Category Archives: Outsourcing

Is the strain of Brexit really behind excessive government contract extensions? 7 reasons to renegotiate your own agreement

Posted on by Allan Watton Free ebook download, click here!

The government is under a great deal of strain at the moment; Brexit negotiations are ramping up, the local elections have just been held, and the latest controversy with Russia is reaching boiling point. So, it’s not surprising to have regularly seen and heard the political opposition accuse the government of taking its eye off whatever ‘other’ ball they wish to point at. The one we’ve heard consistently reported on

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7 Outsourcing Contract Clauses to Avoid at all Costs

Posted on by Allan Watton 7 outsourcing contract clauses avoid at all costs

Outsourced relationships can sometimes be punctuated with opportunities for controversy. Among them, should you already be part-way through such a relationship, would be to ask yourself how much you trust your vendor, or for that matter how much they trust you. But ask this you must, for only once you know the answer can you then decide whether you did enough due diligence on your written outsourcing contract before you

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Insource or Outsource? 3 key steps to decide the best route

Posted on by Allan Watton insource or outsource

While large single supplier outsourcing relationships were all the rage a few years ago, we are definitely seeing a trend to either multi-sourcing or bringing services back in-house. The perception is that ‘in-house’ seems to be ticking the boxes On paper, the high-level business case often stacks up to recommend bringing services back in-house. After all, the perception is that all of the margin the vendor is making could be

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8 procurement tips to ensure that your project delivers the business case

Posted on by Richard Kerr project delivers the business case

Not every project can be handled in-house. There will be times when the resources, skill-sets and specific expertise of strategic suppliers will be needed and your business case will help you come to that conclusion. Once you have come to the conclusion that outside help is required to deliver your project, then how you go about successfully procuring and contracting for it becomes all-important. How you approach this will go

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6 Ways you could be inadvertently sabotaging your outsourced relationships

Posted on by Allan Watton Sabotage

When things go wrong in outsourced relationships, the parties will often scratch their heads, blame the other side and then look to escalate or resolve the situation that has brought them to this point. Escalation could mean anything from resorting to damages allowed for in the contract, through to legal action. Resolution may be proactively encouraged through your Intelligent Client Function (ICF) team or through instructing a third-party facilitator, such

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8 Core Elements to Assess Whether You Have an ‘Intelligent Supplier’

Posted on by Allan Watton 8 elements intelligent supplier

There are 8 core elements that go to determine whether a supplier has what it takes to be an ‘intelligent supplier’. Our experience of working on over 500 complex service delivery relationships has provided us with a great degree of insight into both sides of the relationship. Much of this work centres around bringing parties closer together by aligning their objectives, establishing where priorities and aspirations meet, and of course,

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Carillion Collapse; 8 Tips to Protect Your Company’s Interests

Posted on by Allan Watton company-liquidation

The Carillion story is big news right now. The announcement that the UK’s second largest construction firm is going into liquidation is bound to cause a media fuss, but in today’s political climate it has been supersized because this collapse appears to be being leveraged by a Labour Party reasserting its dislike for all public-sector outsourcing. The collapse of this outsourcing organisation has significant ramifications for both public and private

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Labour’s Plans to Nationalise PFI? 5 Steps to drive better value now, while we are all waiting

Posted on by Allan Watton pfi nationalisation

Since the revelations of the Labour Conference in September, analysts and pundits have been asking some important questions. They include, in this austerity lashed economic climate, where does Labour believe the potentially hundreds of billions will come from to pay for their plans for Britain, and would it benefit the country to go that way? We thought we should pull together some of the research on the subject and what

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Managing the Innovation Process – Do You Have An Intelligent Supplier? (Series: 5 of 9)

Posted on by Allan Watton innovation

Welcome to article 5 in our series of 9 on the vitally important, but often overlooked, subject of the ‘intelligent supplier’ – what to look out for, what behaviours to support and what to avoid when it comes to choosing and managing the strategic partners you’ll work with. So far we have covered the way an intelligent supplier would contribute to a client’s Business and Operating Strategy, how they evidence

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Intelligent Supplier – Evidencing Commercial Trust (Series: 3 of 9)

Posted on by Allan Watton trust

Welcome to the third article in our series on the collection of facets and intrinsic value of an Intelligent Supplier – what your supplier could be doing to ensure your relationship has a greater chance of success, and how you can identify whether they have this capability, capacity and foresight. Article #1 in the series focused on ‘Understanding, Supporting (and Challenging) the Client’s Business and Operating Strategy’, Article #2 was

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7 Reasons Why You Should Renegotiate Your Outsourcing Relationship

Posted on by Stephen James Handshake

Outsourcing contract renegotiations are on the rise. Around 75% of all existing outsourcing relationships are renegotiated at some point during their lifetime according to Gartner Research.  And contrary to what you might think, not all of these renegotiations are down to bad performance — contracts can be renegotiated for many positive reasons. Not only that, but contract renegotiation can be triggered either by the service provider or the client. The

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5 steps to make your KPIs smarter to achieve your business outcomes

Posted on by Allan Watton Graph and personage on white background.

I know I speak for all of us when I say that delivering business outcomes using external outsourcing or technology partners is really easy… Isn’t it? After all, you simply need to explain to your provider what you want to achieve, point them in the right direction and leave them to get on with it. Right? Err… maybe in an ideal world, but, as we all know, the reality of

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9 Steps To Transition From Single Supplier To Multi-Supplier Outsourcing

Posted on by Allan Watton Steersman on puzzle

An increasing number of organisations and institutions are exploring the benefits of moving from their large single-supplier outsourcing relationships to the multi-supplier variety. Gavin Hall has outlined that in his experience, which reflects our own, the enhanced value and specialist expertise, such as Cloud services, have strong evidence for such a move, but you need to have clear business reasons and understand the implications for all parties of such a move

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8 Questions to Determine the Root Cause of Poor Project Performance

Posted on by John King 8 Questions to Define the Root Cause of Poor Project Performance

To promote better productivity through more collaborative problem-solving it would be useful to shift perspectives in the outsourcing arena, so that when things go wrong people recognise that it’s not always the other person’s fault. Often issues are multifaceted, and the longer that they are allowed to build up, the more difficult it can be to establish the root cause of the problem – usually a good place to start

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Outcome-Based Pricing Model in Strategic Service Delivery

Posted on by Allan Watton quantifying outcomes

While the theory behind outcome-based pricing models is nothing new, the penchant for establishing relationships specifically based on driving true added value is certainly growing in popularity with both vendors and clients. The reasons for this are simple. With suppliers utilising their own resources and best practices, they have an opportunity to (a) bring some much needed fresh thinking to client service delivery innovation and options, (b) reduce the on-going

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Cloud Computing Procurement: 6 Steps to a Beneficial Outcome

Posted on by Richard Kerr Cloud Computing Procurement: 6 Steps to a Beneficial Outcome

Last week we revealed how all too many cloud computing contracts (and more specifically, Infrastructure as a Service (IaaS) agreements) result in completely unacceptable outcomes for the buying organisation. The key issue is typically a fatal misalignment between the buyer’s desired business outcomes and the terms of the agreement. You expect a system that can fulfill your specific business outcomes, but the vendor is tasked with providing infrastructure. That in itself

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Cloud Computing: Where Infrastructure as a Service (IaaS) Procurement Fails

Posted on by Richard Kerr Cloud Computing: Where Infrastructure as a Service Procurement Fails

We all know that cloud computing is becoming more and more relevant to public and private organisations. For most enterprises, the potential cost savings of moving infrastructure to the cloud are too big to ignore. However, as a relatively new form of outsourcing, cloud computing is not without its potential pitfalls. This is especially the case when it comes to procuring Infrastructure as a Service (IaaS). Many companies have found

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NAO’s Report on Transition and Termination Issues in Commercial Contracts

Posted on by Allan Watton transition termination contract

This is the final article in a series of seven that reviewed the twenty issues highlighted by the National Audit Office (NAO) in their latest report on emerging best practice in commercial and contract management. Our articles have grouped these issues under the same seven headings as the NAO report – Commercial Strategy, Commercial Capability, Market Management and Sourcing, Contract Approach, Contract Management, Contract Lifecycle, and Transition and Termination. This

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Outsourcing: 5 Mistakes You Must Avoid Before Choosing a Provider

Posted on by Allan Watton Outsourcing Mistakes

Outsourcing is a tempting proposition for any company that feels the strain of a bloated workforce and high service delivery costs. After all, the theoretical arguments in favour of outsourcing are compelling – you leverage the expertise of an external party, who are better qualified to deliver a more efficient (and less costly) service. Unfortunately, a theoretical benefit does not always translate well into reality. At Best Practice Group, we

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Early Outsourcing Termination? Save millions on your exit fees with these six questions

Posted on by Allan Watton

Wouldn’t it be nice if client-vendor relationships always followed a clearly defined path with all parties focused on doing their best to live up to the business outcomes they agreed to at the outset? I can almost hear you nodding and sighing with wishful thinking, but, as we all know, in the real world, major contractual relationships are quite often rife with miscommunication, hidden agendas and ambiguity. In addition, there

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