Rebuilding Value in UK&I

Burnt Oak Partners seek to rebuild the value of the relationship through its sourcing approach and innovative contracting philosophy. 

Why?

Outsourcing in the first decade of the millennia lost its way. The previous two decades of outsourcing have seen a change from transactional first and second generation outsources to financially engineered vehicles that deliver a wide range of service models. Many of these outsourcing deals have demonstrably not worked for a multitude of reasons. This has driven the market to an SLA culture and more restrictive contracts, resulting in a downward spiral of flexibility and customer satisfaction.  This has also driven relationships to a new low whereby customers believe the value in the relationship has eroded to the point of exasperation on both sides. The loss of relationship materially affects the effectiveness of the outsource.

Figure 1 Value lost from relationships source James Gardiner formerly of LTSB

This has led to outsourcing being perceived as a commodity exercise delivering little value to the customer. This in turn drives customers towards concentrating on reducing costs rather than generating value to their businesses. 

At Burnt Oak UK&I, we have successfully demonstrated that the right sourcing approach combined with collaborative relationship constructs delivers a sustainable model that regenerates the value of the relationship. We do this through a collaborative model with a strong focus on business involvement and creating a more flexible value chain. Burnt Oak won 3 GSA awards in 2018 for a project that challenged the status quo. 

If you would like to know more or just discuss the concept, contact William.mills@burntoak-partners.com