How to choose the right service provider for your consolidation journey
Efficient, streamlined and high-performing – these are the hallmarks of a competitive organisation. Corporate services consolidation is a critical milestone on the road to business excellence, but selecting the right service provider can be daunting. The key to success is taking a systematic approach, balancing long-term vision with operational stability. To help you choose the right partner for your consolidation journey, we’ve compiled a list of frequently asked questions that cover everything from preparing the groundwork to navigating common challenges.
1. Which model is right for my business?
Selecting the right corporate services model is a crucial first step – the choice depends on your company’s size, complexity and strategic priorities. Options include:
- Fully in-house: offers high levels of control, visibility and security but is better suited to larger locations such as headquarters or regional offices. Smaller markets often lack the budget required for dedicated staff
- Hybrid (in-house and outsourced): combines in-house teams in larger markets with outsourcing in smaller markets and is a good way to tap into local expertise in small markets
- Managed service (aggregator outsourced): a contractor manages global services and leverages third-party providers in smaller markets where it does not have coverage. This approach can lead to reduced visibility and blur the lines of responsibility
- Managed service (partner): a single outsourcing provider takes full responsibility for service delivery across all countries where the organisation operates, providing one point of contact, on-the-ground support and consistent service
2. How do I prepare for the vendor consolidation journey?
Once you’ve selected a suitable model, you’ll need to build a business case that details the benefits, costs and risks of the consolidation effort. Identify areas for improvement in your business as well as opportunities to optimise costs. After you’ve secured leadership buy-in, appoint a cross-functional team to assist with the vetting process. Next, you’ll need to map your existing vendors to understand gaps and opportunities. Finally, research global service providers to find the best partner to support your consolidation journey.
3. What capabilities should I look for in a service provider?
Comprehensive service coverage, global reach and local expertise are the key characteristics of an effective service provider. The vendor will need to offer the full spectrum of services you require from payroll and HR admin to accounting, tax and legal compliance. They need to be able to support your operations on the ground, in multiple languages, to ensure compliance with local requirements. The right partner will be able to scale their services as your company grows or enters new markets. Look for a service provider who’s flexible, adaptable and able to support your short-term priorities and long-term growth.
4. What other factors should I consider when choosing a service provider?
Other important considerations include:
Data security and compliance – ensure the vendor has appropriate certifications, such as ISO27001 or GDPR compliance. Ask about their data handling policies, cybersecurity protocols and disaster recovery plans.
Technology and innovation – leading-edge service providers use automation, AI and analytics to improve efficiency. They also employ cloud-based platforms for real-time access and collaboration. A commitment to continuous improvement indicates a willingness to adapt and evolve.
Onboarding plan and communication – your prospective service provider should be able to provide a structured onboarding plan designed to minimise disruption. The vendor should also appoint a dedicated account manager or team and establish clear escalation channels.
Performance metrics and SLAs – clearly defined SLAs, KPIs for turnaround time, accuracy and customer satisfaction, and regular reporting help drive accountability and track performance.
Cultural fit and references – a strong partnership hinges on values alignment; choose a service provider that resonates with your company’s culture and is a synergistic fit. Ask for case studies and testimonials to understand the vendor’s track record and customer satisfaction levels.
5. What about cost considerations?
A transparent pricing model eliminates hidden costs and builds trust and loyalty. The provider should deliver cost effectiveness without compromising service quality. Conducting an ROI analysis will help you crystallise financial benefits, giving you a clear picture of the value the provider will bring to your business.
6. I’ve selected a service provider; what happens next?
Once you’ve selected a service provider, the next step is to create a transition plan to smoothly exit existing vendors. You’ll also need to provide robust training and support to help your team master the new processes and systems. Additionally, you’ll need to create KPIs to track performance and measure the effectiveness of the partnership.
7. What are the potential pitfalls to look out for during the consolidation process?
Your consolidation initiative needs to be carefully executed to avoid operational disruption. A detailed transition plan and clear lines of communication can help maintain business continuity. Bottom-up decision-making is another pitfall; while country leaders can offer insights and input, the decision to consolidate rests with executive leadership. Centralisation projects that are triggered from the bottom up often fail as they lack the impetus to embed lasting change.
Ready to begin your consolidation journey?
Take the first step to streamlined, optimised operations – visit our corporate services consolidation page to explore our services and see how our clients, including Ingersoll Rand and Toshiba, maximised performance with centralised solutions.
