Of course, this blog is not addressing home purchasing; it’s focused upon sourcing your IT functions or business processes–one of the single most important and largest financial transactions a company makes and experiences.  A complex decision, filled with risks and obligations... you see where I’m going.

An outsourcing advisory (OA) firm specializes not only in the process (methodology) for strategic sourcing, but also across the full spectrum of data, information, templates and tools, best practices, leading trends, and support services within the outsourcing industry.  An OA firm combines 20, 25, even 30 or more years of experience per senior consultant to managing director in your advocacy.  These firms deal with the intricacies of sourcing transactions daily, and have the latest market-based scope, service levels, and pricing information gathered from primary evidence, established via their own accumulated and most recent transactions.  They know the providers, their strengths and the areas where they need improvement; many advisory firms keep an updated database on each provider.  And in fact, the providers dedicate resources to build and enhance their relationship with OA firms.  The providers acknowledge they stand to benefit via a shorter sales cycle, a more consistent request for proposal (RFP) format, steady feedback, and professional management of the overall process.  The providers understand these benefits, much like home sellers understand their benefits for hiring a realtor.  So whether you’re a home buyer, or seller, you hire a realty specialist because you understand the benefits.  Similarly, whether you’re a client or a provider of outsourcing services, once you understand the role the advisory services firm plays and the benefits you each realize, you’re much more inclined to hire and work with an OA firm.

It’s a win-win-win outcome for the client, the provider, and the advisory firm.  The advisory firm changes the overall dynamics of the sourcing game.  Rather than a one-on-one adversarial relationship where the client squeezes the most out of a vendor, or the provider takes advantage of an unsuspecting customer, the advisory firm helps both reach the appropriate market-based terms and conditions.  The future outcome is rarely successful when a provider is beaten down, or when the client is paying too much for services. However, with a third party (although hired by the client) charged with the responsibility of advocating for a long-term sustainable partnership, the client gets the best price per service level and delivery function, the provider secures a long-term revenue and profit stream, and the advisory firm builds upon its reputation as a trusted advisor and list of “reference-able” clients, keys to being invited to help with the next client.