Vested Outsourcing

Do you want more focus on the result than the road to it? Do you only want to pay for results and not for transactions? Do you want to compete better because your partnership is about value-added solutions instead of activities? Do you want a win-win relationship instead of a win-loss relationship? Do you want stakeholders to have ownership and focus to deliver results because of the jointly agreed desired outcome?  If so, Vested Outsourcing is something for your organization. 

The 5 Vested Outsourcing rules 

Vested Outsourcing has the following 5 rules:

  • 1. Focus on the outcomes, not on transactions

    The emphasis is on matching the need of the supplier on the customer's need: an efficient and cheap total solution. By the desired outcomes of both parties the supplier is paid on basis the extent to which he realizes the desired outcomes.

  • 2. Focus on what, not on how

    The outsourcing organization specifies what he wants and not how he want to realize this. He transfers this responsibility to the supplier as the supplier is better in his own work than the outsourcing organization. That is the reason why organizations outsource services.

  • 3. Agree clearly defined and measurable outcomes

    Both the outsourcing organization and the supplier must during the outsourcing process and during the negotiate contract negotiations jointly how they will measure the success of the relationship. By beforehand invest time in Defining measurable outcomes prevents that none of the organizations time or means spends on measuring the wrong things. Based on defined outcomes the supplier can offer a solutionat a fixed price, that meets the expected performance level. Move risks this from the outsourcing service to the supplier.

  • 4. Optimize price model rewards

    At the determine of the pricing model serves there account be geKeeping that risk and reward for both organizations in balance and that the agreement specifies that the supplier provides solutions and not just activities. This means that if the supplier delivers more value than expected, he must be paid for this.

  • 5. Management structure should provide insight, not just supervision

    It is not about managing the supplier but about managing the business with the supplier. This means that it there for the outsourcing organization is going that he iview has in what the supplier doest and the supplier does not must check if he is doing well.

Benefits of Vested Outsourcing 

Application of Vested Outsourcing has a large number of advantages. We have listed the biggest benefits for you: 

  • An environment in which continuous improvement is central. Partnerships and flexibility create better and innovative solutions. Suppliers no longer ask what they can do for you but ask what we can do together better. 
  • Lower costs and greater stability due to the "we" idea instead of the traditional idea in which only the own interests are important. 
  • Need for tendering reduces or disappears as a result of partnerships.   

Agreements between Vested Outsourcing and Best Value Procurement (BVP) are that both focus on the supplier's expertise, both thinking in terms of win-win and placing both value above price. There are, however, also differences. An important difference between Vested Outsourcing and BVP is that at Vested the relationship with the supplier is central, whereas BVP involves verifiable performance information on the basis of which outsourcing organizations select the supplier that achieves most value at the lowest price. You will find more information about BVP here. 

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