Traditional input-based procurement for professional services has focused on the inputs needed to complete a project, such as the number of hours or the specific tasks to be completed. While this approach can be effective in some cases, it doesn’t always align with the desired outcomes.
Additionally, it can create an adversarial relationship between the client and service provider, as the focus is on meeting specific input requirements rather than working collaboratively towards a shared goal.
On the other hand, outcomes-based procurement focuses on the desired end result of the project, rather than the inputs required to achieve it. Service providers are incentivized to work collaboratively with the client to deliver the desired outcomes. This leads to more innovative and efficient solutions that benefits all stakeholders. Download the report
Key benefits of outcomes-based procurement:
Lower Costs
By focusing on outcomes rather than inputs, service providers are incentivised to find more efficient ways to achieve the desired results. This often results in cost savings for the client, as the service provider is more invested in finding the most effective solution rather than just meeting input requirements.
Improved Quality
When service providers are focused on meeting specific input requirements, they may overlook other important factors that could impact the quality of the final product. By focusing on outcomes, service providers are more likely to take a holistic view of the project and identify potential issues before they arise.
Increased Innovation
Outcomes-based procurement encourages service providers to think outside the box and find new and innovative solutions to meet the desired outcomes. This can lead to more creative and effective solutions that may not have been considered under traditional input-based procurement.
Better Collaboration
By aligning the incentives of the client and service provider, outcomes-based procurement can lead to a more collaborative relationship. Both parties are working towards the same goal and are invested in finding the best solution to achieve it.
How can we help you?
Outcomes-based procurement is a more effective approach to procuring specialist professional services.
By focusing on the desired outcomes, rather than just the inputs required to achieve them, clients can enjoy lower costs, improved quality, increased innovation, and better collaboration with their service providers.
So, why continue with the same old input-based procurement process when you can achieve better results with outcomes-based procurement?
