There is a large national law firm outsourcing RFP project that is in progress now where the RFP project management vendor is prescribing a Cost Plus Model for the contracted services. Generally, labor costs make up 75-80% of an outsourcing services contract, so this is primarily in an attempt to “reign in” labor costs. The theory behind a cost-plus...
The office Support Services outsourcing industry has seen some consolidation in recent years with Ricoh acquiring IKON (which no longer exists as of Jan 2013) as well as Canon’s acquisition of Oce Business Solutions (also, no longer, as of January 2013).
If you’re engaging in a closed bid renewal process for your outsourcing services there are a number of keys to remember and to operate by: In any renewal process, in the current economic environment where all business are trying to cut costs and increase their revenue opportunities, nothing should be off the table.
There’s been a recent trend in the procurement of Business Process/Office Support Outsourcing Services where to compensate for stagnant growth, Outsourcing vendors are “buying” a client’s business, typically in a competitive displacement. This is achieved by paying a large up front “incentive” or cash disbursement to the client, for a three-four year services contract. This upfront fee, which is...
A recent trend over the past several years in legal has taken shape where in particular large national law firms have partnered with Procurement Consulting firms such as (Profit Recovery Partners (PRC) to take a hard line negotiating stance with their incumbent office support outsourcing provider. Often the “negotiations” in the renewal process, which are based entirely by the...