By Barbara DeGusie, Managing Consultant, Alsbridge, Inc.
David England, Managing Consultant, Alsbridge, Inc.


Chances are you have thought about outsourcing or shared services as a strategy to cut cost during these challenging economic times, but developing a clear business case for outsourcing can be painfully complicated. There are no simple industry-wide benchmarks, no easy ROI calculations and no cookie-cutter models for a successful client-provider relationship.

Rather than struggle with this complicated business issue, many executives avoid the process altogether, leaving significant cost savings potential on the table. Others decided to go-it alone, usually resulting in a tumultuous sourcing process that delivers less than stellar contract terms, a poor client/provider relationship and underwhelming savings.

Of course, neither of these scenarios is acceptable, so it is vital to ensure the efficient and successful execution of outsourcing or shared services arrangements - and for that you may need help.

In today's economic environment, outsourcing service providers have become very selective about where they invest their sales and pursuit budgets. Third-party sourcing advisors deal with service providers on a regular basis and make it their business to understand provider capabilities and new offers to the marketplace. Using this knowledge, advisors are better able to rally the right vendors to participate when responding to RFP, ensuring terms that are balanced and more likely to meet the goals of both the client and outsourcing service provider.

It takes advisors who understand complex outsourcing contracts to capture and correct imbalances that would place undue risks and burdens on the client and the long-term relationship. An advisor can coach and help navigate the many steps it takes to reach the mutual trust and commitment necessary for long-term success. Hiring a sourcing advisor can help clients avoid pain and bring the five benefits detailed in this white paper.