13 Insightful Questions to Ask in Your Outsourcing Business Case, Alsbridge Releases Report

One of the toughest jobs in outsourcing is tracking the impact various changes may have on your outsourcing business case. Knowing what these changes are and how to best manage them will make a meaningful difference on your business case, according to Alsbridge Inc., a benchmarking, sourcing and transformation advisory firm. The latest report by Alsbridge spells out thirteen questions that outsourcing buyers need to ask in their outsourcing business case in order to be better prepared for the potential changes and hence have a more successful business case.

“What happened to the savings promised in your outsourcing business case?” is a question that is often raised by the higher management, twelve to eighteen months post signing the outsourcing contract.  In order to ensure you have the right answer to this question, you should anticipate any potential changes in your outsourcing business case by proactively asking questions related to the following areas:

1. Addressable Costs
2. Inflation rate
3. Foreign Exchange Rate
4. Growth Rate
5. Corporate Overhead
6. Retained Staff
7. Downsizing
8. Transition
9. Provider Under Bid
10. Pent up Business Demand
11. Inspecting Invoices
12. Contract Obligation and Delivery Management
13. Rebadging and On/Offshore Mix

Alsbridge Inc., CEO Chip Wagner says, “The outsourcing business case should include the financial impact from any clauses that were agreed to in negotiations that would alter your updated outsourcing business case as well as methodically taking into account any changes in assumptions that would have material impact on your bottom line.”

“There are a number of actions and forces – some you can control and others you can't – that can significantly alter the savings, quality improvements, and capability uplift you planned to achieve in your outsourcing contract,” says Dieter Thompson, president, Alsbridge. “Knowing what these changes are and how to best manage them will make a meaningful difference on your business case going forward.”

Rarely do we ever find an environment totally static. Therefore to be better prepared for tackling the potential changes affecting your outsourcing contract, ask the above 13 questions in your business case. For complete details on these questions, download the full report 13 Insightful Questions to Ask in Your Outsourcing Business Case.

About Alsbridge Inc.

Alsbridge is a global consulting firm that helps companies transform and optimize the way they purchase, manage and leverage technology and business processes.   We have over 175 team members on 4 continents serving over 200 clients a year including more than 40% of the Fortune 500.  Alsbridge has helped hundreds of companies reduce costs and get more value from their vendors.  Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your service providers.  Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, network carrier services, hardware and software, application support and development, business processes and cloud services.

EDITORS/WRITERS: Journalists interested in covering the above topic or interviewing one of our SMEs please contact:

Scott Tims
Office: 214-378-7970 ext. 278
stims@thepointgroup.com
www.alsbridge.com