The Role Of Benchmarking In Today’s Outsourcing Environment |
(DALLAS, Texas) September 20, 2010 - What is the role of benchmarking in today's outsourcing environment?
According to Alsbridge CEO Ben Trowbridge benchmarking is becoming recognized as a management discipline for driving external cost-efficiency.
Historically, benchmarking has been a means to evaluate internal cost efficiency. However, as Trowbridge explains, "sourcing trends, economic uncertainty, financial pressures and technological advances are the reasons why benchmarking is taking on a larger role within the outsourcing process."
So how can benchmarking be used in an environment where requirements are constantly changing, returns are required sooner rather than later and there are ever more options for selective sourcing? The chart below details three main areas:
Each of the three types of benchmarking has a role at key points through the sourcing life cycle.
- Snapshots - rapid-delivery benchmarking exercises to collect and assess validated data as input to a business case for outsourcing or to gain an external view of price performance, based on invoice and service reports
- Monitoring - activities performed in real time to evaluate performance, investigate alternative scenarios, review bids and make minor service "tuning" decisions
- Contractual assessment - detailed assessment of contractual performance from multiple perspectives, including charging structure, operational effectiveness, cultural alignment and price performance
"By selecting the right form of benchmarking, companies can continue to drive expected gains from outsourcing both now and in the future," sums Ben Trowbridge.
More information on this topic can be found on Outsourcing Leadership under the title, The Role of Benchmarking in Outsourcing.
Visit http://www.outsourcingleadership.com/ for additional information on best practices in outsourcing, shared services, benchmarking, and assistance with your sourcing strategies.
About ProBenchmark
ProBenchmark provides unparalleled benchmarking and market price intelligence services for the outsourcing marketplace. Our patent-pending, parametric models provide accurate, reliable results, allowing clients to rapidly make fact-based decisions in support of business case development, contract negotiation and ongoing benchmarking and governance of outsourcing service agreements.
ProBenchmark's leadership team helped invent price benchmarking and developed a patent-pending approach for benchmarking that allows for faster, more robust and accurate market price comparisons. While market price competitiveness is key for successful outsourcing agreements, clients must find a balance between low cost and sustainable service delivery to ultimately create a lasting business relationship.
Our consultants have extensive experience in the outsourcing marketplace, including knowledge of market prices, service levels, delivery approaches and contract metrics. ProBenchmark combines a unique suite of tools, a strong methodology and the deep industry experience of its consultants to provide unparalleled benchmarking services that helps clients create and manage balanced, sustainable and market competitive outsourcing transactions.
About Alsbridge Inc.
Alsbridge, Inc. is an award-winning global advisory firm and a distinguished member of the 2010 Inc. 500 fastest growing privately held companies. Alsbridge redefines the way companies reduce costs and improve back office operations. Our proprietary benchmarking tools and data resources enable clients to utilize the most cost effective and value added sources globally for information technology, business processes and telecommunications networks. Through a combination of internal optimization and outsourcing, our clients achieve cost savings that support their strategic business objectives.
Founded in 2003, Alsbridge is the proven, effective difference. The company's web site is: www.alsbridge.com. |
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