Sourcing & Selection
Outsourcing research from any number of sources over the years reveals that the outsourcing drivers cited by organisations do not vary greatly, irrespective of the industry, client, service or year. The qualifier being that whilst they may not vary in context, they do vary in priority or relevance according to the specifics of the organisation’s business environment at the time.
Cherub uses proven Sourcing and Selection approaches, methodologies and tools to source vendors and ERP solutions.
Outsourcing, therefore, is not a declining phenomena and more organisations use outsourcing as a management tool to deliver services to their internal and extended user base. Despite this consistency of purpose and the appreciable increase in understanding, experience and maturity in the implementation of sourcing solutions, many organisations are still not fully satisfied with the outcomes of their outsourced arrangements ... sometimes, with dramatic results.
Over 13% of outsourcing contracts are brought in-house within the first 2 years
Companies turn over 40% of their contracts each year, on average
Nearly 70% of outsourcing organisations feel their service provider does not adequately understand what they are supposed to do
Buyers replace 80% of their service contractors in the first three year
In order to reverse these results, it is essential that those considering outsourcing as a management tool should understand sourcing trends during the last two decades and leverage the sourcing lessons learnt to date.
Cherub has used this experience and knowledge to design, build and use its robust and proven Sourcing and Selection approaches, methodologies and tools to assist our clients to source vendors, technologies and IT services to augment their internal capability to deliver bottom-line improvements.
Sourcing and Selection comprises four primary stages, the culmination of which leads to Transition and Vendor Management.
The four stages are: