The benchmarking results are one input to a sourcing strategy. Other inputs may include interviews with the client’s CRE management team, Service Assessment and Process Maturity surveys, interviews with service provider account team leaders and reviews of QBR reports, customer satisfaction surveys, audit reports, etc.
Even though the quality of the people, processes and technology offered by the major service providers has improved tremendously, we rarely find clients who are satisfied with all aspects of their relationship with their provider. Typical complaints are that the account team is not supported adequately by the provider’s “platform”, and that innovations and best practices to reduce costs or improve services are fewer than promised.
However, we are seeing many clients choose to renegotiate rather than go to market. Successful renegotiation can save the time and money needed to transition to a new provider, and the baseline costs and terms of the contract can usually be improved with providers who are eager to retain the business. And if the negotiations fail, the client has the option to go to market and include the incumbent in the process.