Benchmark Your Outsourcing Relationship for Strategic, Operational
and Cultural Effectiveness
Many attributes affect a successful outsourcing relationship. Price dominates the negations, but other factors drive the health of the buyer/provider interaction after the contract begins.
To judge and then improve the health of outsourcing engagements, Alsbridge developed the Market Reality Assessment (MRA) service and supporting analytical systems. Based on the experience of Alsbridge consultants over hundreds of negotiated and managed outsourcing engagements, the MRA establishes a benchmark for your unique situation. The MRA relies on a desired “landing zone” where most successful outsourcing relationships generally score. The goal of the MRA service is to move the various attributes of the relationship closer to the landing zone to improve the probability of overall success.
The landing zone is the area in which the outsourcing arrangement has the best chance of long-term success with value creation for both the customer and the provider.
Evaluate 150 Attributes for Optimal Performance
The service evaluates an outsourcing agreement against ten best practice categories and applies a rigorous, comparative assessment on over 150 contract attributes. Each attribute is scored based on industry references and the Alsbridge MRA database. Weighted values in each category vary based on functional areas, allowing for differences between information technology and business process outsourcing.
Attribute that drive the success of engagements fall within these categories
1. Scope
2. Flexibility
3. Pricing
4. Service levels
5. Legal terms
6. Business terms
7. Transition
8. Termination clauses
9. Governance
10. Relationship management
The assessment aims to build the most appropriate agreement between the buyer and seller resulting in a win-win, sustainable relationship that recognizes the power of aligned goals and incentives.
The MRA gives transparency for client executives to quickly understand and focus upon key areas needing improvement. The assessment helps customers at any stage of the outsourcing process—pre-close, mid-term or renegotiation phase—and aids both sides in communicating more effectively.
For companies already in the outsourcing cycle whose contract may be up for renegotiation, the MRA improves the process by showing the company where to focus negotiations. Most contracts fall short of a buyer’s expectations because they do not include the attributes which this tool measures. The MRA has been useful to buyers considering outsourcing because it gives them access to trends proven successful over time.
Developed and Supported by Experience Outsourcing Consultants
Alsbridge is the award winning global advisory firm, providing unbiased advice and assistance on outsourcing, shared services and offshoring.
Alsbridge consultants bring extensive vertical industry expertise and a practical knowledge of all areas within information technology and business process outsourcing.
The firm’s proven methodology incorporates proprietary collaborative sessions, bringing together executive teams from both the client and the provider in an environment that fosters collaboration. Alsbridge supports its recommendations and assistance through significant investments in proprietary benchmarking and ongoing research within the industry.
For a free estimate of the MRA service, contact us at 214.696.6410 |