Provider & Contract Management<\/h1>\n<\/div><\/div><\/div><\/div><\/div>The need for provider & contract management<\/strong><\/p>\n<\/div><\/div><\/div>Value leakage during contract duration<\/h2>\n<\/div>Having the right partners and contracts is good, but not enough to realize the full potential in IT sourcing. During the contract period, the potential of the contract is often not realized and may even lose value. The term contract value leakage refers to the difference between the potential value of an agreement and the value actually realized. Such leakages may occur when the contract basis is not optimal or during execution due to lack of understanding of the contract content and inability to execute terms. As modern contract constructs, particularly in the IT environment, become more complex and encompass a broader range of end-to-end capabilities, it is important for organizations to establish internal provider and contract management capabilities.<\/p>\n<\/div><\/div><\/div>
Key drivers for value leakage<\/h3>\n<\/div>- <\/i><\/span>\n
UNDER-DELIVERY AND OVER-BILLING<\/strong>
\nup to 10% invoice \/ revenue leakage due to under-delivery and over-billing<\/p>\n<\/div><\/li>- <\/i><\/span>\n
POOR EFFICENCY
\n<\/strong>due to highly manual governance, credits tracking, and claims & disputes management<\/p>\n<\/div><\/li>- <\/i><\/span>\n
INCONSISTENT TRANSPARENCY
\n<\/strong>as delivery teams lack clear visibility of contractual obligations leading to poor alignment with clients<\/p>\n<\/div><\/li>- <\/i><\/span>\n
STRAINED RELATIONSHIPS
\n<\/strong>due to delivery issues and lack of transparency creating mistrust in the relationship<\/p>\n<\/div><\/li><\/ul><\/div><\/div>![\"Provider](\"https:\/\/navisco.com\/wp-content\/uploads\/2022\/02\/Provider-Management-value-leakage.png\" "\\"Provider")
<\/span><\/div><\/div><\/div><\/div><\/div>Provider and contract management<\/strong><\/p>\n<\/div><\/div><\/div>Addressing value leakage<\/h2>\n<\/div>The goal of effective provider management is to ensure that outsourced services are delivered at the agreed quality and cost. For this purpose, internal capabilities in the areas of demand, relationship, service portfolio, service level & contract, risk & compliance management and IT financial management must be in place or built up. These capabilities should be supported by appropriate processes and tools.<\/p>\n<\/div><\/div><\/div>
![\"Value](\"https:\/\/navisco.com\/wp-content\/uploads\/2022\/03\/Value-Leakage-1.png\" "\\"Value")
<\/span><\/div><\/div><\/div>Requirements for effective provider management<\/h3>\n<\/div>- <\/i><\/span>\n
People & Skills<\/strong>
\n<\/strong>Responsible personnel for provider management with the right competencies in the area of contract, relationship and service management.<\/p>\n<\/div><\/li>- <\/i><\/span>\n
Toolset<\/strong>
\n<\/strong>Integrated tool platform for service integration & management (SIAM) and digital provider management (DPM).<\/p>\n<\/div><\/li>- <\/i><\/span>\n
Processes<\/strong>
\n<\/strong>Processes for the strategic and operational service management & integration (SIAM) and provider management.<\/p>\n<\/div><\/li><\/ul><\/div><\/div><\/div><\/div>Navisco provider management framework<\/strong><\/p>\n<\/div><\/div><\/div>Benefit from our proven framework<\/h2>\n<\/div>Our comprehensive framework for efficient and effective provider management includes reference models in the area of competencies and roles, processes and tools as well as interfaces for service integration & management (SIAM).<\/p>\n<\/div><\/div><\/div>
Relationship Management<\/strong><\/p>\n<\/div>
The need for provider & contract management<\/strong><\/p>\n<\/div> Having the right partners and contracts is good, but not enough to realize the full potential in IT sourcing. During the contract period, the potential of the contract is often not realized and may even lose value. The term contract value leakage refers to the difference between the potential value of an agreement and the value actually realized. Such leakages may occur when the contract basis is not optimal or during execution due to lack of understanding of the contract content and inability to execute terms. As modern contract constructs, particularly in the IT environment, become more complex and encompass a broader range of end-to-end capabilities, it is important for organizations to establish internal provider and contract management capabilities.<\/p>\n<\/div><\/div><\/div> UNDER-DELIVERY AND OVER-BILLING<\/strong> POOR EFFICENCY INCONSISTENT TRANSPARENCY STRAINED RELATIONSHIPS Provider and contract management<\/strong><\/p>\n<\/div> The goal of effective provider management is to ensure that outsourced services are delivered at the agreed quality and cost. For this purpose, internal capabilities in the areas of demand, relationship, service portfolio, service level & contract, risk & compliance management and IT financial management must be in place or built up. These capabilities should be supported by appropriate processes and tools.<\/p>\n<\/div><\/div><\/div> People & Skills<\/strong> Toolset<\/strong> Processes<\/strong> Navisco provider management framework<\/strong><\/p>\n<\/div> Our comprehensive framework for efficient and effective provider management includes reference models in the area of competencies and roles, processes and tools as well as interfaces for service integration & management (SIAM).<\/p>\n<\/div><\/div><\/div> Relationship Management<\/strong><\/p>\n<\/div>Value leakage during contract duration<\/h2>\n<\/div>
Key drivers for value leakage<\/h3>\n<\/div>
\nup to 10% invoice \/ revenue leakage due to under-delivery and over-billing<\/p>\n<\/div><\/li>
\n<\/strong>due to highly manual governance, credits tracking, and claims & disputes management<\/p>\n<\/div><\/li>
\n<\/strong>as delivery teams lack clear visibility of contractual obligations leading to poor alignment with clients<\/p>\n<\/div><\/li>
\n<\/strong>due to delivery issues and lack of transparency creating mistrust in the relationship<\/p>\n<\/div><\/li><\/ul><\/div><\/div><\/span><\/div><\/div><\/div><\/div><\/div>Addressing value leakage<\/h2>\n<\/div>
<\/span><\/div><\/div><\/div>Requirements for effective provider management<\/h3>\n<\/div>
\n<\/strong>Responsible personnel for provider management with the right competencies in the area of contract, relationship and service management.<\/p>\n<\/div><\/li>
\n<\/strong>Integrated tool platform for service integration & management (SIAM) and digital provider management (DPM).<\/p>\n<\/div><\/li>
\n<\/strong>Processes for the strategic and operational service management & integration (SIAM) and provider management.<\/p>\n<\/div><\/li><\/ul><\/div><\/div><\/div><\/div>Benefit from our proven framework<\/h2>\n<\/div>
![\"DPM](\"https:\/\/navisco.com\/wp-content\/uploads\/2022\/03\/DPM-1.png\" "\\"DPM")
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