Sourcing

Finding the appropriate provider

One of the core issues regarding IT business management is sourcing. It involves the following five areas of responsibility: sourcing strategies, tendering, transition, provider management and contract termination. The skills required refer to technical expertise, economic understanding, legal experience and organisational qualities.

Here, the following three elementary questions are paramount:

  • Which level of intensity is ideal for IT production?
  • How can we achieve sourcing best performances at optimal business standards?
  • How can providers be managed in cooperative ways?

Besides the five sourcing areas, IndiTango offers consulting services that resolve the following concerns:

  1. Determining the sourcing strategy
  2. Tendering
  3. Transition support
  4. Definition and implementation of provider management
  5. Termination management methods

Verified templates, combined with our longstanding experience, guarantee optimal results.

Sourcing strategy

Make or buy? We’ll help you make the right decision

The sourcing strategy bases on two key questions: How intense should IT production be, regarding content and cost, and which tender standards should be used?

IndiTango services:

  1. Make or buy decision support:
    We develop standards in line with cost and content parameters, based on IT strategies.
  2. Creating a provider strategy:
    We support assessing strategies for the different areas of services (single/dual/multi-vendor).
  3. Developing business cases:
    We assist in introducing evaluation methods for potential cost reduction.
  4. Tenders:
    We support the implementation of guidelines and standards based on verified templates and methods (purchase conditions, frame contracts, standard requirements, basic benchmarks for evaluating providers, …)
Sourcing strategy
SOURCING STRATEGY

Tendering

Structure tenders and how to minimalize efforts

Besides technical expertise, economic understanding, legal experience and organisational qualities, tendering IT services with the suitable amount of effort also requires the appropriate methods and performance models.

IndiTango services:

  1. We support creating performance specifications and SLA definitions.
    Multiple existing and verified templates are used, bearing possible profiteers in mind.
  2. We develop business cases to assess projects and as a basis for benefit management.
  3. We help you identify and evaluate potential suppliers for the RFI stage.
  4. We prepare tender documents for the entire RFI und RFP, i.e. RFQ, based on the existing templates.
    They include frame contracts, service specifications with SLAs, pricing models including price lists, penalty clauses and guidelines for the tenderer.
  5. We develop an evaluation matrix using business and expert criteria and transfer the proposals into an evaluation report.
  6. We support negotiations up to contract termination or even take care of the entire negotiation process.
    Negotiations are based on the Scotwork method©.
  7. We offer project support throughout the entire tendering process, including realistic planning, assistance in all stages of the project and document management support (if required, IndiTango will also perform anonymised tender services).

IndiTango tender methods

The IndiTango tender method is based on a modular format that adapts to the established contract agreements and service specifications. This modular format already matches future contract framework and therefore considerably reduces the efforts for evaluation and proposal on both customer and bidder sides. By applying the modular format to demands, negotiations directly target the issues that need to be solved.

IndiTango experience

IndiTango has successfully applied established templates, including contract copies, service specifications, SLAs and pricing structures, in various tender projects:

  • IT outsourcing and IT out-tasking contracts
  • Contracts for developing and operating individual applications
  • Contracts for launching new platforms (e.g. SharePoint, SAP Hana, Hybris, …)
  • IT service contracts (e.g. security managers, project managers, …)
  • Hard and software supplies

On Boarding / Transition

Smoothly moving things to the provider

Creating an organisational agenda is paramount during the on-boarding stage of projects and transition to a provider. In this stage, the major challenge is how to operationalise the performance models previously established.

IndiTango services:

  1. We support developing the agreed reports for SLAs and quality standards. These include SLAs for measuring technical service quality, quality surveys for statistical evaluation of subjective qualities and determining acceptance procedures.
  2. We support developing business procedures in the areas of invoicing processes, tracking penalties, cost control and processing non-standard requests/project changes.
  3. We support developing contract governance. This includes establishing committees and boards, escalation matrixes and change processes.
  4. We support knowledge transfers.
  5. We support staff transfers according to §613a BGB.
  6. We offer project support throughout the entire transition period, including realistic planning, project management and documenting the results.

Definition and implementation of provider management

Successfully managing providers

The quality of provider management co-determines the rate of sourcing success. Provider management should always be in line with the entire IT governance and, at the same, it should consider the unique features of a provider and the contractual agreements made.

IndiTango services:

  1. Definition of core processes and activities
  2. Definition of roles and responsibilities of both customers and bidders
  3. Definition of management boards to support mutual control
  4. Preparation of KPIs for provider management
  5. Definition of organisational structures for outsourcing contracts (retained organisation)
  6. Connecting provider management with service and integration management, project and portfolio management and demand management

Concept and performance of provider management are based on the IndiTango provider management framework.

Provider Mangement
PROVIDER MANAGEMENT

Managing termination procedures

A systematic look at future options

At the end of a contract term, further options should be organised and assessed. This mainly applies to operating services provided for outsourcing and out-tasking.

IndiTango services:

  1. We support evaluating the quality of the past cooperation
  2. We offer a benchmark of the current costs
  3. We help to evaluate various options (contract renewal, insourcing, tenders)
  4. We suggest modifications for contract renewals