Whether or not a benchmark meets your objective is contingent on how you approach a benchmarking initiative.
Benchmarking is an integral part of any contract evaluation for reassurance of the value on offer. However, for the benchmarking exercise to deliver real and meaningful value, it is important to have a holistic benchmarking approach in partnership with experienced advisor with access to relevant data with context details as well as practical deal experience.
Financial Engineering Mechanisms are now more important than ever.
With the increasing need for contractual and financial flexibility, financial engineering has become more important than ever in outsourcing contracts structuring. In our experience, winning bids reflect flexibility to align with buyer motivation.
Typical buyer considerations could include:
- Avoid upfront surge in expense
- Consistent spend or cost savings over the deal term
- Risk sharing by service provider till end of deal term
