ValueNotes launches its proprietary vendor rating methodology for the LPO industry
The service provider landscape has become increasingly diverse - with differentiation becoming the norm, rather than the exception. Differences in offering, depth, maturity, scale, and strategy pose a challenge while trying to seek an understanding of the vendor landscape. For buyers of these services, this impedes the decision making process especially as it pertains to vendor selection or benchmarking.
-- The service provider landscape has become increasingly diverse - with differentiation becoming the norm, rather than the exception. Differences in offering, depth, maturity, scale, and strategy pose a challenge while trying to seek an understanding of the vendor landscape. For buyers of these services, this impedes the decision making process especially as it pertains to vendor selection or benchmarking.
ValueNotes has introduced a model that serves as a guide to understand vendor capabilities. According to Arun Jethmalani, Managing Director of ValueNotes, "With the proliferation of service providers, the selection and evaluation process has become a major challenge for buyers. The ValueNotes Sourcing Prism is an attempt to make the selection process easier. The Sourcing Prism's three vectors: service maturity, sustainability and strategic intent; also provide an indication of the likely long-term success of the service provider."
The ValueNotes Sourcing Prism represents each company on three parameters:
- Services Maturity refers to the service expertise that a company has built in its chosen industry. This is evaluated by assessing the depth of services offered by the provider, the industry experience and the relative position on the services value chain.
- Sustainability is measured by assessing the financial strength, company brand, scale, etc. In addition, risks from client concentration, diversity of client base, service focus and debt levels need to be assessed.
- Strategic Intent measures the strategic decision-making element in a company, both in theory as well as in execution.
The ValueNotes Sourcing Prism compares each company's overall score against two benchmarks:
- Industry Average - average rating across the industry for each parameter
- Industry World Class - the highest rating possible in the industry, represented by the outermost corners of the Sourcing Prism
Companies are classified into three groups:
- Pacesetters are defining the highest standards in the industry, for the respective parameters, reaching the outermost points of the 'Y' in the model.
- Contenders have a healthy combination of the parameters under study, and are challengers for the 'Pacesetters' industry group.
- Aspirants have the potential, but are currently under restraints.
ValueNotes Sourcing Prism: Legal Outsourcing
ValueNotes has analyzed 40 vendors in the LPO (Legal Process Outsourcing) segment. Using the ValueNotes Sourcing Prism, we have rated the companies in this segment.
- Pacesetters: Companies under this group, viz. CPA Global, Integreon and Pangea3, have extensive industry experience, matured service offerings and strong business models. These companies have moved up the value chain and have added a sizeable number of clients.
- Contenders: Companies grouped under 'Contenders' have been growing at rates higher than the industry average. They have relevant industry experience although they are still in the process of building end-to-end capabilities.
- Aspirants: 'Aspirants' are mostly companies that have been opportunistic in nature, with heavy dependencies on one-off projects.
The ValueNotes Sourcing Prism will aid in sourcing strategy and investment decision making.
Notes to Editor
About ValueNotes
ValueNotes is a leading provider of business intelligence and research, with expertise across industries, particularly in financial services, media, engineering, healthcare, IT and the outsourcing industry. We have built strong capabilities in the collection, interpretation and analysis of data - both qualitative and quantitative.
The ValueNotes Sourcing Practice is one of the largest information providers on the outsourcing industry. The Practice uses a comprehensive, analytical framework providing fresh insights into the fast emerging and yet, complex outsourcing space. We extensively track the space through regular analysis of news and events, continuous primary research and contact with the industry. Additional information is available at www.SourcingNotes.com
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