A good transaction is a win-win arrangement which meets the sourcing objectives of the client, yet enables the suppliers to earn profit and invest in the future. Neither side can hold all of the cards.
Billions of dollars of outsourcing transactions are executed each year. Suppliers are experts in doing these transactions and implementing them. However, clients may execute only a few of these transactions every few years. We help level the playing field. A small mistake in these transactions can cause significant problems over the term of the deal. These transactions should not be entered into lightly and must consider flexibility and change that will happen over the term. We develop and implement a communications plan to keep all interested parties informed.
Our proven process evens the playing field and puts the client in control. This enables fair competition, optimizes the value for the parties, and minimizes issues once the contract is signed. Our collaborative process encourages all parties to contribute, developing the optimal solution for the client. Our data driven approach enables clients to make decisions based on accurate data and actual pricing. Our financial skills help the client determine the true cost of the service, the proposed costs from the supplier, and the economic case for the solution. This includes sensitivity analysis to understand the affect of change on the financials over time. It is important to include the true cost of sourcing to understand if the transaction is the right decision. Sometimes the best deal is one that is not executed because the business case is just not there.
We are expert negotiators. Our skilled advisors all once worked for the suppliers and we understand each side’s interests. This enables us to ensure that the client is given a market-based contract that will last over time and allow for flexibility for change. The transaction must also consider exit strategies, transition, and options for growing or reducing the size of the services as well as making sure the pricing remains competitive.
During the transaction we assist the client in preparing for the transition. This includes creating and implementing a governance organization, and a joint transition plan with the supplier(s).