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0418ALS_BPO Benchmark AW:Layout 1 17/6/10 12:17 Page 1

BPO-Benchmark
Cut your outsourcing costs by 15-30% using Alsbridge’s Benchmarking Tool

The Tool
Alsbridge’s BPO-Benchmark Tool rapidly compares the pricing and financial elements of your contract to the very latest
market intelligence. BPO-Benchmark analyses the vital statistics of your deal, covering all the key metrics that matter
to your business. The result is a realistic appraisal of the competitiveness of your deal, clear priorities for review or
renegotiation with your supplier, as well as guidance on how the overall business case can be improved through changes
to scope or sourcing location.

The Data
BPO-Benchmark is driven by a unique database of BPO intelligence:
- Based on hundreds of deal, proposal and rate card data points
- Focused on Finance, HR, Payroll, Procurement and other business processes
- Data for UK, European and other global markets
- Filtering by sector, geography, scope, date, duration, deal value
- Proprietary data not available anywhere else in the market

The Analysis
BPO-Benchmark generates clearly documented insights about how your deal compares to the market. Analysis reports
range from the high level ‘Traffic Light Analysis’ that pinpoints the key cost reduction opportunities, to the more detailed
peer group comparisons resulting from a Deep Dive benchmark.

All BPO-Benchmark reports are focused on rapidly pinpointing opportunities to improve your outsourcing deal, through
direct comparison with the latest market prices.

Illustrative Screenshot 1 Illustrative Screenshot 2


Traffic Light Analysis FTE Pricing Comparison
What are the key cost saving opportunities? How does the service charge compare to our peer group?

£K Labour Arbitrage
100 Baseline fully loaded rate / FTE
To be fully loaded rate / FTE

80

60

40

20

0
Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Case X

Average
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The Metrics
The BPO-Benchmark analysis is based on a unique taxonomy of commercial metrics. They are deliberately designed
to peel away the complexity of price comparison by focusing on the fundamental building blocks of an outsourcing
deal, for example:

Service delivery metrics Transition metrics Value metrics


• Fully loaded delivery rates • Supplier transition costs per • % labour arbitrage
• Infrastructure and in scope FTE • % process efficiency
management charges per FTE • Client transition costs per improvements
• % labour arbitrage in scope FTE • % run rate reduction
• % process efficiency • Supplier transition days per • ROI
improvement in scope FTE
• Payback period
• Consulting and project rate cards

The Results - Example


Working with Alsbridge benchmarks, this £M
leading media company identified a major gap 90

between the service charge it was paying and


80
the market average, based on peer group Alsbridge guidance
reduced client
comparisons from the sector. Alsbridge then 70 outsourcing costs
by £15m
provided renegotiation support, and as a result
60
the client rapidly secured a £15m (19%)
reduction in service charges. 50

40

30
F&A deal costs
Before and after Alsbridge engagement 20

Alsbridge value to client


10
Outsourcer management charges
Outsourcer delivery charges 0
Pre Renegotiation Post Renegotiation

The Feedback
"Kimberly-Clark recently turned to Alsbridge - With ongoing outsourcing deals for Applications, Infrastructure,
Finance, HR and Procurement all moving towards contract expiry, we needed to rapidly decide whether to renew,
renegotiate or recompete each of these towers.

For each of the 5 contracts Alsbridge provided expert consultants, market price benchmarks and strong points of view
about current and future opportunities in the marketplace. Alsbridge deployed its benchmarking database to market
test our contract pricing and to identify whether there was value in recompetition.

Alsbridge's independent perspective also challenged our thinking, testing our received assumptions and exploring new
opportunities. In short Alsbridge advice gives us assurance that our outsourcing strategy is robust and fit for the future."
Finance Director, Europe and Head of Global Services Delivery, Kimberly-Clark

Contact
For further information, please contact Paul Morrison on
+44 (0)20 7242 0666 or paul.morrison@alsbridge.eu Alsbridge plc
22 – 24 Ely Place
London
EC1N 6TE
UK
Alsbridge Tel: +44 (0)20 7242 0666
Telling it like it is.
No agenda. No cheerleading. Just Results. www.alsbridge.eu