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Cultivating cross-border relationships
The steps a gymnast takes on the way to launching herself onto the vault set up the aerial techniques that will bring the highest scores from the judges. Alignment of each action is crucial. The efforts a company puts into outsourcing strategy, negotiation, and transition serve much the same purpose. Most companies use a third party or outsourcer. Whether small and local, or large and global, there is a common bottom line for each relationship: "Are the services performed well at a fair price? Successful companies have found that work done upstream during the strategy, negotiations, and transition to set the foundation can impact the outcome greatly in terms of price and service delivery."
Deloitte’s Outsourcing Advisory practice blends global reach with deep outsourcing and functional experience in crucial areas like finance, procurement, information technology, change management, tax, shared services, and offshoring and reshoring. We work with hundreds of outsourcing vendors worldwide and stay current with their capabilities and performance. This understanding of the vendor landscape can offer valuable insights into important market trends, the opportunities, and the challenges companies may face going forward.
We align the elements in each phase of strategy, negotiation, transition, and vendor management to help deliver an environment where the services are structured to deliver effectively at a price that is both advantageous to the buyer and remain profitable for the vendor.
Ranked for four consecutive years on the list of The World’s Best Outsourcing Advisors by the International Association of Outsourcing Professionals, we act as a strategic advisor to help companies navigate the complexities of outsourcing. This includes developing an outsourcing approach and designing the RFP, relationship management, and developing fit-for-purpose outsourcing strategies.
As traditional outsourcing becomes obsolete, disruptive outsourcing is coming into its own. Our 2018 outsourcing survey of more than 500 executives from leading organizations indicates that disruptive outsourcing technology solutions - led by cloud and automation - are fundamentally transforming traditional outsourcing.
Outsourcing Advisory services
- Strategy. We can translate a company’s executive vision and priorities into an actionable outsourcing strategy and specific related actions to facilitate execution.
- Negotiation. We develop requests for information and proposals, as well as developing, negotiating, and executing effective agreements with third-party vendors, emphasizing balance between service quality, operational outcomes, and pricing.
- Transition. We establish a transition plan that addresses governance, stakeholder buy-in, change management, and other factors that can lead to effective and sustainable outsourcing over time.
- Vendor management. We help clients establish a new vendor management function, or refine an existing one, so it can drive sustained, efficient service quality.
Potential bottom-line benefits
- A unified approach to outsourcing that aligns with business objectives and operating model
- Brand differentiation and competitive advantage
- Simplified navigation and of the vendor selection and contract negotiation processes
- Effective change management and implementation plans, processes, and resources
Operational efficiency and cost reduction
- Stronger vendor relationship management and governance
Alignment during the outsourcing strategy, negotiations, and transition sets the foundation to deliver services well and at a fair price.