Compass Management Consulting South Africa has announced its Proxy Bid service as an extension to the Outsourcing Value Analysis (OVA) offering offered by the consulting firm.
OVA is a specialised service that is designed to help organisations determine whether or not they are still getting value for money from their outsourced services. It delivers an objective and contextual understanding of both the cost and quality of an outsourcing contract to give an organisation a comprehensive view of both current and future sourcing options.
"When it comes to outsourcing contracts, often a few years in or towards the end of the contract, organisations become unsure as to whether or not they are getting the best pricing and value out of the deal," explains Stephen Woods, South African country president at Compass Management Consulting. "OVA is an independent analysis of the contract and services, which benchmarks these against market standards to get an objective view of how the contract is delivering."
The Proxy Bid service is an additional service offered under the OVA umbrella, which uses the vast amounts of data gathered by Compass, particularly regarding market prices and service levels, to create a report of various providers with their pricing and services, a benchmark against industry standards and a detailed scope of work.
Says Woods: "This service is designed to save organisations time when it comes to renewing an outsource contract or when they are looking to outsource a new service. Going to market to get quotes from various vendors is a costly and time consuming process for both parties, and is an imperfect method as it may not consider all possible providers or give results compared to market and industry standards."
To conduct a Proxy Bid, Compass first gathers an understanding of the client's business objectives and needs and how their IT department relates to this. The team will then examine the existing contract if one is in place, evaluate it to see if it is meeting the needs of the organisation in terms of both service levels and price. Recommendations can then be made based on this in relation to the market.
"Using our Proxy Bid service has a number of advantages. Firstly, organisations do not expose themselves to the market using this service, and it is also an independent way of getting information on current market prices without wasting vendors' time," says Woods. "This is especially important if an organisation is happy with the current provider and wants to continue using their services, but for governance reasons is required to prove that they have conducted an assessment."