Our client wanted to deliver better customer service and climb up the industry league tables, while reducing cost. It decided to this through outsourcing. It wanted to deliver a suitable deal, without a high profile procurement and it wanted to do it at speed. David was engaged to accelerate the process and provide external challenge by delivering expert advice on elements such as strategy options for using outsourcing to transform, business cases, commercial models to support ‘transfer’ of risk and contracts.
We used our IP and expertise to deliver a number of workshops to share insights and tailored intellectual property. The first workshop codified typical approaches to transformation through outsourcing, and assessed them against criteria such as cost, value add and risk. This informed our client’s decision to select a high impact approach to transformation, with rapid transfer of responsibilities.
The second workshop provided good practice on commercial models, assessing them against the degree of risk ‘transfer’ – ensuring the outsource partner was incentivised to deliver upside value and guarantee performance. This covered a number of pricing models, and how they impacted partner motivation.
The next workshop covered examples of ‘call-off’ procedures and service definitions for contact centres. We presented a codification of contact centre services, where service levels on quality of service access, quality and outcome were ‘baked into’ a service catalogue and its pricing.
Our client was constrained to use OJEU-like disciplines in its evaluation method. It was concerned around the risk of an evaluation producing counter-intuitive results. We shared best practice with them, allowing them quickly develop a method closely aligned to their objectives and appetite for risk
Finally we assisted with business case construction. A key area of focus was the sizes and roles of (1) the retained organisation post-outsource and (2) the transformation programme organisation required to deliver the changes.
Our client announced a significant outsource transaction, covering c 2,000 personnel, adoption of extensive offshore facilities and transfer of UK based people and contact centre assets to a leading outsourcer. This allowed the UK workforce to be reduced by 1,500 people, with a run rate saving of £30-40Mpa.