Industry: Professional Services Focus: Benchmarking
A global professional services firm wanted to renegotiate its transaction management contract with a single service provider, but needed independent confirmation of market trends in contract terms and pricing. We benchmarked the agreement against similar global outsourcing contracts to test the competitiveness of the commission rebate structure and compare six other key metrics to industry standards. We also analyzed all transactions completed during the prior two years and proposed a compromise to resolve outstanding issues involving commissions and rebates. A new transaction management contract with a simplified commission structure and new service level agreements to improve performance management was quickly accepted by both parties.
Industry: Investment Services Focus: Benchmarking
A global investment bank had outsourced most of its facilities management to three service providers. Customer service levels and satisfaction were very important to the bank, but there was pressure for cost reduction in the company across the board. And although the bank tracked over 50 performance metrics, it was unclear whether costs were “at market” or not. Capstan benchmarked the contract, service levels and the costs against BOMA and other industry standards for key locations and identified areas that appeared above market. Then we summarized the business case for contract renewals versus the potential cost savings of a competitive bid for the entire portfolio. The client’s Facilities and Procurement groups met, reviewed our analysis, and decided to renegotiate with the incumbent suppliers using our report as negotiating leverage.
Industry: Financial Services Focus: Benchmarking
For a global credit card company that had outsourced most of its real estate and facilities management to a single provider, we benchmarked the contract terms and the service provider’s performance against industry standards. The result was a stronger negotiating position for the client, which ultimately renewed the contract at a significant cost savings.
Industry: Financial Services Focus: Benchmarking and Sourcing Strategy
For a leading publishing company, we benchmarked the existing global full service contract against other recently negotiated global agreements, and highlighted areas for improvement in contract terms, management fees, transactions rebates/discounts, project management and technology. Later, we conducted a sourcing strategy assessment to help the client decide whether or not to pursue a new outsourced management solution and contract structure. The strategy ultimately led to an RFP process and selection of a new global provider.
Industry: Aerospace Company Focus: Organization Design, Benchmarking and Sourcing Strategy
Capstan worked with the corporate real estate group of an aerospace giant to evaluate the pros and cons of centralizing global real estate and project management for six operating divisions and 70 million square feet of space. We provided an industry perspective on best practices by summarizing organization models from ten other Fortune 100 global companies including strengths and weaknesses of each model. We helped build consensus for change by quantifying the potential benefits of cross utilization of space and volume discounts on service provider contracts. Next, we studied the market for transaction rebates by benchmarking the proposed contract against eight similar contracts, including the value of consulting services often delivered at little or no cost to major clients. We then assisted in negotiating a transaction management outsourcing contract to support the implementation of the first phase of the reorganization.
