FAO Research is seeking sponsors for a research study that will quantify the benefits realized in hiring third-party sourcing advisors to facilitate business process outsourcing (BPO) engagements. FAO Research will interview corporate sourcing executives, based on the size of the company and the size of their outsourcing contracts to create a timely and relevant way of quantifying the effects -- positive and negative -- of engaging a third-party sourcing consultant or legal advisor. The initial research is already underway.

All companies to be interviewed have existing and/or recent outsourcing contracts in place and have worked with an external advisor to investigate outsourcing or shared services or set up captive centers.

The broad-based, quantitative research study will assess the actual benefits that corporations realize from hiring external consultants and lawyers to facilitate sourcing and procurement initiatives as well as explore shared services and setting up offshore captive centers. Topics to be covered include:

• Motivation for using sourcing advisors
• Reductions of business risks
• Return on investment
• Payback on fees
• Shortening the time of the sourcing process and time to benefit
• Degree of success in meeting business objectives by using a sourcing advisor

“There is no valid research anywhere to justify why companies would want to hire external advisors to facilitate their sourcing endeavors -- yet there should be,” said Lisa Ross, CEO of FAO Research.

Ross said there is a dizzying array of options for corporations as they look toward sourcing their critical business processes. They can harness the experience and insight offered by a sourcing advisor to navigate through an increasingly complex landscape that includes many more service provider candidates. Or, they can throw a ton of money into the pot and never truly understand whether they realized true ‘value’ from their significant, upfront expenditure.

"Our forthcoming analysis will uncover -- through an independent and verifiable methodology -- the quantifiable value and return on investment (ROI) that companies can expect by hiring a sourcing advisor," said Ross.

About this study

Contact FAO Research for information on sponsoring or otherwise participating in the study, "The ROI of Using a Sourcing Advisor for BPO".

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