Lee Ayling, EquaTerra Managing Director of Information Technology (IT) Advisory Services, UK

The first in a pair of blogs, I here begin a look at sole-sourcing, an increasingly popular method of services procurement, from the perspective of the service provider.

What?

Sole source is not, as it is easy to assume, a short cut to service provider selection – omitting the competitive process. The sole-source approach to the outsourcing of services is simply one where a client conducts a procurement process with just one supplier rather than multiple outsourcing organisations.

Sole source is a legitimate, and often smart, strategy – in fact, the first objective of all good competitive selection processes is to a identify a single preferred provider, only then is real value created.

When?

A client organisation may consider sole sourcing when they are initiating a new outsourcing project.  However, in EquaTerra’s experience, service providers are more likely to find themselves discussing sole sourcing with an existing client considering renewing a contract – and particularly when the client is interested in adding additional scope.

Why?

For the service provider, a sole source approach has the benefit of bid cost reduction, lower competition risk and having the full attention of the client organisation. Clients will be keen to realise the benefits of reaching a better solution sooner, through a collaborative negotiation process.

Service providers can be concerned about the role of an advisor in sole source negotiations, fearing that they will impose a standardised and cumbersome procurement process.  However, the role of an EquaTerra advisor when working with a service provider and client organisation is to optimise the value of the contract – our extensive experience in advising on sole source deals with the trust and respect of both parties, has enabled us to develop a uniquely adapted approach that combines speed with safety.

Further Insight

Read EquaTerra’s article Considerations for Adopting a Sole-Sourcing Approach to learn more about getting the best from the sole source approach.

If you would like to discuss how EquaTerra can help you deliver the maximum benefit and sustainability from sole sourcing please contact me at  lee.ayling@equaterra.com.

Coming soon

Sole Sourcing -  Traits of a Successful Sole Sourcing Deal

Filed under: Contract Review & Negotiation, Outsourcing by EquaTerra