AGILE DIGITAL SERVICES SOURCING: DEFINE > EVALUATE > NEGOTIATE > CONTRACT > TRANSITION
We believe the sourcing process is not just about finding suppliers for your services but more importantly to ensure that services are implemented and delivered. This is when benefits are delivered.
Our proven Flex/50 Agile Digital Services Sourcing process delivers an indicative business case within 3 weeks and typically delivers a negotiated, commercial contract within 20-26 weeks. We then manage an accelerated transition plan to ensure that the value proposition is delivered at the earliest possible opportunity.
Our unique agile process ensures that from the start, suppliers receive the contractual schedules and terms that will comprise the final contract. This rapid, transparent approach significantly improves service clarity, enabling detailed like-for-like evaluation across prospective suppliers. This reduces and mitigates the risk of change when progressing to supplier selection and transition. Throughout the process we heavily engage with the suppliers ensuring we get as many to the finish line as possible - thus providing the best selection or mix and match opportunity. The supplier signs the customers contract; the customer does not sign the supplier’s contract.
This process has been refined over the last 20 years where, as CIO’s and technology leaders, we have been responsible for the outcome of the sourcing process and been measured on the success of our technology decisions. Our team has managed IT services procurement projects, signing contracts worth over £1.5B and, equally important, managing the implementation and introduction of the services, releasing the benefits.
Our process comprises of following key elements:
Define > Indicative Business case: the initial assessment defines benefits that could be achieved and creates an indicative business case to continue with the Agile Digital Services Sourcing process. Catalysts for change may be reduction of costs, restructured services from internal to external or questioning the value of the existing service provider.
An indicative business case can be delivered in 2-3 weeks at a fixed price, price adjusted if a sourcing project is initiated.
Evaluate > Live Market Feedback: we create a wireframe digital services contract, identifying key service requirements and engage with a small group of known suppliers to validate the indicative business case assumptions.
Typically, 4 weeks duration.
Negotiate > Supplier Engagement: we develop the digital services wireframe contract, identify target suppliers and run a strictly scheduled competitive supplier evaluation process. Consistent communication, process transparency and supplier engagement ensure that suppliers beginning the process normally end the process – de-risking the lack of sufficient competitive bids.
Contract > Supplier Selection: The best supplier or mix of suppliers that provide the best possible business outcomes are recommended for inclusion, following a thorough evaluation process. All offers must include transition and transformation plans that contractually commit to delivery milestones and therefore de-risk benefits delivery and underpin the business case. We focus on ensuring that these plans are practical, risk aware and can be delivered to support the business case.
Transition > Supplier Transition & Migration: we manage and help the customer deliver the transition and transformation plans, ensuring the business case is delivered. Our team is often retained by the customer to become part of the vendor management process on an ongoing basis. As with any service change there will necessarily be internal organisational change required. As part of the business case the organisational requirements will have been evaluated and designed to ensure an optimal supplier relationship and that ongoing contract management capability is retained.
Example of a recent engagement:
Project Driver: the business Board question: are we receiving value for money from our incumbent supplier?
Indicative Business Case: Identified likely improvement in value of digital spend if services were tendered - 3 Weeks
Evaluate: Identified 3 suppliers likely to offer better value services if competitive procurement process was initiated. Benefits indicated 10% reduction of annual costs and including a refresh of entire digital estate and architecture – 4 Weeks
Negotiate: 8 suppliers invited to tender, 6 joined the process. Process executed over – 16 week period
Contract: Selected supplier and signed contract – 2 weeks
Transition & Transformation: Project initiated to migrate or retire services from existing supplier, transition services to new supplier, create new services and transform entire estate and architecture. Duration 26 weeks – including Covid-19 lockdown of 12 weeks
Digital Benefits Realised: Provision of up-to-date modern architecture - SDWAN, new Cisco LAN devices, application services migrated to MS Azure Cloud, 0ffice/365, Service Desk Management, Managed Security Service and significant process automation
Commercial Benefits Realised: 26% reduction in digital spend, improved customer service, significant reduction of technical debt and flexible contractual terms of provision for an up-to-date, modern, digital, cloud-based architecture.