| +1 (214) 696-6410 | Request a Free Quote > |
-
ProBenchmark was instr- umental in helping us to optimize our infrastructure and improve integration to better support the NASA mission.
Jeff Seaton, Deputy CIO
NASA -
We did an accelerated multi- dimensional benchmark with ProBenchmark. It was a fast and very productive exercise to help me drive results.
Andrew Peel, CIO
ACE Group -
We started with an idea and hired ProBenchmark to help assess the opportunity.
Using their consulting skills and market understanding, ProBenchmark identified a significantly greater opportunity - then helped us exceed the savings in half the time. How could we not be pleased?
Linda Kinder, CIO
Kellwood Company -
Our company used the benchmarking data to set the bar for what we wanted to achieve. It gave clarity on targets, tightened negotiations and was fundamental to the overall speed and results.
With ProBenchmark's help, we achieved over 20% cost improvement.
CIO
Midwest Manufacturer
ProBenchmark In the News
IT re-tendering benefits 'are likely to be lost'
(Publicfinance.co.uk - October 08, 2010)
By Vivienne Russell
Any savings generated from re-letting Whitehall IT contracts are likely to be negated by the costs of the re-tendering process, according to industry experts.
Pressure is on the outsourcing industry after Cabinet Office minister Francis Maude has repeatedly said he expects them to reduce their prices. Around 90 deals, valued at £5m or more a year, are due to be negotiated over the next two years.
But ProBenchmark, which provides market data to organisations looking to outsource, says renegotiating each deal could cost an average of £250,000. It adds that any desired commercial benefits from re-tendering are rarely made, even when contracts are re-let for a lower figure.
'We are seeing re-bid processes take 18 months or more to complete and costs to both parties of up to £8m – even before transition and redundancy costs are accounted for,' said Pro-Benchmark's Simon Scarrott.
'That is too big a burden on buyers and sellers of outsourcing services and is not economic. The tendering process in its current form costs more than the savings it delivers – and that is not sustainable.'
Scarrott added that a better approach for government would be to start contract renegotiations armed with information on current market rates.
'The government is the UK's biggest single buyer or outsourced services and should be paying the market rate – or at least understanding why not in the cases where it is overpaying,' he said.
Maude this week told the Conservative Party conference in Birmingham the government had been renegotiating contracts with its largest suppliers. 'We're entitled to get handsome discounts,' he said.
'Negotiating this wasn't the most glamorous way to spend the first part of August. And we're not there yet. This is a work in progress. But so far we've saved several hundred million pounds just in this financial year alone.'
