This second blog in the series of nine blogs on the sourcing lifecycle focuses on developing a project team that can successfully run a sourcing process.

Running a successful sourcing process is time consuming, resource intensive and intellectually demanding. The following challenges are often experienced:

  • Achieving the timescales
  • Avoiding increased or unexpected programme costs
  • Achieving confidence in the business case
  • Managing changing requirements or the conflict between requirements
  • Negotiating a mutually advantageous contract
  • Performing an objective assessment of potential suppliers’ suitability
  • Managing stakeholders and ensuring active, executive sponsorship

It would be foolhardy to embark on a major sourcing programme without a suitable project team that is empowered to act on behalf of the organisation as a whole. A fit-for-purpose project team structure, with the prerequisite level of central empowerment, needs to be put in place. The critical roles required for the sourcing process include:

  • Programme Manager
  • Legal & Contractual Team Lead
    • Legal and Contractual Expert(s)
    • Human Resources Expert(s)
    • Compliance/ Risk/ Audit Specialist(s)
  • Commercial Team Lead
    • Sourcing/ Procurement Specialist(s)
    • Commercial/ Business Case Analyst(s)
    • Finance Expert(s)
    • Tax Expert(s)
  • Technical/ Service Delivery Team Lead
    • Technical Subject Matter Expert(s)
    • Service Delivery Subject Matter Expert(s)
    • Security Subject Matter Expert(s)
  • Due Diligence Lead

Depending on the type and scale of the services being sourced additional team members may be required. The amount and type of resource required will also vary significantly during the sourcing process. For example, more legal and contract negotiation expertise will be required in the later stages of the process.