Learn how ISG’s pharmaceutical consultancy and benchmark analysis for a global pharmaceutical company shored up its major business process outsourcing (BPO) contract.
Opportunity
Benchmarking uncovers gaps in performance and cost and charts the best path forward. Nine years into a business process outsourcing (BPO) contract for finance and accounting services in support of 300 full-time employees, our global pharmaceutical client asked ISG to review its original master services agreement and benchmark its terms, pricing, fees and service levels.
Imagining IT Differently
ISG analyzed a budget of $11,000,000 for services in three countries. A thorough benchmark review recommended a change to a fixed-price productivity model in one country, implementation of a continuous improvement process for all service levels, and the addition of more services to the master services agreement.
Future Made Possible
- Potential savings of between $2,000,000 and $6,000,000 over five years
- Regular service provider management representation guaranteed business continuity and internal controls
- Implementation of a more market-based methodology for determining inflationary adjustments
- Additional productivity commitments and regulatory compliance by the service provider to reduce the burden on our client and minimize contractual risk going forward
