Renegotiating business process outsourcing (BPO) contracts
CCS is a not-for-profit, independent organisation founded to raise standards and the image of the construction industry. Construction sites, companies and suppliers voluntarily register with the CCS scheme and agree to abide by the Code of Considerate Practice, designed to encourage best practice beyond statutory requirements. CCS audits all registered sites, utilising its Monitors who are industry experts.
CCS engaged eXceeding to support the review of its BPO contract and the marketplace. The incumbent – who had been delivering the full BPO service for over 17 years – clearly knew the operation and deliverables in far more granular detail than CCS. eXceeding therefore worked collaboratively with the incumbent to extract the full-service deliverables and operational approach.
eXceeding took the detailed analysis and created a comprehensive specification of CCS’ BPO requirements. The specification was then taken to the market to explore potential comparable and alternative delivery models.
The market test results were discussed with the CCS board and the conclusion was to renegotiate the current agreement with the incumbent provider, whilst creating a far more detailed contract with SLAs, KPIs and service credits. Certain discreet services such as IT, HR, Marketing and Finance were removed from the BPO contract.
We identified 3 key challenges which needed to be addressed as part of the project:
Reduced service levels
There was a fear that the incumbent’s service would deteriorate during the procurement process.
Key stakeholders
The service provider’s CEO was also the Scheme’s CEO so the project had to be handled with extra care.
The incumbent service provider
Who refused to cooperate with the review process or to bid for services.
eXceeding acted as a central point of expertise and took ownership of all aspects of the project, providing CCS with a detailed understanding of the incumbent’s service delivery and operational model.
All stakeholders were engaged to embrace the potential new contract, as an advantageous step in securing the scheme’s future. eXceeding supported contract negotiations and addressed red tape scenarios.
eXceeding increased the scheme’s longevity with efficient Supplier Relationship Management and a contract which now details all aspects of delivery, with the agreed contract schedules. The flexibility to ensure mid-term service deliverables proved a lifeline to CCS. Contract benchmarking was implemented throughout the contract terms which allowed for transparency.
Working with the eXceeding team created a close and trusted partnership, with them regularly taking an active part in the CCS Board meetings throughout the contract review process. The consultants helped us understand and navigate the complex BPO contract that had evolved over many years. Once the specification was understood and documented eXceeding did a comprehensive market review and then presented the options and made recommendations. eXceeding then assisted to deliver and execute the agreed approach.
Capco asked eXceeding to fully assess their current IT service catalogue and recommend the right future solution for their outsourced IT managed service support.
eXceeding’s role was to define the procurement strategy and the process, whilst working with their IT and procurement teams to support their inhouse work streams.
With a large number of incumbent sub-contractors across the UK, all with differing contract terms and SLAs, Novati was looking to reduce the number of suppliers, optimise costs, whilst also improving its supplier relationship management approach.
