HAMILTON BAILEY

The flexibility of an existing outsourcing contract to meet rapidly changing business needs can cause major concern. There comes a point when the only way to move forward is to negotiate major contractual amendments to fully accommodate changing business demands. Careful preparation for such a transformation is essential if you are to achieve the desired results – a pragmatic and practical repositioning at all tactical and strategic levels, set against an true understanding of your business requirements and the market and service provider capabilities.

Areas for careful consideration include:
• Your business objectives and the service providers objectives
• The service providers economic model
• Contract suitability to help or hinder change
• How changes will affect cost and value for money, and how it should be
    effected
• Negotiating levers and opportunities

Contract Repositioning provides a pragmatic and appropriately forceful method of ensuring service obligations, contract documentation and business perceptions are brought back into line behind the objectives of the business strategy.

Deliverables will include:
• Differences between contracted and delivered services
• Customers’ service perception and value for money
• Financial model analysis with risks and benefits
• Service providers perspective of services and value for money
• Actions with anticipated benefits
• Plan with outline costs and timescales

The approach has 5 stages:
Stage 1 – Document review – contract, schedules, SLA’s and Financial model
Stage 2 – Perception review – interviews
Stage 3 – Analysis of service performance to establish value for money
Stage 4 – Prioritised recommendations and action plan
Stage 5 – Final discussions and workshop

Client responsibilities:
• Provision of service reports and commercials
• Provide access to contract documents, SLA’s, financial information, etc
• Participation of key staff in interviews and workshop sessions