Companies Losing Up to 30 Percent of Expected Value from Outsourcing Due to Ineffective Management of Contracts, according to TPI

• Leading sourcing advisor launching Europe's first outsourcing governance managed service in response to growing client demand
• TPI Governance Services™ to help clients maximise return from outsourcing

LONDON, November 24, 2011 ―TPI, an Information Services Group company (ISG) (NASDAQ:III) and the leading independent sourcing data and advisory firm in the world, today announced the European launch of its managed service for outsourcing governance, TPI Governance Services™.

TPI research has found companies lose up to 30 percent of the expected value of their outsourcing transactions through poor governance. TPI Governance Services offers a combination of management expertise, processes and tools to help companies reduce value leakage from their outsourcing agreements and third-party contracts.

“With the success and continued growth of TPI Governance Services in the Americas and Asia Pacific, we have seen increasing client demand for it in the European market,” said Claude Marais, Partner and Managing Director, Governance Services. “We’re looking forward to helping both large and medium-sized companies, which are often reliant on multi-sourcing, to maximise the value from their outsourcing relationships.”

Covering all key aspects of relationships, performance, contract and financial management, TPI Governance Services use clear processes, strong management and technologically advanced software to improve overall sourcing management. The service has proven a success with clients, with TPI currently managing nearly $10 billion in total contract value.

“We are very excited that this offering has now launched in Europe,” said Duncan Aitchison, Partner & President, EMEA. “It can often be difficult for companies to grasp just how complex it is to manage an outsourcing contract. Many fail to achieve their intended benefits, less because the goals were ill-conceived than due to an underestimation of the rigor, robustness and skills required to secure the results that the contract was intended to deliver.”

As multi-sourcing becomes increasingly prevalent within large companies and the public sector, contract governance will become more important. TPI uses 30 separate processes to help manage contracts, performance, relationship and financial aspects of outsourcing contracts, alongside sophisticated technologies to track sourcing management through intensive back-office operations.

“Experience across all our existing clients show that at least 2.5 percent of the annual value of an outsourcing contract can be recovered in hard dollars savings – several times what it costs for our services,” Marais said. “When you look at all the different areas where companies are losing money, especially in the current uncertain economic conditions, the benefits of a more mature governance model are clear. But often, t his can be achieved only with the assistance of a third party.”

For more information on TPI Governance Services, please visit http://www.tpi.net/web/services/governance-services/

 

About TPI
TPI, an Information Services Group company, is the founder and innovator of the sourcing advisory industry and the leading independent sourcing data and advisory firm in the world. TPI advisors are expert at a broad range of business support functions and related research methodologies. Drawing on their deep functional domain expertise and extensive practical experience, they collaborate with organizations across all major industries to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. For additional information, visit www.tpi.net.

About Information Services Group
Information Services Group (ISG), founded in 2006, is a leading technology insights, market intelligence and advisory services company. ISG has three go-to-market brands: TPI, the leading independent sourcing data and advisory firm in the world; Compass, the premier independent global provider of business and information technology benchmarking, performance improvement, data and analytics services; and STA Consulting, a premier independent information technology advisor serving the public sector. The company has nearly 700 employees and operates in 21 countries. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees. For additional information, visit www.informationsg.com.

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