Outsourcing models and governance

May 16, 2014

At our May 14 TON program, Ole Hørsfeldt and Tue Goldshmeiding of Gorrissen Federspiel, brought the group through a session focused on aligning the interests of the vendor and the client via outcome oriented models. Central to the presentation was the evolution of models over successive generations of outsourcing with variations of partnerships, shared risk, gain-share, warranted savings models and prolongation models. The new generation of models that are focused on value for money are outcome oriented models where the primary focus is “how can this help my business?”, as opposed to output oriented models where the primary focus is “what does it cost to produce x?”

Members from Ferring, LEO and Xellia came with specific challenges related to governance. Ferring’s Jørgen Debois and Lisbet Vandvig discussed the challenges their organization has focusing top-level attention on vendor relationship-building. LEO’s Susanne Sforzini discussed the challenges of when precisely to pull procurement into the negotiation process. And Xellia Pharmaceuticals’, Luciana Schwambach, discussed the challenges of keeping vendors on track for deliveries. Our members contributed robustly to these discussions and provided Ferring, LEO and Xellia with valuable and actionable input, e.g. establishing a governance board, increasing frequency of meetings, locating process owners in the vendor’s market, engaging in more stakeholder communication, and clarifying mandates.
If you would like to hear more about TON, please contact Katie Gove at kg@trellis.dk.