This article for buying professional services is an overview providing a basic outline
When buyers or procurement managers say part of their job is buying professional services what do they actually mean? Professional services can cover many areas, strictly speaking being a professional is someone who has the accreditation, training and work experience for a particular field of expertise. A wider view of professional services is any offering requiring specialist services such as PR, advertising, legal, IT consultancy or Management Consultancy. The output being bought is knowledge.
Typically when assessing the value of consultancy services we score quality and price separately. Let’s start with quality, where do you sit in the spectrum of understanding what your internal client is buying? For those who have no idea about how to influence the quality perhaps it’s easier to stick to transactional contributions like formatting the ITT documents, sending the ITT via the e procurement portal and advising on procurement compliance. This may be one element of your role but you need to ask where is the real value being added? Some Procurement managers may advise against talking to the market before a tender is issued through fear of the client selecting a favorite supplier who they like and decide to base their specification the supplier’s solution even before formal competition has started. A good procurement professional should add value and have confidence in speaking to the market pre- formal procurement.
Buying professional services can be complex, work with suppliers in the market place to discuss the brief in detail, don’t be afraid to ask for pre-market engagement and listen to their feedback, if useful incorporate this into the specification. Avoid bias by opening up the conversation to the industry and hold a suppler day for fairness and transparency.
Focusing on the price element this may comprise of hourly or daily rate and perhaps utilisation. It’s easier to keep this relatively simple because driving down price to the granular detail detracts from the bigger prize, the solution the professional services will provide which should have a ROI that exceeds a few percent extra savings on price. This isn’t to say that we shouldn’t scrutinise price at all, it should be done proportionately.
Source below Gov. UK
Professional services
Professional services seeks to fill skills gaps where the service requirement includes the delivery or implementation, and is defined as the provision of an operational service which is not purely advisory consultancy.
These two categories differ from the Temporary Staff, which is not in scope of the Consultancy and Professional Services control, and is defined as the provision of workers to cover ‘business-as-usual’ or ‘service delivery’ activities within an organisation. “Temporary Staff” is also often referred to as “Contingent Labour” or “Agency Workers”. Further information on the definitions can be found here:
Consultancy can be distinguished from Professional Services
Consultancy
Consultancy seeks to fill a knowledge gap. It is defined as the provision to management of objective advice relating to strategy, structure, management or operations of an organisation. Such advice will be provided outside the ‘business-as-usual’ environment when in-house skills are not available and will be time-limited. Consultancy often includes the identification of options with recommendations, or assistance with the implementation of solutions but typically not the delivery of business as usual activity.
You might also like information on management consultancy grade descriptions or read the HRB article for an alternative view
Typical Questions when Buying Professional Services
When developing a tender or request for proposal (RFP) for professional services, it is important to ask specific questions that will help you evaluate the capabilities and suitability of potential service providers. Here are some sample tender questions you can consider asking:
- Company Background and Experience: a. Provide an overview of your company, including its history, size, and key personnel. b. What is your experience in providing professional services similar to the ones requested? c. Can you provide references or case studies of similar projects you have successfully completed?
- Expertise and Qualifications: a. What specific qualifications, certifications, or licenses do your professionals possess? b. Describe the expertise and skill sets of the team members who will be assigned to this project. c. How do you ensure that your staff stays updated on industry trends and best practices?
- Approach and Methodology: a. Describe your approach and methodology for delivering the required professional services. b. How will you tailor your services to meet our organization’s specific needs and objectives? c. What tools, technologies, or resources will you utilize to enhance the delivery of your services?
- Project Management: a. How will you manage and allocate resources to ensure timely and efficient project execution? b. What project management methodologies do you follow to track progress and manage risks? c. How do you handle changes in scope, deadlines, or other project variables?
- Pricing and Cost Structure: a. Provide a detailed breakdown of your pricing structure for the professional services requested. b. Are there any additional costs or expenses that we should be aware of? c. How do you handle changes in pricing during the project, if necessary?
- Quality Assurance and Performance Metrics: a. What quality assurance processes do you have in place to ensure the deliverables meet our standards? b. How do you measure and track performance throughout the engagement? c. Can you provide examples of how you have resolved issues or addressed client concerns in the past?
- Confidentiality and Data Security: a. How do you ensure the confidentiality and security of our sensitive information? b. What measures do you have in place to protect against data breaches or unauthorized access? c. Are your professionals bound by confidentiality agreements?
- Contract Terms and Conditions: a. What are your standard contract terms and conditions for professional service engagements? b. Are there any specific legal or regulatory requirements that need to be considered? c. What are the termination clauses and procedures outlined in your contracts?
Remember to customize these questions based on your organization’s specific needs and requirements. You can also include additional questions that are relevant to the particular professional services you are seeking.
Buying Consultancy Services
When buying consultancy services, the tender questions you ask should focus on evaluating the capabilities, expertise, and approach of potential consultants. Here are some specific tender questions to consider when purchasing consultancy services:
- Consultant Experience and Qualifications: a. Provide an overview of your consultancy firm, including its history, size, and key personnel. b. What is your experience in providing consultancy services in the specific area or industry relevant to our organization? c. Can you provide examples of successful projects you have completed that are similar to our requirements?
- Consultant Expertise: a. Describe the specific expertise and skill sets of the consultants who will be assigned to our project. b. What qualifications, certifications, or specialized knowledge do your consultants possess? c. How do you ensure that your consultants stay updated on industry trends and best practices?
- Approach and Methodology: a. Explain your approach and methodology for providing consultancy services. b. How will you tailor your services to address our organization’s specific needs and objectives? c. What tools, frameworks, or methodologies do you use to support your consultancy work?
- Project Management and Timeline: a. How do you manage and allocate resources to ensure timely and efficient project delivery? b. What project management processes and tools do you employ to track progress and manage risks? c. Can you provide a proposed timeline for the consultancy engagement, including key milestones and deliverables?
- Consulting Team Composition: a. Who will be the primary consultants working on our project, and what are their roles and responsibilities? b. Will there be any subcontractors or external experts involved in the consultancy engagement? c. What is the level of availability and accessibility of the consulting team during the project duration?
- Pricing and Cost Structure: a. Provide a breakdown of your pricing structure for the consultancy services, including any hourly rates, fixed fees, or other cost components. b. Are there any additional costs or expenses that we should be aware of? c. How do you handle changes in pricing or scope during the consultancy engagement?
- Deliverables and Reporting: a. What specific deliverables can we expect from the consultancy engagement? b. How do you ensure the quality and accuracy of your deliverables? c. Can you provide examples of reporting formats or templates you typically use to communicate progress and findings?
- Confidentiality and Data Security: a. How do you ensure the confidentiality and security of our sensitive information? b. What measures do you have in place to protect against data breaches or unauthorized access? c. Are your consultants bound by confidentiality agreements?
- Client References: a. Can you provide references from past clients who have engaged your consultancy services? b. Are there any testimonials or case studies that highlight the value and impact of your consultancy work?
- Contract Terms and Conditions: a. What are your standard contract terms and conditions for consultancy engagements? b. Are there any specific legal or regulatory requirements that need to be considered? c. What are the termination clauses and procedures outlined in your contracts?
Tailor these questions to suit your organization’s specific needs and industry requirements. You can also include additional questions relevant to the particular consultancy services you are seeking.