Sourcing Advisory
Digitalization, globalization and the emerging service economies create challenges and opportunities for organizations across industry sectors. Business leaders need to continuously evaluate their portfolio of technology and services, their sourcing strategies, as well as their capabilities to address these.
PIR supports clients in all stages of their sourcing lifecycles, from strategy, through design and sourcing, transition, management of contracts and vendors as well as reevaluation of existing positions, relationships and development of capabilities to establish, nurture and drive value together with external business partners.
The pace of change has never been higher within the area of technology and digital services. Technology markets, customer demands, and internal stakeholder environments are shifting. Concepts like Cloud, Agile, Devops and hybrid work are challenging traditional delivery models, sourcing processes and contracting models. Market constraints are shifting the bargaining power between buyers and sellers and it is becoming increasingly important to package deals wisely. We support clients in reviewing sourcing strategies, repositioning contracts relationships and in sourcing for next generation technologies and services.
Shared Services and Business Process Services organizations are shifting focus from scale, labor arbitrage and standardization towards digitalization, automation, end user experience and transformation. Digital-first providers and XaaS providers are increasingly challenging traditional service providers. Business models are shifting. It is becoming increasingly important for buyers to manage risk and complexity in changing environments with ecosystems of vendors. PIR supports clients in developing sourcing strategies, deals and relationship to allow for transformation, flexibility and business outcomes.
Sourcing processes tailored to achieve the desired relationships are more likely to deliver on your strategic goals with your service providers. E.g., you are less likely to achieve a trust-based partnership with strong elements of innovation through a competitive, document driven tender process. Likewise, if your aim is speed, and agility you need to tailor your sourcing model and processes accordingly. PIR provides clients with the experience, methods and tools to establish and develop the right type of contracts and relationships with their vendors and service providers in order to deliver on their sourcing strategies. Our value proposition in this area is appropriate processes, combined with a unique combination of technical, commercial and legal capabilities, adapted to fit your specific agenda and delivered in a collaborative way.
Poorly managed relationships and contracts are common reasons for value leakage, service degradation and unfulfilled business cases.
Conditions, focus, scope and people change during lifetimes of large service contracts – in many cases strategies change as well. Robust and sufficient capabilities in terms of governance, resource, skills and tools are critical in order to manage contracts, relationships and deliver expected business outcomes. PIR supports clients in developing vendor and contract management capabilities, and in remediation and repositioning of service provider contracts.
Telecom is our origin and heritage, and our experience reach from contract management of the earliest GSM systems to sourcing of 5G and efficiency improvement projects within telco procurement. Since its founding in 2001, PIR has participated in more than 130 mobile system procurement projects and several OSS/BSS procurement projects, gaining profound knowledge and experience in this field.
Launch of 5G is in the short term, for most operators, first looking at deployment of 5G NSA, while 5G SA roll-out is planned for the following year(s). It is however key for operators to look at the 5G roll-out plan holistically, meaning that planning for 5G also must consider their current 2,3 and 4G networks.
Spectrum strategy and modernization (upgrades and even expansion) of the legacy networks will be pivotal as part of the 5G strategy in order to offer coverage through 5G on legacy frequencies and capacity.
In addition to deep category expertise, PIR has bespoke contract templates which have been developed over time, securing the purchasers interests for the full lifetime of the investment.
Sourcing Advisory Engagements
Network Sourcing
The client wanted to source brownfield establishment with full turnkey installation of LTE RAN, Core and Transmission, as well as full turnkey installation of a post prepaid billing system and additional modules (OSS/BSS).
Industry: Telecommunications
5G Sourcing
The client conducted a modernization and expansion project for LTE and 5G Mobile Network.
Industry: Telecommunications
Legal Advisory for IT Investments
The client wanted legal and sourcing advisory in relation to IT sourcing. Overall aim of the sourcing activity was to secure cost efficiency and risk mitigation.
Industry: Media & Entertainment
Insights in Sourcing Advisory
Insight
Strategy Alignment
Companies are facing more challenges today than ever and Procurement can be part of the strategy to handle these challenges. Procurement could play a center role in increasing competitiveness by e.g., mitigating cost increase, securing sustainability targets, enabling digitalization on company or functional level, and ensuring a flexible supply chain. When Procurement is Done Right, the Procurement Strategy is an integral part of and aligned with the overall business strategy.
Insight
Future Proof Operating Model
As the maturity of the Procurement organization increases there is a clear move to a more centralized operating model to ensure economies of scale and skill. However, there is a risk that this model increases the distance to the actual business.
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Cost Optimization
Our methodology for cost optimization is not just an elevator pitch, you get practical solutions, feet on the ground, and both top- and bottom-line result.