Sourcing programs can be extremely large investments, with huge potential for transformational value creation as well as significant potential risks, so it is important to receive independent advice on the most appropriate strategy and implementation.
As companies redefine their worldwide operating models and strengthen their core capabilities, they depend on a wide range of sourcing solutions to give them access to global talent, scale, and advanced services. Our dedicated team enables clients to deliver their services and operations in a scalable and cost-effective manner that fully captures the potential of global sourcing. We provide support at every stage, from defining global operating models to strategy design to successful implementation and value capture.
Our work falls into two streams:
- Sourcing strategy (e.g., global business services, IT and business outsourcing and offshoring)
- Sourcing delivery and execution (e.g., sourcing excellence, 360° benchmarking of IT, customer care, shared services, location architecture, and organization/change management)
The first step in realizing the full value potential of sourcing is to define the global operating model for your business support services (e.g., HR, legal, finance) as well as for business processes and IT, deciding whether capabilities should be built inhouse or outsourced, and onshore or near-/offshore. We help clients determine the best operating model for business support functions as well as cross-functional opportunities, drawing on our in-depth understanding of their unique capabilities, industry best practices, and detailed benchmarks specific to the relevant industry sector. We also help design the optimal governance structures, processes, and accountability models, which are critical for success. Based on our client experiences, a typical sourcing transformation can result in cost savings of 20–40+ percent as well as improved service levels, increased business responsiveness, and the ability to enter new emerging markets more quickly.
Sourcing delivery and execution excellence
Excellence in sourcing delivery and execution is a critical lever in driving savings of as much as 35 percent or more in select functions; in creating greater flexibility for businesses to scale up or down in response to changing market conditions; and in enabling companies to avail themselves of expert capabilities such as advanced analytics, not easily or economically developed internally.
Therefore, once a sourcing strategy has been defined, McKinsey supports clients in establishing their extended enterprises and making them a success. While remaining vendor and location neutral, we apply our extensive experience and knowledge of international service providers and government organizations to client-specific advice and support on setting up partnerships with strategic providers and fine-tuning operational and organizational efficiency. McKinsey brings to these tasks a comprehensive and detailed performance-metrics database (360° benchmarks) that covers more than 100 leading delivery centers across multiple locations and an analysis of best practices that have driven success for other leading companies. Utilizing this knowledge base, we are able to assist each client in determining the optimal geographical footprint to leverage global talent pools and manage risks.
Finally, as is necessary in any major business transformation, we invest heavily in helping clients achieve enterprise-wide buy-in for their new setup.