KPMG Consulting has launched a new service for companies negotiating outsourcing contracts - Fast Track Outsourcing - which aims to get a better deal for, and reduce the time taken to, finalise an outsourcing agreement. Fast Track Outsourcing represents a radical new approach to supplier selection and the negotiation of outsourcing agreements. It will enable clients to rapidly benefit from flexible contracts and realise the full commercial value of their agreements.
Explaining how Fast Track Outsourcing differs from other approaches, Bob Aylott, Practice Leader in KPMG Consulting's Outsourcing Advisory Practice, said: "Traditional outsourcing processes are fundamentally flawed; KPMG Consulting, in designing Fast Track Outsourcing, has rewritten the rules to address the problems inherent in these processes. For example, when negotiating an outsourcing contract using traditional methods companies fail to leverage the full capabilities of the supplier, resulting in a poorer deal. When using Fast Track Outsourcing, potential partners who are seriously determined to win the deal are qualified at the outset. The intensity and commitment demanded by the Fast Track process requires that they work competitively to deliver the best deal, and Fast Track Outsourcing assists them in doing so."
The approach is unique in the benefits it brings to both suppliers and clients. The advantages for suppliers include saving time, reducing the risk of expensive abortive bid costs, and an opportunity to fully demonstrate their expertise. Clients' managers, on the other hand, find the Fast Track methodology flexible and transparent as they are involved in the management process at all times, ensuring they are aware of the likely end result as they work with the supplier in its creation. They will also encourage and help suppliers to understand what they would really value from the outsourcing partnership and what it would take to win the deal.
KPMG Consulting has identified the factors that lead to the best outsourcing contracts and brought all of these together in a framework that is then applied through Fast Track Outsourcing's three phases. These factors include:
- intensive board involvement throughout the process;
- continuous contract development and negotiation that squeezes the maximum value from the deal;
- potential partners who are determined to win the business;
- a tight, well-defined and managed process that ensures timetables are met without surprises and all issues are addressed as early as possible;
- rapid access to specialists in, for example, tax, property and IT;
- rapid mobilisation of a knowledgeable team.
The process ensures that all parties know what Fast Track Outsourcing entails. This involves the parties signing up to the 'Fast Track Outsourcing Rules of the Game', which define the timetable, roles and responsibilities, confidentiality and enforcement procedures for the negotiation period. KPMG Consulting then helps to drive the process forward. Fast Track Outsourcing, therefore, marks a fundamental departure from the mechanistic procurement processes of the past and should bring significant benefits to clients and suppliers alike.
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This Briefing is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining the liability to tax or determining investment strategy in specific circumstances. In such instances separate advice should be taken.