In simple terms, professional services procurement is the sourcing and buying of services for businesses from professionals/companies in advisory and service industries such as architecture, law, accountancy/financial advisory and other types of consultancy. These purchased services are usually SOW-based (where project-specific tasks, deliverables and timeframes are presented to the client) and encompass the transfer of knowledge or service from supplier to client.
Many businesses will use professional services to support, manage, advise and grow their businesses or perform tertiary roles that cannot be completed in-house for various reasons.
According to the latest data by Trading Economics, the entire services sector equates to 79% of the UK’s GDP, with professional, scientific, technology, administrative and support making up 12% of the GDP and financial and insurance services 8%.
Understandably, this means that ‘professional services’ can equate to a large figure in corporate expenditure because of its broad spectrum. Yet, because of their non-tangible nature, the value to the business and the cost-effectiveness of a professional service can often be difficult to evaluate and review.
Many businesses will use external professional service firms to support or safeguard major components of their strategy or operations. And with the use of professional services on the rise, the way you establish and develop your working relationship with your supplier will determine the success of their works toward your business growth.
For many companies needing the help of professional services, determining which supplier to opt for can be a complicated matter, particularly when the specifications for quality/need can be somewhat subjective depending on the current situation and goals of your business, as well as the contractual agreements that are negotiated with the supplier. With the current challenging business climate, the importance of gaining the best value from every supplier relationship has never been so paramount–especially when they contribute to your overall strategy.
So, if you are going to get the best out of your suppliers, you are going to need the best evaluation of the marketplace.
Here at Expense Reduction Analysts, we understand the challenges faced by businesses who are under enormous pressure to grow in spite of uncertain times. Our experts, specialising in a range of sectors, have years of experience in their respective fields and are therefore some of the most qualified individuals to review your cases. They work to improve your current supplier-relationships to impart enhanced value for cost or provide you with a list of better alternatives that are more financially and operationally suitable to your business. Utilising a holistic approach to our evaluations, we analyse every part of your business to pinpoint areas that could be benefitted from alternative supply solutions and streamlined operations, the result of which is improved overall costs.
With invested time, expertise and networks, our specialists work with you to offer a procurement capability review that gives a comprehensive insight into how your professional service purchasing measures up against best practice, while our regular reviews ensure you always have the optimum structure in place.
