Case study: outsourcing or insourcing decision making
The trustee of a superannuation fund with over 800,000 members required advice and representation in the management of a tender to outsource administration services. The question was whether to renew with their existing provider or select from a list of alternate providers.
QMV was appointed to represent and advise the trustee in the management of a market scan and subsequent tender. The tender process identified six applicants offering well-suited and diverse market positions. Following successful completion of the RFP issue and analysis, QMV advised a short-list of three possible administration service providers. QMV successfully lead the negotiations and proposal amendments. The negotiation process resulted in substantial fee reduction while obtaining favourable service and support levels.
QMV made final recommendations to the trustee and facilitated presentations to the Trustee Board. Ultimately, the trustee elected to renew the arrangement with their existing provider with consideration to the improved service proposition, reduced fees, nil transition costs and lower risks.