Outsourcing Making the right outsourcing decisions - Davies Consulting - Davies Group
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Davies Consulting Outsourcing Making the right outsourcing decisions Expert input to help shape your outsourcing strategy and tactics davies-group.com/consulting @DaviesConsultng DaviesConsulting
Davies Consulting | Making the right outsourcing decisions Rethinking the rationale for outsourcing Rethinking the rationale Business leaders are no strangers to outsourcing, nor the fundamental reasons for doing it: driving down costs for high-volume repetitive Our Approach tasks and accessing specialist skills rather than acquiring or developing them in house. Our Solutions In today’s competitive landscape, those reasons remain just as compelling. Businesses must navigate the complex path between responding to long-term trends around customer expectations and addressing short-term imperatives to open new channels and find efficiencies: Why Davies Consulting? outsourcing fits in each. But in recent years, the case for outsourcing has begun to shift towards other vital attributes: flexibility and continuity. The Five Pillars Our Clients & Testimonials New models, new opportunities The emergence of new outsourcing delivery models, such as using the talents of gig workers to enhance customer service, has led to a rethink of what tasks and services can be outsourced. At the same time, a wealth of new business process outsourcing (BPO) providers have entered the market, offering on-demand models instead of the inflexible monolithic contracts that characterised many older managed service relationships. These approaches were already gaining ground in every sector when the COVID-19 pandemic arrived. Overnight, organisations had to adapt their ways of working. Some had to cope with soaring demand, far beyond normal seasonal peaks, while capacity was shrinking. The need for a more flexible operating model had never been more apparent – putting a fresh focus on how outsourcing can be used to build resilience and reduce risk. The Time To Act Is Now Whether your priority is driving greater value from existing relationships, finding partners that can offer a higher quality service or making more strategic use of outsourcing across the business, there is right now a major opportunity to be gained through revisiting your outsourcing approach. We are ideally placed to help you make the right decisions. 2 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Our Approach Rethinking the rationale Our outsourcing services are based on applying our experience to help our clients make the right decisions. Our Approach Our expert team bring a robust commercial focus to the sensitive issues around outsourcing. We’ll help you benchmark current provision, explore the merits of different models and providers and – when you’re ready to act – can support you throughout the procurement and Our Solutions transition process. Why Davies Consulting? The Five Pillars What, where, who and how? Our outsourcing projects typically start because clients are facing big questions: Our Clients & Testimonials • What activities can you outsource and what should you outsource? • What’s the best way to deliver these services – in-house, onshore or offshore, or a combination? • Which locations (where) and providers (who) should you be considering? • How much more can you save – and how much more can you gain, in terms of sales, loyalty or simple satisfaction, by improving the customer experience? For some, the need is for focused insight on a single issue: a potential change in provider or switch to offshore. For others, there’s a bigger picture, like working out how outsourcing could help you achieve your customer experience vision – what we call your North Star – or how it will fit within a new operating model. Whatever your question, we’ll work with you to understand your priorities and concerns, and then gather a range of evidence to inform our recommendations. 3 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Turning strategy into action Drawing on our team’s extensive first-hand experience procuring and managing outsourcing relationships, we can advise you on procurement, Rethinking the rationale transition and supplier management. Our Approach For instance, we’ll help you run a fair and transparent RFI and/or RFP process, using our knowledge to accelerate the process wherever possible. Our Solutions Though our wide-ranging experience means we know the outsourcing market exceptionally Why Davies Consulting? well, we are wholly independent of providers. That means our recommendations are based The Five Pillars on what’s best for your business and the issues you’re seeking to address. Our Clients & Testimonials At home with new delivery models The outsourcing market has evolved rapidly in recent years, as providers have embraced remote working and gig working to expand their available talent pool and introduced on-demand services that give their clients greater flexibility. That has meant those providers have already had to adapt processes to manage and support a dispersed workforce – the challenges that organisations with in-house teams, now working remotely, are still grappling with. Our team have worked with a number of these specialist providers and advised some of our clients on how to harness gig workers to add a new dimension to their customer experience. We’ll cut through the noise to help you understand the real opportunities – and can support you in setting up the right contracts. 4 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Our Solutions Rethinking the rationale Our outsourcing capability is used in five key ways: Our Approach Our Solutions Outsourcing Outsourcing Procurement Transition Supplier Why Davies Consulting? Advisory Strategy Management The Five Pillars Each can be delivered as a standalone service, providing input and expertise where and when you need it most. Alternatively, they can Our Clients & Testimonials be combined, in a long-term project, beginning with advice or strategic input, then – dependent on your in-house capability – leading or supporting you through the procurement process for a new contract. Use Cases Advisory Strategy Procurement Transition Supplier Management How do we ensure we Exam What is the expert / What’s our How do we land Who should we use? get the best from the deal Question market view on...? BPO strategy? the change? and reduce the risk? • Market / supplier • Outsourcing strategy • Define Business • Transition planning • BAU Governance assessment • Case for charge requirements • Governance • Deal / performance • Local assessment • Business case • Commercial models • Programme optimisation • Benchmarking - • Location strategy • RFX process Management • Contract management Pricing • BPO operating model • Negotiation strategy • Handover strategy including ongoing • Benchmarking - • Technology to support • Contracting support • Exit strategy support benchmark services Services performance strategy (incumbent) • Benefits tracking & • Commercial model administration Benchmarking / • Ongoing supplier man- Design agement • Performance improvement • Cost improvement Effective supplier Management identifies continuous improvement opportunities and strategy updates 5 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Advisory Rethinking the rationale A one-off service designed to help you address specific questions about your current outsourcing relationships or future direction. We’ll gather the evidence and present you with actionable recommendations around key business decisions such as: Our Approach • Onshore or offshore – and if the latter, where? Our Solutions • Which of your current suppliers offer best value, and why? • How does your existing contract compare in terms of performance, payments and penalties? Why Davies Consulting? • Where can you improve performance or reduce cost – and what’s the trade-off? The Five Pillars • Could alternative delivery models, or suppliers, offer additional benefits or enable you to outsource further tasks? Our Clients & Testimonials Strategy Our expert team will work with you to shape your outsourcing strategy. Working within your parameters, we’ll explore the most effective ways to meet your goals and develop a fully costed case for change, covering: • The processes and tasks that can best be outsourced • The types of partners and models that can help – including gig workers and other emerging models • Potential locations for offshore partners if appropriate • Recommendations on technology to support the strategy • Analysis of the impact on in-house staff – focusing on how they can be freed up to meet other crucial goals Procurement The point where strategy moves into reality. Benefit from our experience as you plan and run the procurement exercise – and discover why prospective suppliers repeatedly praise us for the fair and transparent approach we take. We can support you by: • Defining and refining the business requirements, so you procure exactly what you need • Accelerating the production of essential documentation such as RFIs and RFPs • Shortening, in some cases, the procurement process by providing you with a long list of potential suppliers based on our prior knowledge – so removing the need for an RFI stage • Advising on assessment criteria and participating in the selection process • Helping you through contract negotiations to secure best value 6 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Transition Rethinking the rationale We’ll take the stress out of transition to a new outsourcing partnership. Our team’s knowledge will help you prepare the business fully, so that the new contract is best placed to deliver value from day one. Typically, we focus on: Our Approach • Developing a comprehensive and realistic transition plan Our Solutions • Ensuring the right governance and programme management structures are in place • Supporting you with internal change and communications – particularly for first-time outsourcers Why Davies Consulting? • Overseeing a smooth exit from any incumbent with appropriate knowledge transfer The Five Pillars Our Clients & Testimonials Supplier management Due to their scope and duration, outsourcing contracts are different from project-based supplier procurement – and the management is a different challenge too. For businesses that are new to outsourcing, a guiding hand can be invaluable, particularly in the first few months. Our team can help you by: • Monitoring supplier performance against agreed indicators • Forming part of the governance arrangements • Managing the supplier directly on your behalf • Identifying continuous improvement opportunities 7 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Why Davies Consulting? Rethinking the rationale Our Approach We are experienced We offer a comprehensive solution Our Solutions Our team have a wealth of first-hand experience in procuring and Our approach doesn’t end with a series of recommendations: Why Davies Consulting? managing outsourcing relationships across a range of sectors we also offer direct support through the complex processes The Five Pillars and business functions. We’ve not only supported clients to of procurement and transition. We’re a part of Davies, a develop their outsourcing approach, but also bring the insight specialist professional services and technology firm, working Our Clients & Testimonials that comes from sitting client-side at the negotiating table. in partnership with leading insurance, highly regulated and That means we can help secure best value and build mutually global businesses. We’re a global team of over 4,000 beneficial supplier relationships. professionals providing specialist solutions to more than 750 highly regulated and global clients, helping them to improve service, grow and win. We are independent We’re fair and transparent Because we are not attached to any outsourcing partners, you Whether examining the market on your behalf, comparing can be sure that our advice is based on helping you make the in-house performance with outsourcing benefits or advising right decisions for your business and your customers. on a procurement exercise, we pride ourselves on being fair, transparent and led by the evidence. That means you get robust recommendations and a process that everyone can follow and trust. 8 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions The Five Pillars of effective business transformation Rethinking the rationale The impact of COVID-19 has compelled businesses in all sectors to take a fresh look at their operations, increasing agility, improving CX, Our Approach and streamlining processes. Our Solutions Our consulting-led services gives clients the support and rapid, relevant insight they needs to change and grow. Actionable insights is one such opportunity but we know that our clients are exploring several others. To support them, we’ve developed a selection of consulting-led Why Davies Consulting? services that also deliver rapid, relevant insight around: The Five Pillars Our Clients & Testimonials CX Operating Insight & Outsourcing Intelligent Digital CX & Model Analytics Advisory Automation Technology To follow your North Applying analytics t o Making more strategic Identifying where Selecting the right Starvision of the CX our understand thevoice use of outsourcing intelligent automation technology,tools, clients want to offer of the customer –and to lower costs and can enhance the platforms and delivery generate actionable increase flexibility CXand streamline models to achieve insights from it processes our client’s goals Each service is based on the same core approach: we examine where our client currently is and where they want to get to, providing an initial high-level diagnostic and set of recommendations – typically within three weeks from starting to work witha new client. 9 davies-group.com/consulting
Davies Consulting | Making the right outsourcing decisions Clients we have worked with Rethinking the rationale Our Approach Our Solutions Why Davies Consulting? The Five Pillars Our Clients & Testimonials What our clients say “ Working together with Davies has ensured Birmingham City Council can deliver the maximum benefit for citizens. The Davies team brought some novel thinking and best practice tools and techniques to review the outsourced call centre contract. The subsequent contract negotiation was robust and challenged the outsource service provider to deliver value for money, improved governance and a better-quality service. Chris Gibbs, Assistant Director of Revenues and Benefits Birmingham City Council 10 davies-group.com/consulting
Get in touch Wherever you are on your outsourcing journey, Davies Consulting can help you take the next steps. Contact us for an initial conversation to discuss your current situation. Simon Dillsworth Michael Anderson Managing Director Vice President (North America) Davies Consulting Davies Consulting +44 (0)7919 115152 +1 647 929 9002 Simon.dillsworth@davies-group.com michael.anderson@davies-group.com Davies Limited Registered Company No. 06479822 Registered in England and Wales Registered Office: 7th Floor, 1 Minster Court, Mincing Lane, London, EC3R 7AA Copyright © (2020). All rights reserved. The Davies logo is a registered trademark and is used under licence. DISCLAIMER: This document is intended for general informational purposes only, does not take into account the reader’s specific circumstances and is not a substitute for professional advice. Readers are responsible for obtaining such advice from licensed professionals. The information included in this document has been obtained from sources we believe to be reliable and accurate at the time of issue. The issuer disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this document and any acts or omissions made based on such information. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical photocopying, microfilming, recording, scanning or otherwise for commercial purposes without the written permission of the copyright holder. davies-group.com/consulting
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