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topics
- Advisory Market Lens
- AI
- Benchmarking
- BOT
- COLA
- Contract HealthCheck
- Cost & Run Optimization
- Digital Workplace Services
- F&A
- Field Services
- GCC
- GenAI
- Governance
- Healthcare
- HEX Index
- HRO
- L&D Advisory
- Managed Services
- Network
- Outcome based Pricing
- Outsourcing
- Perspectives
- Pricing Models
- Procurement
- RFP
- Security
- Service Desk
- Service Levels
- Str[AI]ghtTalk
- WAN
Learn about the 5 trends that are currently shaping the outsourcing industry. You don’t want to miss this!
To engage with HEX Advisory Group’s think tank click here.
Service Providers use financial engineering tools like discounts and credits to make deals lucrative. In many contracts, the service provider and the client contribute an amount towards innovation fund. These funds are utilized to carry out innovation projects that may include automation, digital solutioning, transformation, among others.
Navigating the intricate landscape of Population Health Management (PHM) pricing demands more than just numbers—it requires expertise. With over 60% of healthcare organizations already on the PHM journey and the market set for substantial growth, the stakes are high. Let us be your guide in unraveling the complexities of PHM investments.
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While analysts may have you believe that deal sizes increase due to vendor consolidation, we as advisors at HEX are assisting clients first-hand with vendor consolidation mandates targeting 20-25% spend reduction via effort elimination, hyper-automation, right-sizing, right-pricing, and 3rd-party Op-model and contractual transformation.
Rampant poaching and salary splurge in 2021-2022 is beginning to hurt IT providers in a price sensitive 2023. The Cost to Revenue per Employee is still off the charts prompting the providers to recalibrate their hiring and compensation strategies.
To read more perspectives from HEX Advisory Group click here.
Enterprise sensitivity towards disruptive technology, cost, performance, contractual and governance efficiencies is heightened. Pro-incumbency sentiments observed in 2021-22 has reversed and any lagging incumbent is on the chopping block.
To know more click here.
While solution & technology underpinning continues to be a hygiene expectation, enterprises have become much more sensitive to pricing, T&Cs, and governance when choosing their providers.
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Whether you’re building resources from scratch, transforming practices, or fine-tuning current direction, evaluating the effectiveness of training and its impact on learners and business KPIs can be complex.
Hex’s Advisory Services offer insights and solutions to address critical needs, ensuring that your training investments yield performance improvements and maximize ROI in the short and long term.
To know more connect with us here.
Instituting and monitoring the right KPIs helps streamline IT Operations & Budget.
HEX is helping CFOs, CIOs, and CTOs across USA, EU, and APAC to evaluate, recast, and secure the Health of their IT operations.
To know more click here.
Businesses are increasingly adopting SD-WAN to enhance their network infrastructure, streamline their operations and unlock cost savings.
Uncover the adoption triggers and sourcing models of SD-WAN to empower your business to make informed networking choices.
To know more kindly click here.
Automation is not just a buzzword in revenue cycle management—it is a transformative force that is driving healthcare organizations towards a future of enhanced productivity, reduced costs, and improved financial outcomes.
To engage with us click here.
Avoid tacos at 7-Eleven and coffee at Taco Bell. Source matters in everything you consume and that applies to Sourcing and Price Benchmarking trends too.
Don’t ask an advisor what the size of ChatGPT in sourcing deals will be in 2025 and don’t ask a researcher how best to calibrate your multi-million-dollar contracts. You are bound to be misled in either case.
There’s so much broad stroking on IT-BPO Sourcing & Pricing trends going around that I decided not to write a blog post but a MANIFESTO! 🙂
In a BOT model, service provider runs operations in initial stages with an option to transfer back to buyer later. While the operational risk lies with the provider in a BOT model, buyer should staff its employees in all the relevant management layers.
- The provider and client together implement a management oversight layer responsible for meeting deliverables and milestones for each phase.
- The intermediate management layer consists of a blend of provider and buyer employees, allowing the buyer to have easier access to the provider’s knowledge base and expertise
- Provider employees makes up the core workforce.
During and post-pandemic, Talent is among the most secular agendas across all firms pan industries. And as firms are scrambling to get the appropriate talent onboard, recruitment process operation is the backbone to execute the talent strategy. As a result, recruitment process outsourcing (RPO) industry has been seeing a sharp growth especially post H2 2021.
A combination of factors are in play that influence enterprises to outsource their recruitment processes.
As a result of the increasing complexity of the health plan environment, coordination of payments to multiple parties and a wide range of government and private health plans remains a challenge. Payment Integrity solutions are reducing the rising healthcare waste and fraud to ensure that claims are paid correctly, free of leakages. Using advanced analytics and data mining, patterns are identified across billions of lines of claims to predict errors in claims, thereby helping firms to reduce waste and focus on value-based care for patients.
We see broadly three types of engagement models in the Payment Integrity space:
- Business Process as a Service: Service provider offers Healthcare Payment Integrity to client as a service via a combination of platform (either proprietary or white labelled) and managed operations
- Platform License: Providers license the software to an enterprise who then manage the operation
- Software as a Service: Payment Integrity platform is offered on a SaaS model. The platform can be hosted on customer’s environment or on cloud. The engagement is based on an outcome-based pricing e.g., based on % of validated overpayments of recovery Per Member Per Month along with Fixed annual hosting price (if applicable)
What you control is governed by the metrics you measure and report on. But are the right metrics being measured? Traditionally, the functional and back-office metrics have been linked to the respective functional areas and the linkage to enterprise objectives, if at all, may not be evident. The Business Level Agreements (BLAs) framework can help fill this vacuum and ensure that the reported metrics are linked to the business priorities.
Some of the typical BLAs used in F&A processes:
- Accounts Payable: Error free payments, DPO, PO penetration
- Accounts Receivable: DSO, Cash Application Time, Average Time to Bill
- General Accounting: Days to close month-end, Reconciliation Cycle Time
A well thought out set of BLAs is a great mechanism for the support functions (and service providers) to see their impact on the business and the other way round. Enterprises are increasingly embedding these in the contracts to drive risk-sharing and partnership behaviours.
This is an output-based pricing model wherein the fees structure is based on the transactions / Resource Units (RUs) handled. Buyers should consider this model in the following scenarios:
- Fluctuating but predictable volumes with reasonable accuracy (availability of historical data to validate this and baseline is critical)
- Buyer landscape has lower degree of customization, and the processes are largely standardized
- Procurement has a positive experience of using pay-as-you-go models
- There are no restrictions (regulatory or compliance related) in sharing resources as the providers may deploy ‘bubble’ teams across multiple clients
- Relationship with the provider is strong and transparent and the providers have a complete visibility into the buyer’s demand funnel
SASE is an emerging technology and organisations must look at it as a journey rather than viewing it as a product. SASE converges the functions of network and security solutions into a unified, global cloud-native service. A SASE solution is meant to provide complete session protection, regardless of whether a user is on or off the corporate network.
The SASE solutions require investment in points of presence and extensive network coverage and on a maturity curve, only an absolute need to put security in the cloud should motivate to consider this as of now; the ecosystem is evolving very rapidly though.
SD-WAN allows for more agile ways of working and improves site availability through simplified and faster failover and relocation of traffic. It helps optimize costs as once implemented, it allows for better aligned demand and supply model to reduce underutilised assets and increase efficiencies as well as utilise a range of cheaper underlying connectivity.
While it offers benefits of technology-agnostic overlay and dynamic routing, without a clear strategy and transformation plan, many of the SD-WAN benefits can be limited or lost such as the ability to consolidate multiple network functions in a single platform.
Virtual captives are increasingly becoming an acceptable solution as they occupy a median position in a spectrum that is occupied by third party outsourcing on one end and captives on the other. For the mid-market enterprises, who end up experiencing a ‘small-fish’ syndrome with large third-party providers and captive remains a pipedream due to lack of capital/appetite, virtual captive offers best of both worlds. It is essentially a hybrid model wherein a local provider will provide all the necessary infrastructure (managed facility, hardware, connectivity etc), talent (sourcing, recruitment & HR), compliance and support services (accounting, compliance, IT operations) while letting the client retain full control of the operations.
Some of the specific advantages this sourcing model offers
- Higher degree of control: This model allows the enterprise to have full control of the business operations while the back-office set-up and processes are managed by the local provider. The enterprise leadership can practically walk-in and focus on business without having to worry about the ‘operational’ and ‘compliance’ overheads on Day 1.
- Transparent and Flexible Pricing Model: The most common construct is a cost-plus structure wherein the provider charges a mark-up on costs i.e., Talent (typically 70-85% of the costs), Infrastructure and Support function costs. Numerous as-a-service pricing models (GCC-as-a-service, Talent-as-a-service, Compliance-as-a-service etc) are also available for enterprises who may want to a bundled price or specific services.
- Reduced time to market: Mature providers are able to provide a significant jumpstart to the timeline leveraging their well tested operations templates and readily available workforce.
- Low Capex: Unlike a captive that involves significant upfront investments in infrastructure set up, this is a fully variable ‘Pay as you grow’ model. This is extremely useful especially for mid-market enterprises who can test the concept without necessarily having to block large sums of capital.
Contracts with remit ranging from managed services to supporting Digital Transformation need to clearly delineate the solution and the underlying people and commercial construct. The Capacity and Capability charters are very distinct and painting both with the same brush can lead to a less than an Optimum outcome for both parties.
In this hyperinflationary environment, COLA, once a standard provision, is gaining increasing prominence. And rightly so, as a typical managed services contracts spans 5 years and a robust COLA mechanism/clause that protects the interests of both parties is critical to an equitable contract. It is also in the interest of both Buyer and Seller to include a Benchmarking clause that allows potential commercial ‘reset’ in an uncertain business environment.
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Categories
- Advisory Market Lens
- AI
- Benchmarking
- BOT
- COLA
- Contract HealthCheck
- Cost & Run Optimization
- Digital Workplace Services
- F&A
- Field Services
- GCC
- GenAI
- Governance
- Healthcare
- HEX Index
- HRO
- L&D Advisory
- Managed Services
- Network
- Outcome based Pricing
- Outsourcing
- Perspectives
- Pricing Models
- Procurement
- RFP
- Security
- Service Desk
- Service Levels
- Str[AI]ghtTalk
- WAN
When a major airline went shopping for a next-gen Service Desk or “Smart Desk”, most vendors pitched GenAI as a wrapper. Only one showed how it would actually transform service delivery. That clarity turned a bid into a win.
Source: LinkedIn
You can’t outfly inflation, tariffs, or union strikes.
But you can outsmart them.
Efficiency isn’t a buzzword, it’s the survival kit your margins are begging for.
At HEX, we help airlines and logistics leaders smooth the turbulence with efficiency-led strategies that keep margins flying high.
Source: LinkedIn
Tier-2 cities, mid-market playmakers, and a surging R&D presence… The GCC map is being redrawn in real-time.
Discover the patterns that matter inside the HEX GCC Database because foresight is strategy.
Let’s explore the possibilities together: https://hexadvisory.com/contact/#mail
Source: LinkedIn
Think your SAM tool covers all the roads? Think again. Time to upgrade your Managed Service Provider into a Managed Service Integrator and master the full map!
Ready to navigate smarter? Let’s talk: https://hexadvisory.com/contact/#mail
Source: LinkedIn
Tired of linear pricing that punishes scale? HEX can help you align your costs with productivity gains, not ticket volume.
Presenting Part 4 of our series “Executive Cheat Sheet on T&Cs”, your no-fluff guide to Contracting 101. We break down dense terms and conditions into what they actually mean, why they matter, and how they impact your IT and BPO deals.
This week’s focus: Benchmarking
Source: LinkedIn
BAFO is dead. FAFO is how real decisions get done.
Benchmark first. Bid once. Done right.
Source: LinkedIn
Not all upgrades require a tech overhaul.
Sometimes, it’s just your operating model that’s screaming for attention.
Source: LinkedIn
Which of these moves had you already spotted?
There are more, this list is just the beginning.
Source: LinkedIn
The smartest enterprises are now productizing their capabilities and scaling domain expertise as a service, turning GCCs into Growth Drivers, not just Cost Centers.
Source: LinkedIn
