It is believed that an IT / BPO Client Organization overinvests about 2 FTE (Full-Time Employee) worth of effort for every $100 million annual spend. Once the Contract starts delivering its potential value, cost benefits from Continuous Improvement (CI) starts showing, Best Industry Practices (BIP) starts bringing in competitive edge and Service Provider performance becomes predictable, Reduction in Administrative Effort (RAE) should be explored. As the number of Modules / SoWs / Supplements / Projects associated with a Contract grow, a RASCI structure should be established with your Service Provider to delegate as much reporting, time sheet keeping, SLA dash boarding, and operational data collection, spend data analysis, etc as possible. Most Service Provider organizations have SEI-CMMI Level 5 Certifications and have more effective processes and tools in place to track, record, monitor and report all kinds of data associated with your services, software, hardware, transactions etc. Instead of investing dedicated FTEs in tackling these activities, it is best to depend on the data obtained from Service Provider system.
Our CSAs will audit the following areas to analyze the potential of Reduction in Administrative Effort;
Our CSAs will work with you to incorporate a process around each of the above areas;