News @ TPI

TPI Deploys New Service Offering to Serve Smaller, Less Complex Outsourcing and Offshoring Initiatives


HOUSTON, June 21, 2007 - TPI, the largest sourcing advisory firm in the world, has begun deploying a new service called Assisted Sourcing Transaction (AST) that is designed to empower organizations to apply industry best practices toward their less-complex outsourcing and offshoring initiatives. Through AST, organizations’ strategic sourcing teams gain access to market expertise without the cost of having a team of consultants on-site full-time.

TPI saw the need to develop AST after studying its own proprietary Index that profiles the current state of the industry. The trend among outsourcing contract awards shows the total contract value (TCV) of the average sourcing agreement is falling, even as the active sourcing engagements at any one time are increasing. In fact, almost half of the transactions TPI advised in 2006 were awarded at values less than $50 million. AST helps companies align their advisory costs with the size of their sourcing transactions.

AST equips client strategic sourcing teams to perform the majority of the transaction design and negotiation work. Specifically, it provides a source of market intelligence for more strategic decision making, and risk mitigation via access to expert advisors as needed. In addition, AST assists in the establishment and enhancement of corporate sourcing centers of expertise, which serve to enable continual learning among client team members by supplying essential market data, industry-recognized templates, and expert review and guidance at defined intervals.

In addition to the client being prepared to design and implement a sourcing relationship, there are several main criteria that need to be reviewed when considering whether a client or transaction is a good fit for AST, including:

  • The client should possess prior experience with outsourcing contract structuring and negotiations
  • The scope of the transaction should be less complex, such as national or departmental rather than enterprise-wide
  • The transition should involve limited transition of capital assets and/or human resources to the selected service providers
  • The client should be prepared to administer financial modeling and scenario-based comparisons
  • Client should have experience with a model of remote coaching and frequent checkpoints
  • A dedicated, experienced team is required to drive the effort

“We are deploying AST because internal organizations are serving ever-greater roles in the design and implementation of outsourcing and offshoring strategies. It is essential that those teams are equipped to achieve their sourcing goals,” said Mike Slavin, partner and practice leader, Global IT Advisory Services for TPI. “TPI’s expertise, knowledge and intellectual assets will support less-complex sourcing transactions in a fashion that empowers the strategic sourcing organization, helping clients become more proficient at achieving their outsourcing and offshoring objectives.”

About TPI
TPI is the founder and innovator for the sourcing advisory industry, and the largest sourcing advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise of accomplished industry experts who possess extensive practical experience, TPI collaboratively works with organizations to help them optimize their business operations through the best combination of insourcing, offshoring, shared services and outsourcing. For additional information, visit www.tpi.net.