Vendor Consolidation

Since 2001/02, globalization services have become popular, primarily as a method for leveraging labor arbitrage. Since the contracts were relatively small and the benefits seemed obvious, little central administration or management existed. Corporations are now realizing that dozens of providers are an unwieldy combination that creates unknown and unnecessary risks. As a result many large companies are currently consolidating the number of service providers.

Webcast: Service Provider Consolidation

Corporations will inevitably have relationships with a wide range of companies. On one hand, the firm will have contacts with global providers, and on the other hand, it will also have many services provided by local, niche firms. The right choice is never an absolute towards global or local providers, but an integrated combination that gives the company improved governance and manages risk through a streamlined combination of contracts.

Collabera provides a five-step process through which clients can migrate current providers into a consolidated and manageable list.
Collabera’s five-step approach includes:

Define Company Requirements: Through discovery interviews or simple survey techniques, and identify business requirements and gaps in the current capabilities.
Inventory Vendor Relationships: Create a list of current service providers, to bring providers into balance so that the company can control risk.
Create Requirement Documents: Create a consolidated strategy, based on business requirement and inventories of current providers. This involves defining categories of required providers.
Select Consolidated Providers: Create a short list of finalized vendors and then through a variety of techniques such as RFPs, reverse the bids, and finalize the list of vendors.
Transition: The most difficult phase as it requires a change, but if done properly, the corporate manageability can be increased dramatically.
Since poor governance is often the reason for an inordinate number of providers, Collabera helps you in establishing a strong governance organization, which will be critical, and will help you maintain control over the process.

Vendor Consolidation

Webcast: Service Provider Consolidation

Brochure

Vendor Consolidation

Webcast Presentation

Consolidating Service Providers