Pre-benchmark before you sign your           contract or invoke your outsourcing           contract benchmarking clauseDia...
Current SituationBenchmarking your contract can be dangerous because:• You may not know the potential savings or ‘size of ...
Complication• Your service provider has probably got a team ready to  rebut undesirable benchmarking findings• Legal chall...
Pre-benchmarking• This is informal benchmarking of the outsourcing contract  with no input from the supplier• We use the K...
KPIs – Attention to the workload                    denominator in KPI equations                    is key to successFor e...
Benchmarking vendor              selection• Pre-benchmarking gets the collective contract team  thinking to a higher level...
Death by normalisation• Normalisation of differences between your topology,  SLA, contract duration etc vs reference group...
Check the contract wording• Most benchmarking clauses are written by professionals  with limited ‘real world’ benchmarking...
Benchmarking firms• The same two major benchmarking firms are generally  named in contracts• Other firms and benchmarking ...
Review the benchmarking             clause• The pre-benchmark will include a ‘real world’ review of  the benchmarking clau...
Pre-benchmarking in              practice• Our four stage process enables us to work off-line for  any English speaking co...
The Take AwayBenchmarking is totally different to comparisonsduring procurement, so get ahead of the game bypre-benchmarki...
I hope that this has been helpful ..           Please contact me or my team for a contract pre-           Benchmark or oth...
Pre benchmark before you invoke your benchmarking clause in your outsourcing contract 1
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Pre benchmark before you invoke your benchmarking clause in your outsourcing contract 1

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Pre-benchmarking is a very discrete service that helps to identify the 'size of the prize' of invoking the benchmarking clause in your IT contract

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Pre benchmark before you invoke your benchmarking clause in your outsourcing contract 1

  1. 1. Pre-benchmark before you sign your contract or invoke your outsourcing contract benchmarking clauseDiane WhiteIT Perceptionsdwhite@it-per.com 1
  2. 2. Current SituationBenchmarking your contract can be dangerous because:• You may not know the potential savings or ‘size of the prize’, if any• You may accidentally fall foul of the KPIs that are likely to be used in benchmarking• You may have excess volumetrics (eg unused email accounts) that you should fix first• You may not get another chance for a few years 2
  3. 3. Complication• Your service provider has probably got a team ready to rebut undesirable benchmarking findings• Legal challenge of benchmarking findings is on the increase by both clients and service providers• Over extensive normalisation reduces the gap and an ‘its OK’ result is increasingly the norm 3
  4. 4. Pre-benchmarking• This is informal benchmarking of the outsourcing contract with no input from the supplier• We use the KPIs that are likely to be used by major benchmarking firms enabling appropriate analysis, consideration and modelling of outcomes• It provides high level ‘size of the prize’ assessment to identify pain vs gain executive decisions 4
  5. 5. KPIs – Attention to the workload denominator in KPI equations is key to successFor example, the number of: • Locations• Email accounts • Network ports• Service Desk incidents • Databases• Service requests • Servers• IMACs • Data storage (Installs, moves, adds, chan • Computer rooms ges) • Service hours• Desktop / laptops• MIPS a subset of 45 workload types / KPI denominators 5
  6. 6. Benchmarking vendor selection• Pre-benchmarking gets the collective contract team thinking to a higher level prior to the selection of the benchmarking firm• The RFP will be more rigorous and challenging, enabling a higher quality and more robust benchmarking deliverable 6
  7. 7. Death by normalisation• Normalisation of differences between your topology, SLA, contract duration etc vs reference group peers can be the cause of extensive analysis and challenge by unhappy service providers• It is important to have benchmark peers that closely match your characteristics reducing the need for too much normalisation 7
  8. 8. Check the contract wording• Most benchmarking clauses are written by professionals with limited ‘real world’ benchmarking experience• Therefore these clauses make demands on benchmarking firms that are unrealistic, given their database• This means that these firms can be out of their comfort zone and are more likely to come in with a result that will not be challenged by the service provider 8
  9. 9. Benchmarking firms• The same two major benchmarking firms are generally named in contracts• Other firms and benchmarking products provide solutions that may provide a better fit to your contract• It is important to keep your options open within the benchmarking clause 9
  10. 10. Review the benchmarking clause• The pre-benchmark will include a ‘real world’ review of the benchmarking clause to understand the implications given the standard methods used by most benchmarking firms• It may be that a blend of several benchmarking firms is required to meet your requirement 10
  11. 11. Pre-benchmarking in practice• Our four stage process enables us to work off-line for any English speaking country & on-site in Europe• Our consultants are ex-Compass or Gartner with over 15 years field experience• We provide a totally discrete and confidential service• Our charges are a fraction of the Tier 1 providers 11
  12. 12. The Take AwayBenchmarking is totally different to comparisonsduring procurement, so get ahead of the game bypre-benchmarking your contract in order to avoidnasty surprises 13
  13. 13. I hope that this has been helpful .. Please contact me or my team for a contract pre- Benchmark or other benchmarking mattersDiane WhiteIT Perceptionsdwhite@it-per.com 14

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