CASE STUDY:
CLIENT
U.S. health insurance organization  
SITUA­TION
For some market segments, the organization relies heavily on outsourced providers (BPOs) to deliver contact center services to providers and members. The internal team worked closely with the BPOs and yet was frustrated by the fluctuations in their own costs and in service levels delivered to members, which often didn’t align with corresponding budgets from the beginning of the fiscal year. With pending contract renegotiations for some providers looming, the team requested help understanding market best practices, and how to better manage the balance of service and costs to their providers and members.
OBJEC­TIVE
Analyze 20+ BPO contracts for total costs, terms and conditions, and opportunities to operate more effectively. Recommend an immediate negotiating strategy to stabilize performance and cost for BPOs with erratic performance in negotiations.
WHAT WE DID

    Reviewed 20+ contracts for terms and conditions parity and best practices
Created unit cost and market competitive point of view for each contract to enable assessment of what was important to renegotiate
 
Provided negotiation strategies to achieve best practice terms on key contracts 
Made recommendations for negotiating strategy with key vendors as well as operational changes the within the organization to improve partnerships with its BPOs and achieve the performance level sought 

  
OUT­COME
A review of contracts, spend data, and quarterly business review data generated a map of the overall landscape of where the contracts were consistent and inconsistent, and which terms could be structured more effectively. 
  