RvaluE Consulting Pvt Ltd

Sourcing Advisory

  • Overview

  • Service
    Functions Review

  • Sourcing Strategy &
    Structuring Models

  • SSC/ BPO

  • RFP

  • M&A

Shaping the Business Services model, in directional alignment with strategic objectives and goals, is the first major step for successful redesigning of service functions.

The sourcing strategy for each organization depends upon the strategic direction of the organization, its growth plans, the current business priorities and how the various staff/support functions enable the business units and the organization to achieve their key goals. Quite often, the staff functions act as a department, without being able to measure their output and their benefit/ impact on the organization.

Given the expertise, exposure and experience of RvaluE in off shoring, on shoring and India to India strategies and operations, the team is well equipped to provide sourcing advisory services in a comprehensive manner. The services include:

Service Functions Review

Sourcing Strategy & Structuring Models

SSC/ BPO Expansion

RFP Management

M&A Opportunities

Service functions integrate the business processes for every business! Hence, the strategy starts with an interaction with the Top Management to plan review of the various staff/service functions like Finance & Accounting, Human Resources, Procurement, IT and Customer Support Operations etc. The idea is to review and assess how to redesign the ‘staff’ functions into a ‘line’ functions i.e. with metrics to determine its performance and contribution, and convert the ‘support’ function into a ‘service’ function, in a way that it does not merely become a cost but adds value to the business unit and the customer

The sourcing strategy has two broad options – Shared Service Centers (SSC) i.e. processes are consolidated and retained within the company as a ‘self governing business unit’ to provide services to customers, or Outsourcing i.e. processes are transitioned outside the company to a Third Party BPO to provide services to the Company. Within these two options, there are multiple structuring models like BOT, BOM, Managed Services, etc, and these will need to be evaluated for the senior leadership to make the right decision.

We have our proprietary techniques and models to ‘shape the strategy’ on the key strategic drivers - Core/Non Core, In-house vs Outsource, Process Assessment Model, Process Consolidation Plan, Work Distribution assessment, Opportunity Identification, High Level Business Case, Phasing of Implementation including functions/ processes. The business case varies from 20% to 40% of the current cost, based on the function, processes, mix of off shoring and domestic headcounts, technology enablement etc.,

From an India to India point of view, it is essential or recommended to create the strategy for more than one staff/ service function to create the critical mass to adopt the right business process management strategy.

The Advisory services include shaping the strategy, not only for a first time effort to evolve the business services strategy but also to enable expansion of more processes /more services when the company has already adopted one of the two options - the shared services or the outsourcing model. This strategic approach will require re-assessing the business criticality of the function and its capability/maturity to decide on what to consolidate and what to outsource!

This can well include strategy to move up the value chain and/or Off shore/ Spin off/ Outsource.

Typically, the cost benchmarking and metrics base-lining initiative for the staff/service functions or the shared service center triggers the option to determine whether outsourcing all or some of the processes to a Third Party service provider. However, this is easily said than done, since it means to select the appropriate and right ‘service partner’ for the Company!

The RFP Management process is quite intense and exhaustive, involving preparing the Request for Proposal, applying a structured, parameterized approach to identify and short list the potential service providers, BPO responses for Client presentation, Solutioning workshops, and eventually leading to MSA draft review, final negotiations and LOI signing.

RvaluE has successfully completed an assignment very recently in May 2012 to spin off the F&A Shared Services centre of a Pharma major (with India to India business as well as US/ UK) to one of the global BPO Majors!

RvaluE team has exposure to the various aspects of M&A opportunities in terms of acquisition, spin off, restructuring and divestments. The Advisory services now include advising an existing SSC to move beyond from being a captive to gain readiness to tap the business opportunities to service external clients, and expand the business to Third Party BPO Operations as well.

The M&A services are customized to meet the specific needs and requirements of our Clients.