioration of the desired value. Fostering healthy and mutually beneficial relationships with your sourcing vendors is imperative. Avasant’s Relationship Management services provide organizations with increased transparency in vendor relationships. Through communications governance, our experts promote better vendor relationships.

Vendor communication and governance management
Risk and issue management

AvaSense Governance Tool

AvaSense™ is Avasant’s proprietary SaaS-based governance tool that enables our Managed Governance Services through integration of best in class processes, workflow automation, and highly configurable analytics dashboards and reports. Designed for complex ITO/BPO service agreements with multiple towers, vendors and stakeholders, some of the key features of the AvaSense™ tool include:

Task & role based issue, risk, and action item management and governance features
Contract repository with document management for all contract, financial and performance data and documents
Audit trails to manage compliance

Quick and easy access to vital sourcing contract attributes
Configurable analytics dashboards and reporting
Configurable, automated vendor management and governance process workflows, alerts and notifications