At the onset of Outsourcing some 30 + years ago, Outsourcing was used more as a business tactic aimed at reducing Operational costs.As business needs and challenges became more and more complex and demanding, Outsourcing evolved in to a business strategy that now goes beyond providing cost savings – it has become a competitive necessity.
Global sourcing needs get more and more complex, sourcing providers and buyers do not always have the resources, time or skill to lay down the ground work before engaging in an outsourcing agreement.
The tasks required to make a sourcing deal successful are usually those that are done prior to engagement like sourcing needs analysis, proper provider Identification, proper and less costly RFP process, and understanding of the sourcing provider, among others.
Successful completion of these initial tasks is what determines the failure or success of an outsourcing agreement.
Vendors and providers both need the expertise and skill required to effectively guide them through this rigorous process of pre engagement in outsourcing. But the truth is they don’t always have these skills and expertise or even the resources.
Successful sourcing engagements need an unbiased and objective evaluation of both provider and buyer without the internal Organizational politics and internal gaming involved.
Most Organizations who understand the complexities of Outsourcing understand that it is important to have unbiased information on their sourcing partners, and this gives several reasons why third party intermediaries(consultants, Advisors)are a very important part of an outsourcing program.
These reasons may include Lack of knowledge about sourcing (buyer), large or complex outsourcing activity, need to get value for price, among other reasons.
The benefits of working with third party intermediaries is in itself outsourcing that comes with its very own set of values and benefits. Outsource buyers always want to get their deals right first time; it is more expensive to walk out of a bad sourcing deal than to not source at all. To get this right they depend on Organizations who have expertise in global sourcing to provide information on their choice of vendors, aid in formulating RFP, structure sourcing contracts, streamlining the sourcing process, drawing SLA’s and managing the whole sourcing process.
More than a third of the Global outsourcing contracts have been handled under the guidance of these firms. Forty-seven percent of such deals are being executed under the guidance of sourcing advisors, according to a study. Sourcing managers who have led successful outsourcing programs openly acknowledge their success to such sourcing management consultants.
This is the value proposition that Collins Consulting International brings to the Outsourcing Industry in Kenya.
We work with Outsourcing providers in enabling them to effectively, and successfully undertake sourcing deals of global magnitude.
According to the Black Book of Outsourcing (Brown-Wilson Group) 2007 survey, in the years leading to 2007, most buyers went through the process of vendor selection alone, but later regretted not using qualified consultants. In 2011 that trend has changed and more buyers are now using qualified third party consultants to effect their Sourcing strategies.