In regard of IT procurement, the biggest challenges are rising complexity, lack of transparency and high pressure on time. The main objective go way beyond procurement and allocation of services and products. An effective procurement process along the value added chain (supply chain management) is aimed.

 

Solid decision basis through evaluation
With the Integrated Methodology Driven Estimation (IME), Cost Xpert developed an intelligent solution for evaluation even the most complex applications. As strategic and operative planning and controlling instrument our expertise supports economic procurement management already at the proposal phase or prior to budget approval. A primary objective is the creation of a solid and transparent basis supporting negotiation and decision for any kind of IT project. The improvement of the estimation accuracy and the shortening of the time needed for the evaluation is critical for the development of competitive advantages.

 

Transparency about real equivalent value/target cost
Systematic application of methods allows the determination of real equivalent value//target cost including complete transparency abut all relevant factors within shortest time. The objective traceability at any time in project supported by possibilities of simulation of different scenarios and comprehensive analyses makes the saving potentials viewable along the value added chain. This forms a transparent basis for near-shore and/or off-shore decisions and supports lift and shift strategies. Furthermore, the determination of break-even-point allows secure make-or-buy decisions. Thereby, our innovative method supports effective strategically oriented cost management for the economic optimization of the value added chain and strengthen the level of trust between vendors and contractors.

 

The achieved transparency secures the objective comparison of proposals and forms the basis for argumentation-supported negotiations and solid decisions, even in business relations with monopolists. This replies the following questions:

•    Which contractor will serve you best?
•    How reliable is the contractor/supplier and the proposal in terms of cost and delivery time?
•    What are the saving opportunities?
•    Which quality aspects have to be kept?
•    What are the risk and what is their potential impact?
•    Which arguments best support one’s negotiation position?
•    How you can control and evaluate suppliers systematically?

 

The significant shortening of proposal phase while increased estimation accuracy and analyses to time-cost-trade off enables an earlier market entry (time to market) or entrance in new markets.

Competitive advantages improved through shortening of evaluation/bid phase.