Future of Sourcing: suppliers are primary stakeholders too.

Many of the challenges that arise during statement of work (SOW) services procurement could be avoided by clarifying business needs, budgets and outcomes at the outset. It’s a careful equation that can only deliver the best results when all of the elements are properly defined, with clear expectations for the service provider.

“The simple truth is organizations that achieve best value when buying external services will be the ones who are clear on what they need, pay the right price from the right service provider and create the right environment for engagement success,” writes Paul Vincent, global head of services procurement for Randstad Sourceright.

He advises companies to accurately and honestly estimate the role of the service provider, beginning with the RFP. A good RFP will share the true scope of the project, as it currently stands, without exaggeration. It will also give providers ample lead time to deliver a proper proposal.

Vincent also encourages procurement to “be willing to pay ‘A-team’ players what they’re worth.” Today’s competitive market requires clear pricing structures that allow for the level of quality that buyers want. An insufficient budget will lead to compromises that impact service delivery.

Read more in the Future of Sourcing for insights on how you can ensure the best outcomes from your SOW procurement efforts. You can also take a deeper dive into SOW management here.