Sourcing in IT Management - The LEXTA Way
Range of Services
Due to our broad knowledge of the market combined with a procedure model that can be adapted flexibly, LEXTA can assist and consult in all areas, from the sourcing strategy to the accompanying RfP process including contract conclusion up to accompanying transition. The LEXTA portfolio includes following areas:
- Developing and validating a sourcing strategy
- RfP management and execution
- Providing best practices with regards to templates, architecture and technology
- Creating service agreements / certificates, SLAs and RfP documents
- Select service providers with the support of the LEXTA service provider database
- Support for due dilligence
- Moderation and execution of contract negotiations
- IT benchmarking for business cases and price indications
- Implementation of sourcing strategies
- Development of retained IT, provider and contract management
- Accompanying transition
- Audits and reviews (e. g. contract reviews and optimization, information security)
At LEXTA, we accompany our clients during the sourcing process in tune with the motto: „Rightsourcing not outsourcing“. For us, this means not following a rigid concept but constantly looking for the best solution that suits our clients’ individual and sector specific situation.
Besides the necessary flexibility, our experienced consultants contribute extensive expertise and wide-ranging knowledge of the industry as well as necessary soft skills such as authenticity, seniority, negotiating skills and motivational abilities. Despite lively exchanges with service providers and the market in general, LEXTA is a completely independent company: We are neither in partnerships with service providers nor further dependencies that could influence the sourcing advisor’s judgment.
The „LEXTA Way“
A “normal sourcing project” does not exist. Each project depends on the client, the sector, and the situation. In general sourcing projects can be divided into 5 similar phases that can be combined to best suit your needs:
- Strategic Review
- Sourcing Strategy
- Selection of Providers
Typically, in the first phase of the procedure we primarily assess the current situation. Using indicative benchmarks we assess current
services in the context of current costs and compare these to the market. A comparison of purchased services to those that are actually
necessary also forms a central part of this assessment.
The result of the first phase is extensive and balanced stocktaking.
In this project phase, LEXTA primarily offers support in form of templates, know how, and experience and assists in the structuring of the procedure. The indicative benchmark is naturally also part of LEXTA’s product portfolio.
After assessing the current situation, in the following step we define the target situation or, to be more precise:
The sourcing targets.
When defining targets, we develop an IT service catalog and bundle IT services in close coordination with our client, frequently with
a stronger focus on the client’s core competencies.
We establish business cases for various possible sourcing scenarios and carry out SWOT analyses.
In a final step, by means of decision templates one sourcing strategy is selected and agreed on.
In this project phase, LEXTA ensures a structured and efficient process due to standardized process models. Likewise, LEXTA is able to calculate business cases or develop various approaches.
The third phase covers the actual tendering. This phase begins with the compilation of relevant tender documents, among others service
certificates, general agreements, SLAs as well as necessary supporting documents (e. g. information security requirements for suppliers).
Reviewing internal resources to steer providers is also part of this phase.
As soon as we have prepared tendering, a selected long list of providers can be invited to an RfI (Request for Information). The selection is based on the LEXTA service provider database in which essential key data such as contact persons, service portfolios, locations as well as estimates from previous sourcing projects is entered. This ensures that from the start only suitable providers are considered in the process. A so-called „Competitive Dialogue“ and mutual challenging cull unsuitable providers. The remaining providers receive the RfP (Request for Proposal). These providers are requested to deliver a completely priced and comparable offer. Offer presentations, exploratory talks and bid evaluations shorten the list of possible providers until only 2 – 3 bids qualify for the so-called short list.
Due to broad knowledge of the market, LEXTA offers extensive knowhow in selecting providers. Thanks to tried and tested templates, we are able to simplify and accelerate the compilation of tendering documents.
In the subsequent project step contract negotiations are held with the remaining providers. Due diligence, LOIs (Letter of Intent) as
well as various ad hoc benchmarks are part of these negotiations, to name a few. In agreement with the providers we also finalize the
Thanks to experienced negotiation specialists, LEXTA can offer support during negotiations and if necessary lead negotiations.
Finally, transition begins. In this phase service content is transferred to the selected IT provider. Transition covers the transfer of applications and services – roughly speaking the entire transfer of operations. Steering knowledge transfer, developing contracting party competence and competent support of migration and transformation processes are all major factors for a successful transition.