In the evolving technology landscape, sourcing is crucial for global IT service delivery, prompting many executives to hire specialized sourcing advisors for strategy development and execution. A thorough analysis and targeted RFP process are essential for selecting the appropriate advisory firm, focusing on specific company needs and potential outcomes. The RFP should include detailed information on the company's operations and scope, while bidders should provide methodology, staffing, experience, and cost structures.

1. In today’s dynamic technology
environment, sourcing is increasingly
utilized as a key component of global
IT service delivery. As sourcing is
a highly specialized and complex
process, many IT and business
executives consider hiring a specialized
sourcing advisory to support the
development of a sourcing strategy,
the execution of an insourcing
initiative, or the management of
an outsourcing transaction.
The role that a sourcing advisor
plays in the strategy development
and orchestration over the sourcing
process is vital to achieving the desired
business outcomes. Conducting
a thorough analysis of sourcing
advisory firms is key to finding
the best fit firm for your project
Developing an RFP is one way to
evaluate capabilities of sourcing
advisory firms to support your project.
There are two key components
of a Sourcing Advisory RFP –
information about your company,
and information that you should
request of all advisory firm bidders.
To break it down we’ve highlighted
some specific recommendations
across both of the dimensions.
Drive Your Business
How to Select the Right
Sourcing Advisor
WGroup | RFP Sourcing Advisor
1
Conducting a
thorough analysis
of sourcing advisory
firms is key to finding
the best fit firm for
your project.
All Advisors are Different - Selection Starts
with the Right RFP
What to share about your
company:
Summarize:
• What your company is trying to
accomplish and why you are doing
this project. Explain your chief
outcomes from sourcing.
• Any recent transformation,
consolidation, and change efforts
impacting your operations.
• Any forecasted transformation,
consolidation, and change efforts in
the 1-2 year horizon.
• At a high level, operations at your
company and which business units
your IT organization supports. Are
global operations covered? Are
foreign entities involved?
• Major software packages, systems,
and applications you utilize
Detail:
• The size/magnitude of your IT
operations (budgets, locations,
employees, and any more granular
information if readily available)
• The scope of IT services that you
want evaluated
• What your infrastructure looks like
(Mainframe, UNIX, Linux, etc…)
• Your network (provider, insourced/
outsourced, domestic/global scope)

2. Tips For Developing RFP Sourcing Advisor
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Outline:
• Any key business cycles if any should
be considered (spikes in demand,
etc.)
• What work if any you’ve already
done in thinking about a sourcing
strategy (core vs. non-core analysis,
financial analysis, risk, culture, etc…)
• Your budget constraints or ballpark
cost if you have one in mind.
• Any timeline constraints (contract
expirations, renewals, key milestones,
etc…)
• A desired timeline on the Advisor
Selection Process (when questions
are due, when responses are due,
when on-site presentations will take
place if requested, when a decision
will be made, etc…)
What to ask of all bidders
responding to your RFP:
Explain:
• Their methodology including key
steps and deliverable types
• Their philosophy around sourcing
and advisory services (cost focused,
transformation focused, outcomes
focused, template driven, custom,
etc…)?
• The focus of their firm (procurement
staff-augmentation, management
consulting, IT strategy, etc…)
• How their methodology enables
comparison of costs to market, and
addresses evaluating the performance,
risk, cultural and process dimensions
for sourcing.
• Their knowledge of the service
provider space
• Their staffing model – how many
consultants would be on the project?
How is the engagement team
structured? Will they be onsite or
remote?
Provide:
• Resumes or biographies of the
proposed on-the-ground resources.
• Information about the team’s
experience in working in sourcing
advisory engagements.
• A detailed project timeline.
Require:
• A not-to-exceed cost, or a fixed price
bid, with documented assumptions.
• A description of time requirements
from your staff to support the process
(both from which roles/levels, and
how much time throughout the key
phases)
• Disclosure of any financial
relationships or partnerships with
outsourced / managed service
providers (including research
sales, event/website sponsorships,
workshops, client relationships in
other business units, and provider-
focused consulting)
• At least 2 executive-level references
and case studies
Be explicit that you
want to see the
actual engagement team,
not a sales or partner-
level oversight team.