Picking Your Outsourcing Advisory Firm

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    I’ve just finished one of the most interesting reports on outsourcing I’ve ever read — interesting because it tackles a topic that is rarely discussed by analysts: outsourcing advisory firms.


    These are firms — such as TPI, EquaTerra and Pace Harmon — that advise clients on outsourcing. The services offered often include strategy development, supplier selection, contract negotiation, sourcing deal implementation and ongoing governance.


    Although the report, "Overview of Outsourcing Advisory Firms," by Forrester, doesn’t provide pricing details (my understanding is that frequently firms are paid a percent of the total value of the sourcing contract), it does share insight on what distinguishes one firm from another. For example, neoIT specializes in offshore IT deals and provides custom metrics for each customer. EquaTerra has made a reputation for advising on global business process outsourcing deals. There’s also a chart that lays out the size of each firm and how many analysts are dedicated to the sourcing part of the business.


    Are its 13 pages worth $775? It seems a bargain considering what your company could lose by not bringing in this kind of expertse.


    Forrester interviewed Deloitte, EquaTerra, neoIT, PA Consulting Group, Pace Harmon, PricewaterhouseCoopers, RampRate and TPI.

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