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Outsourcing

 
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The IACCM Outsourcing Network

The purpose of the Outsourcing Network is to provide its members with insights to new trends and emerging practices in the fields of outsourcing as they relate to contracting, commercial and relationship management.  While these will be in the context of the outsourcing  domain, they will draw from knowledge and ideas that are current and relevant in other domains and across all IACCM membership sectors. A key goal is to improve the performance of contracts and relationships in the outsourcing sector.

The objectives will be met by sharing ideas, discussing challenges, exploring new directions and, where appropriate, initiating research or inviting experts to present on key topics related to contracting, commercial and relationship management in the outsourcing domain.

Meetings will be virtual (by phone or webinar) unless in specific cases there is an agreed wish to have physical meetings or workshops to develop specific initiatives.

Group Mission/Vision:

Provide its members with insights to new trends and emerging practices in the fields of contracting, commercial and relationship management related to outsourcing.

 
 
Network Updates

Webinar: As a service contracting: challenges and negotiation points

More and more products - including software - are today offered 'as a service'. In theory, this offers buyers far greater flexibility and much lower investment costs. But this form of contracting introduces an array of new challenges and issues, ranging from protection of data, to security of supply, to uncertainty over future charge levels. For suppliers too, 'as a service' creates a range of complex issues - managing performance, monitoring usage, remaining competitive in a fast-moving market.

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AbbVie-SirionLabs case study: getting contract management right in a services-centric supply chain - IACCM Americas Conference 2018

Enterprises today face multiple headwinds from increasing costs, shrinking margins, growing competition, and stringent regulations. To overcome these challenges, businesses are exploring ways to drive operational efficiency by strengthening technology infrastructure, analytics capabilities and nurturing an eco-system of strategic supplier partnerships. As the supply chain becomes more services-centric to support this transformation, the traditional approach and technology for procurement, contract and supplier management are proving to be inadequate in handling the dynamic nature of these engagements.

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Do unreasonable terms drive innovation?

Suppliers understandably complain about the unreasonable terms and narrow evaluation methods used by some of their customers. They are often right to point at the failures that result from such behavior, when it results in incompetent and sometimes dishonest suppliers winning business that they have no chance of performing, or the burden of risk promotes an adversarial relationship.

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How to construct a SLA and price methodology for a contract covering outsourcing of SW purchases.

I am looking for some input in how to construct SLAs and pricing for a contract with a re-seller of software. The intention is that the supplier/re-seller will purchase all software with a value less than DKK 0,5 million (TCO) on our behalf and we are not sure how to make a payment scheme which is both fair and provides an incentive to the supplier to achieve the lowest price possible. Good ideas will be highly appriciated.

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Contract Pricing Consulting Services

Hi All! I was hoping that someone may have some information on consulting firms out there that provide services to assist organizations with understanding what the best pricing strategy may be for particular categories of contracts or industries. Does anyone have a list of top consulting firms that may do this type of work? Thank you for any information you can share.

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Asset ownership - Contract advance - help please!

Hi. I am located in the UK. We have recently won a contract to supply outsourced services. As part of the agreement we agreed to providing capital investment which will be depreciated on a straight line basis over the life of the contract. Under this arrangement purchase the assets and pay for any associated works and we also retain title ownership. However, the client needs to demonstrate an increased turnover for central funding reasons and has asked us to provide the sum of the capital investment as a contract advance which our sales team have already agreed to. The ownership of the assets will therefore sit with the client, but they want us to physically place the orders and make the purchases for them on their behalf and pass the costs through directly by invoicing them. My senior legal counsel is not comfortable with this arrangement as we will become liable for the assets and associated works. I'd like to present a solution as we seem to be at an impasse with the client and our operational colleagues. I'd be really grateful of any ideas or examples based on experience of similar situations.

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