Outsourcing Governance

A proxy bid can be an effective way to cost-effectively analyze the pricing of a discrete set of processes or services. It can be applied to a wide range of scenarios, either as a pre-sourcing tool to define options and evaluate proposals, or as part of an end-of-contract initiative to gauge existing services and consider next steps. Increasingly, top-performing organizations are incorporating proxy bids into their toolkit of sourcing management capabilities.

In today?s difficult economy, executives managing sourcing relationships face the following paradox: How to optimize cost efficiency and drive savings while, at the same time, maintaining a focus on addressing long-term business needs, fostering innovation, and enabling a competitive edge? Compass recently convened a panel of industry experts to share their perspectives on these and related issues.

Prior to renewing its IT outsourcing contract, a major global retail chain engaged Compass to analyze the quality and pricing of services provided, and to assess the service provider’s global capabilities. While satisfied with the vendor’s overall performance, the client sought to identify gaps and to more clearly articulate their objectives and expectations prior to negotiating a contract renewal.

A global manufacturer executed a contractual benchmark clause and engaged Compass to assess the market competitiveness and quality of IT services, and to define how both parties could act to improve the client/vendor relationship.A global manufacturer executed a contractual benchmark clause and engaged Compass to assess the market competitiveness and quality of IT services, and to define how both parties could act to improve the client/vendor relationship.