Networks are at the heart of every enterprise, yet they are often viewed and managed as a commodity service, added-on to an outsourcing agreement, if even considered. With the rapid deployment of IP base technology, the convergence of voice, data and video onto a single network and the specialized requirements of mobile workers, we at TBI believe that the procurement of managed network services requires specialized skills and experience.

TBI’s Net Sourcing practice can help enterprises identify “best-of-breed” outsourcing partners to enable the delivery of IP based “converged” network services. We offer in-depth financial, technical and operational expertise and experience; rigorous fact-based processes and complete commitment to client success.

Networks are historically managed as commodity services, yet enterprises are increasingly seeking ways to cost effectively enable increasingly complex applications for mobile workers, partners and customers. IP based networks, deliver on the communications promise of reliability, ubiquity and lower costs, yet converging voice, data video onto a single network requires specialized skills not normally seen in traditional voice and data network “towers” or in IT outsourcing providers. No where else in IT outsourcing is the need for “best of breed” sourcing more apparent than in networking.

In response to our clients increasing need for specialized support around the issues of network design, procurement and operation, TBI has developed a dedicated managed network services outsourcing practice -- Net Sourcing.

At a high level the Net Sourcing process is divided into five discreet yet interlinked phases:

Baseline analysis and requirements definition
Request for Proposal development
Vendor response evaluation and selection
Services contract negotiation
Implementation and operation / contract governance

Outsourcing remains a key strategy for many organizations, enabling them to focus upon core activities, leverage third party expertise and reduce costs. However, the specialized infrastructure and skills required in the networking space has resulted in a shift of emphasis to “best-of-breed” outsourcing for communications services.

TBI recognizes that delivering 100% availability of network resources across multiple networks and operators in different geographies requires the skills of a specialized Managed Network Operator and MNOs are increasingly demonstrating that they are better suited to delivering complex voice and data converged networks that general IT services firms.

For most clients, TBI has found that it is more advantageous to “carve-out” network services from the overall outsourcing processes and source these specialized services independently.

TBI’s Net Sourcing practice was established to support this shift and over the last five years has supported a wide range of enterprise clients in the design, procurement, implementation and operation of global voice, data and converged networks.

The Net Sourcing Process

TBI has conducted hundreds of business process and information technology sourcing evaluations and negotiations for our customers and has significant experience in every step of the procurement life cycle, from initial feasibility assessment to contracting, to service migration and oversight, and periodic contract renegotiation.

When negotiating network services agreements, end users have considerable leverage over their incumbent service providers to enable them to achieve lower rates and improved service levels. Clearly the incumbent is eager to renew the agreement, while competitors see an opportunity to capture new business. However, given the arcane and complex contracting environment and a lack of information about current market rates, many end users fail to capitalize on their advantage, and end up paying too much.

To address these challenges, TBI has developed a powerful network services procurement process, Net Sourcing, to ensure that clients achieve a favorable outcome. While every client’s needs and circumstances are different, this methodology forms the basis of TBI’s approach to every network project.

Baseline Analysis

Objective: determine cost-effective architecture and technologies, understand cost and performance drivers and establish a sourcing strategy.

Prior to beginning any procurement action, it is important to understand the current environment and future requirements.

This task addresses the following issues

What do we currently have?
- People, locations, applications, equipment, services, vendors, contractual commitments
- Current and projected future costs and usage
- Shortcomings (real / perceived) to be addressed
What do we want to achieve?
- Network requirements: functionality, capacity, service levels
- Management requirements: tools, processes and people to run network
- Commercial requirements: pricing, contractual terms
How achievable is this?
- Traffic engineering, link sizing and topology optimization
- Selection of appropriate network technologies
- Service availability and pricing
- What is the most appropriate sourcing strategy?
- Asset ownership with varying degrees of out-tasking
- Best of breed service providers, by services (transport and CPE supply / support) and / or region etc., with internally managed integration and management
- General contractor, single source solution with minimal internal resource requirement

TBI has structured data collection templates, guides and questionnaires to help speed and guide data collection and assist in formatting and summarizing data for analysis and presentation.

Specification and RFP Development:

Task Objective

formalize requirements and obtain high quality proposals from credible vendors

The Request for Proposal is the formal mechanism to communicate its requirements to vendors. It is the first major step in a formal structured process designed to solicit meaningful responses from vendors. Time spent in careful construction of an RFP can mean the difference between receiving responses which enable rapid negotiation, and responses which are difficult to understand and compare and time consuming to negotiate.

In developing an RFP, TBI uses a standardized methodology developed over several years. It is based upon the experience of writing, responding to and evaluating multiple network sourcing actions. It produces superior results and rapid, cost-effective implementations.

Vendor response evaluation and selection:

Task Objective

select best proposals for negotiation and due diligence

No matter how carefully an RFP is structured, a rigorous technical and financial analysis of the vendor responses is necessary because no vendor follows RFP formats exactly nor does each vendor offer identical services and features.

TBI has developed a standardized methodology for evaluating vendor responses to RFPs that is designed to ensure as much objectivity as possible. Not only does this generally deliver better results but the process is easily understood, so that it is also seen to be objective.

There are four major objectives to such an analysis:

Ensure that each proposal is complete and self-consistent. Experience suggests that each vendor will have omissions and errors in its proposal and will present information in unique formats.
Evaluate the appropriateness, “intelligence,” and comprehensiveness of each vendor’s proposed solution, and identify any potential problems in complying with the technical and service requirements.
Ensure that vendor proposals conform to technical and regulatory practice in the locations where they are offering service.
Compare each proposal in terms of individual pricing components. Such a comparison should calculate one-time and monthly costs of each proposal over the term of the proposed agreement.

TBI delivers a summary of vendor bids and shortlist recommendations as a “Vendor Evaluation and Analysis Report”. In developing this report, TBI uses a reliable and objective response scoring methodology developed in-house over several years. It provides a quantitative, structured assessment based on RFP response compliance and pricing matrices.

Service contract Negotiation

Task Objective

secure competitive agreement with most favorable vendor(s)

TBI will support detailed network negotiations with the shortlisted vendors. TBI provides expert advice to support throughout the negotiation process providing:

Comment and guidance in developing negotiation strategies
Development of the contract draft to be used as the basis for negotiations
Assistance during the negotiations with analysis, pricing expertise, service level guidance and contract language
Contract review to ensure that all business requirements are addressed in the final contract
In a typical negotiation, TBI proposes the following milestones to keep the process on track:
- Issue written questions and clarifications to vendor(s)
- Explain negotiation process to vendor(s)
- Agree content of contract and schedules
- Issue request for Best and Final Offer (BAFO)
- Evaluate BAFOs
- Issue written questions and clarifications to vendor(s)
- Evaluate vendor responses
- Complete due-diligence on network design and management
- Modify draft contracts
- Final evaluations
- Select Winning Vendor(s)