Transfer of industrial operation or maintenance responsibility, or both, to an external partner requires good preparation. Over the years Maintpartner has carried out this process for about a hundred times and has expertise on how to manage the change. This information package guides you through the process successfully.

1. How to make
industrial service
outsourcing a
success?
Tips for sound process management

2. Maintpartner helps you to succeed
Transfer of operation or maintenance responsibility, or
both, to an external partner requires good
preparation. Over the years we have carried out this
process for about a hundred times and have certainly
learned how to manage the change.
This information package guides you through matters that
need to be considered – from preparation through tender
process to finish.
Maintpartner is a leading industrial operation and maintenance company in Northern Europe,
and the leading actor in the Nordic energy sector.
We help improve productivity and minimize process disruptions. In addition to long-term
operation and maintenance contracts we offer project, engineering and installation services to
industry. Our digital solutions represent the best-in-class development in the field.
Maintpartner Group employs some 1900 persons. Our net sales in 2016 was some 160 million
euros. The Group has offices also in Sweden, Estonia and Poland.
Further information at www.maintpartner.com
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3. Outsourcing
steps
1
GET
STARTED
EARLY
A well managed
outsourcing process
takes 1 – 1,5 years
2
SET A
GOAL
Clarify your
strategic
intent and
goal
3
SELECT THE
PARTIES
4
DRAW UP A
GOOD
INVITATION
TO TENDER
Select
tenderers
and
consultants Select a smart
commercial
model. Describe
the scope,
current situation
and types of
measurement.
5
EVALUATE
TENDERS
Is the tenderer
offering a credible
and applicable
model?
6
NEGOTIATE
Specifying the
tenders
7
SIGN THE
CONTRACT
Have all
necessary items
been agreed on?
8
COMMUNICATE
Open
communication
to internal and
external
interest groups
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4. Make time for the process
A major, well managed outsourcing or competitive tendering procedure
takes 1–1,5 years.
Reserve time also for meetings during the tender rounds:
• Briefing of the invitation to tender to the suppliers
• Review of clarifying questions and presentation of the suppliers preliminary service
solution (2–3 weeks after the invitation to tender has been received)
• Presentation of the tender
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5. Define strategy and goals
The starting point for the process and the future partnership
is the company’s or production plant’s target stage which has
been derived from the maintenance strategy. Further, the
target stage shall be split up in concrete goals and actions.
Clarify, why are you planning to outsource:
- To focus on your own core operations
- To get value added that at present is not possible for you, for
example, improved
reliability ● cost efficiency ● occupational safety ● predictive and
systematic operations ● maintenance management ●
management of HR risks ● etc.
Keep these goals clear in your mind throughout the process and
communicate them clearly also to the partner candidates.
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6. Define the parties of the tendering process
Consider using consultants, if your own resources are not adequate, for
• Data collection,
• Determining your present cost structure(*,
• Comparing suppliers or
• Creating reference models.
Maintain close contact with the suppliers and share information openly. This
helps to base the offered solutions on genuine needs.
*) incl. all own costs: personnel, non-wage labor costs, tools, vehicles, occupational health services, share of
administrative costs etc.
Select only credible
suppliers, who can
provide you with high
quality tenders.
Reduce the work load
of the tender rounds by
narrowing down the list
based on the
preliminary meetings.
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7. 7
Invitation to tender
What should be considered when
drawing up an invitation to tender?
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8. Describe the target stage in the invitation to
tender
• Tell what you are looking for with competitive tendering and
outsourcing.
• Describe the main points how to measure the success.
• What are your criteria when selecting a service provider: short and
long-term targets.
• Decide in good time, for what entity you need a supplier, and
whether partial tenders are acceptable.
We want to have
a partner who
takes care of our
facility in a
professional
manner.
We want to have a
partner who
undertakes to develop
the activities at our
facility.
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9. Choose an optimal commercial model
The most common models for service contracts are
Fixed-price contracts:
The most demanding to define, joint risk
and benefit
Contracts with target
price:
Average, parties share risk and benefit
Contract on hourly or
accrual basis:
The easiest to define, monthly
compensation varies
If necessary data is not available, the contract can be started with a model
requiring less information and move towards a fixed-price contract after one
year, for example.
Amount of
required
back-
ground
data
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10. Describe the scope clearly
Make a synergy analysis and decide on the scope of the
services that you will order: what is an economically
attractive service entity that can be managed effectively.
Pay attention to e.g. your internal costs for supplier
management and what kind of flexible resourcing the suppliers
can offer.
Describe the services in detail, for example with help of
responsibility matrices, so that the tenders will be
commensurable.
You can also ask the suppliers to make a proposal of their
standardized services and operational model which bring cost
benefits (requires extra work when comparing the tenders).
Describe also needs and expectations related to maintenance
management systems and system integrations in your invitation
to tender.
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11. Describe the present state in detail
In order for the supplier to understand the development needs, workloads
and scope of the transition project, an accurate description of the present
situation of e.g. the following items is needed:
The present
state can be
identified also
through
interviews, but
that is often
challenging
due to the
scope of the
project.
Workload, number
of staff, shift work
arrangements etc.
Suppliers (roles,
responsibilities,
contracts,
volumes, etc.)
Resourcing
Required special
competencies
Information about
scheduled
maintenance
Information about
corrective
maintenance work
Problems
Ongoing and
known projects
Development
plans
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12. Prepare the indicators for success
Define preliminary indicators for monitoring the service
already in the invitation to tender.
The indicators can be specified as the negotiations go on.
Choose indicators that support the progress towards achieving
the objectives that are set in the contract and are critical to
your production.
Good, widely used indicators are e.g.
- OEE (availability, performance and quality)
- Availability
- Occupational safety
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13. Clarifications on selecting the commercial
model
In order for the supplier to be able to prepare a reasonable fixed-
price offer without disproportionate risks, the invitation to tender
should include comprehensive HR data and data from the
maintenance management system, like the outcome of scheduled
maintenance and fault history.
If you wish to include procurement of spare parts and materials in
the fixed prices, there must be data available of them as well as
reasonable limits in the terms of the agreement.
Regarding subcontracting, one good model is to apply
management fee to cover the procurement costs.
1
2
3
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14. 14
Tender evaluation
Items needing attention when
evaluating the tenders
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15. Is the proposed resourcing model feasible?
The resourcing model proposed by the supplier must
correspond to your own objectives.
For a comprehensive service scope it is worth to consider a model
where the supplier complements the resources through
subcontracting and also leads the subcontractors, if needed.
If some of your own staff will remain at the site, make sure that
both parties are clear about their roles.
Ensure that the supplier pays special attention to subcontractors’
safety processes.
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16. Will the services be developed as needed?
Ensure that the supplier delivers services that meet
your needs all through the contract period – also, if the
business needs change during the contract period.
Ask the supplier for a model and resource plan according to which
the maintenance activities will be developed all through the
contract period.
Ensure continuity of operations also in a situation where you want
to switch to a new supplier.
Take the possibility to switch to a new supplier into account already
when defining the service model, responsibilities and terms of
contract.
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17. Find out about the supplier’s processes and
tools
Pay attention to the supplier’s ability to report the
realization of the services and their objectives -
Ask the supplier for a description of tools, standard reports and
their customization as well as management methods to be able to
assess their suitability.
Define the roles and interfaces for your cooperation, including
the workload that remains with your own organization.
Ensure the integration of the supplier’s systems in yours and
reserve enough time and resources to implement the
integrations.
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18. Ensure that your EHSQ practices are
compatible
The supplier’s EHSQ practices are vital in order to
achieve your objectives relating to environmental,
safety, quality and personnel matters, and to minimize
your EHSQ-related risks.
Ensure that the supplier’s procedures relating to wellbeing at work
and competence management are admissible.
If responsibilities towards authorities are transferred to the
supplier, these must be brought up as early as possible. Such are,
for example, supervision of electrical equipment and responsibility
for pressure equipment or chemicals.
Engage the supplier in safety work and continuous improvement
through KPIs.
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19. 19
Concluding the
contract
Payment terms, financing,
procurement
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20. Contract and its terms and conditions
Include the most important contractual terms already in the
invitation to tender, at the latest during the specifying tender
rounds. Bear in mind that also the contractual terms shall be
appropriate.
The terms and conditions must be based on business needs;
modifying standard terms to correspond to the service in question
speeds up the negotiations considerably.
Some of the terms and conditions impact on prices, which
professional actors take into account.
When drawing up terms and conditions, the position of the
supplier companies in relation to the ordering company must
be considered. For example:
Suppliers are smaller companies with a light balance sheet.
The insurance coverage must be on an adequate level and
insurances issued by high-class companies.
The financing costs of a supplier may be remarkably high,
therefore a long payment term gives the customer only expensive
financing.
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21. Agreeing on procurement principles
Make a clear agreement on the roles and responsibilities
relating to the procurement of materials and spare parts.
The most important aspects are that the work flows smoothly and
you avoid a double organization, i.e. the same work is not done
by two organizations.
There is no advantage in putting the risk of large purchases to
the supplier. That way you avoid unnecessary risks and enable cost
efficient operations.
Remember that in some purchases the supplier may have cost
advantage. Utilize the supplier’s contacts and the possible price
benefit resulting from scale and scope.
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22. 22
Personnel and
communication
From personnel strategy to change
management and communication
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23. Ensure good change management
To succeed, the change in operational model requires a well-
planned personnel strategy. Start to shape it simultaneously
with the planning of the outsourcing project. Remember to
include both the remaining and transferring employees.
Personnel strategy is part of change management, and will help to
steer it. Ensure that the chosen partner has adequate knowledge of
change and personnel management.
When the personnel strategy is well-thought-out and well
implemented, the change process can be carried out in the
organization and company culture so that the financial objectives
are met – at least more easily.
It is clear that persons are replaced over time. Regarding flexible
resources, the labor turnover may sometimes be frequent.
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24. Coordinated communication to personnel
Prepare a communications plan (responsibilities, timetable,
channels, materials) and main messages: What is happening,
why, when and how? Who are concerned?
Inform the personnel about the matter as soon as you can,
preferably in an internal information meeting. Be prepared to
answer questions. Let the new employer’s representatives
accompany you.
Plan ahead the content for the staff information package
- What will change?
- What remains unchanged?
- How does this impact them?
- What kind of development plans does the new employer have?
- How is communication handled from now on, who will answer the
questions?
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25. Tell your message also to external audiences
Open external communication increases the trust towards the
company and offers a possibility to give your view of the
matter, in your own words. Therefore the matter should not be
hidden. Outsourcing is also a way for the personnel to
develop their work.
Agree with your partner on communication:
- Press release or other type of release (Internet page, etc.)
- Share information in social media
- In case of major outsourcing contracts, also a press conference is
possible
Who gives further information?
- Spokesperson should reserve time for answering possible
questions from the media
- Agree jointly on the key messages
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26. 26
Contact us, we are happy
to tell you more!
Hannu Leskelä
President, Service Agreements, phone +358 (0)40 546 8580
Mika Riekkola
Sales Director, phone +358 (0)40 739 6607
E-mail format firstname.lastname@maintpartner.com
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27. We keep the production facilities of our
customers in operation and in good
condition.