It is often a key issue to revise the company business operational model from a “buy or build” point of view. You can find quite some examples for extreme operations: airlines where everything except customer relationship is outsourced to strategic partners or insurance firms where only tiny little activities are provided by third party suppliers. Both could be successful as these decisions are highly dependent on strategic focus, investment policies and the economic environment.

In order to make a wise decision the management expects to get a deep understanding of all business implications on profitability, organisation and operational risks. Successful in-sourced or out-sourced decisions also required the proper contexts in terms of legal relationship, performance measurements, incentive systems and organisational fit.

We have significant experience in establishing outsourcing relationships, benchmarking and contract management. It could cover business operations (BPO – Business Process Outsourcing), Information Technology management (ITO – Information Technology Outsourcing) within infrastructure, application operations and application development.

Our services can support the entire procurement and operational processes:

• Total Cost of Ownership analysis of an operational area or a proposed new area build and operations; Due Diligence
• Decision making support of the “Buy or Build” decision
• Preparation of a procurement documentation – including services specification with Key Performance Indicators (i.e. Service Level Agreements), transformation approach, operation and services management processes and proposed contractual structure
• Contractual negotiation support
• Services Transition setup support
• Contract management support
• In-sourcing management

The business transaction is very similar to an M&A process where assets, human resources and supplier contracts are acquired by an external partner who would change (improve) the performance and share the financial results with the client.