STRATEGIC SOURCING MODELS

Whether it is IT outsourcing or business process outsourcing, the decision is increasingly complex with the introduction of automation and cloud-driven solutions. Traditional strategic sourcing processes are being disrupted by technologies that are designed to replace human support models. As such, the drivers for sourcing have shifted from simply weighing cost savings to seeking best-of-breed strategic sourcing solutions, value-based services, flexible pricing, and increased customer satisfaction. As a result, it is easy to make the wrong sourcing decision. Our strategic sourcing consulting services address this need by providing support across the entire sourcing lifecycle from strategy, provider selection, implementation, and governance.

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STRATEGIC SOURCING STRATEGY CONSULTING

We understand what is needed to improve operations through strategic partnerships and diversified sourcing solutions.

Our breadth and depth of experience navigating the complex environment of managed services transactions helps our clients to optimize IT operations and business processes. Through designing and structuring the right mix of technology, services partnerships, and governance, our clients are able to go beyond cost cutting to achieve their strategic business objectives.

Our strategic sourcing consultants and procurement advisors define sourcing strategies that establish a business case for change, identify sourcing opportunities, and evaluate partner capabilities that will support future requirements. We take a holistic view of the service provider landscape based on our deep understanding of global sourcing solutions, industry needs, provider capabilities, procurement strategy, and emerging technology trends. Our recommendations balance both long term strategic goals and short-term tactical priorities grounded in an understanding of our clients’ vision, key business drivers, and constraints. We then prioritize the client’s requirements to develop a roadmap with recommendations, milestones, and timelines for implementation.

SOURCING HEALTH CHECK

SOURCING STRATEGY DEVELOPMENT

PROVIDER CAPABILITIES ASSESSMENT

PRICE BENCHMARKING

CONTRACT OPTIMIZATION

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STRATEGIC SOURCING TRANSACTION CONSULTING

Our services extend beyond the selection of sourcing partners. Our procurement advisors also establish the best deal structure for our clients.

In today’s business environment, there are many types of agreements with a complex array of contract terms and provisions. Although having choices can give the client leverage, it can make these agreements difficult to understand and a challenge to ensure results.

Our contract advisors negotiate strategic relationships that create long term value for the enterprise. We structure the entire transaction to meet each client’s unique goals. We also assess existing contracts to ensure that clients are getting the full value of those agreements. Perhaps most importantly, considering today’s heightened regulatory environment, we ensure that our clients remain compliant and minimize risk.

Our strategic sourcing consultants provide clients with an structured methodology for the selection of service providers and minimizes misaligned expectations between the client and the supplier. Our strategic sourcing consultants work closely with our affiliate law firm, Avasant Law, to negotiate contracts that reflect our client’s objectives, constraints, and risk tolerance. We provide the technical expertise to structure master services agreements, develop statements of work, design performance criteria, and determine pricing. We ensure that the client’s delivery strategy, performance and business terms are properly captured in a contract that is realistic and enforceable.

CONTRACT OPTIMIZATION

SOFTWARE LICENSE OPTIMIZATION

PROVIDER EVALUATION AND SELECTION

DUE DILIGENCE

CONTRACT DEVELOPMENT AND NEGOTIATION

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STRATEGIC SOURCING IMPLEMENTATION

Awarding a contract is only the beginning of the relationship between the client and service provider.

Successful outsourcing relationships involve change management that enables providers to meet their requirements while allowing midcourse corrections when needed. However, many relationships never fully meet expectations. Too often, the service implementation process is undisciplined, and miscommunication is the rule. There are poorly defined roles, KPIs, and expectations.

Our sourcing implementation consulting services help clients navigate the complexities of provider relationships. Our strategy roadmap details the steps necessary to realize a flourishing environment capable of managing critical priorities. One of our first areas of focus is on human capital and internal organizational culture. Our sourcing consultants assist clients with integrating a team of internal retained resources with both new and existing service providers. Our transition planning and execution oversight services mitigate any disruption to the business. In order to realize long term goals, we develop a roadmap to achieve high quality governance and oversight. This approach reinforces the responsibilities of each party and ensures that the requirements of the contract are being met.

TRANSITION PLANNING AND EXECUTION

RETAINED ORGANIZATION DESIGN AND TRANSITION

PROGRAM IMPLEMENTATION AND OVERSIGHT

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STRATEGIC SOURCING GOVERNANCE

Poor execution and lack of ongoing governance are the primary reasons strategic goals and objectives are not met.

Organizations face challenges while executing their sourcing contracts. As a result, over 80% of all organizations today fail to successfully manage such mechanisms, and as a result, fall short in achieving their goals and objectives. Effective governance requires a proactive, process-based approach that measures progress and performance.

Avasant supports clients throughout the lifecycle of their partnerships to ensure financial results and operational improvements are realized. We work with internal stakeholders and external service providers, creating a formal governance environment. Our governance approach comprises a robust program management process to foster alignment and track progress. Our governance consulting includes formal management of scope change and impact, tracking of contractual commitments and deliverables, and risk management. Our comprehensive solution ensures sourcing strategies are executed as planned in full alignment with the business objectives.

OPERATIONAL ALIGNMENT

PROGRAM GOVERNANCE

BUSINESS VALUE REALIZATION

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