Strategic sourcing is the process by which organizations determine how to access the right IT and business capability at the right cost. Sourcing must be managed effectively across the key dimensions of management, resources, services and business processes to be successful long term.
As companies redefine their operating models and strengthen core capabilities, they depend on a wide range of sourcing solutions to give them access to global talent, scale, and capabilities. Outsourcing of IT or business processes is just one option of sourcing strategies. Sourcing initiatives are large investments, with huge potential for value creation as well as significant potential risks, so it is important to get independent advice on the most appropriate strategy and implementation. As deals move from transactional to transformational, the trend is to move from supplier relationships to partnerships with vendors whose pricing mechanisms are more innovative.
With strategic sourcing, Fulcrum can help clients to deliver their services and operations in a scalable and cost-effective manner that fully captures the potential of strategic sourcing. We provide support at every stage, from strategy design to successful implementation and benefits realization. Our expertise includes:
- Strategic Sourcing Strategy – We help customers to realize the full value of sourcing by defining the appropriate operating model for business support services as well as for business processes and IT. We work with the customer to decide whether capabilities should be kept in-house or outsourced, and onshore or near-/offshore. Our capabilities also help design the appropriate governance structures and processes which are critical for success. Since Fulcrum does not offer outsourcing services directly, we are in a position to be a truly independent, objective advisor, providing a rigorous analytical approach to outsourcing decisions.
- Sourcing Design and Implementation – Fulcrum consultant’s approach outsourcing as a large transformation project, focusing on strong change management actions and rigorous program management. Similarly, we validate the understanding of deal economics of all parties to optimize the value created.
- Outsourcing Management - Managing large outsourcing arrangements is typically not a core competency of client organizations. Fulcrum brings expertise to help organizations adopt sophisticated practices in contract management, vendor performance management, and overall vendor-relationship management.