Managing Professional Services in the Financial sector

Wednesday, November 28, 2018

Fifteen CASME delegates met recently at Standard Chartered’s London Headquarters to discuss the management of the professional services category within the financial services sector.  

The general consensus was that Procurement adds the greatest value when negotiating contractual clauses that are associated with risk, knowledge transfer, future proofing and intellectual property.  This is most effective when professional services are sourced alongside IT contracts.

Stakeholders are more likely to be convinced of obtaining support from Procurement if it resolves a current issue, or internally talks about the solutions it successfully applied in the past when a professional services arrangement went wrong. 

A popular approach to supporting the category is to establish a preferred supplier list (PSL), and within that list to negotiate maximum day rates with preferred suppliers.  When there is a demand for work, Procurement should focus on developing a detailed statement of work (SOW) with the stakeholders, to ensure the requirements are accurate for a fixed target price, before tendering the work within the PSL.  Delegates agreed that the challenge of identifying suitable niche suppliers beyond the Big Four is almost as difficult as gaining the stakeholders’ acceptance to use them.

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