With the ten-year outsourcing contract for the administration of the TV Licensing operation up for renewal, BBC embarked on what would be one of the UK's largest ever outsourcing procurement exercises.
£220 million in cost savings anticipated over eight years
Substantive financial gain to the BBC resulting from enhanced revenues and reduced cost
One of the UK’s largest procurement exercises delivered in less than a year
360 degree feedback
We agreed with the client that to achieve these objectives, they would need to undertake a thorough review of the supplier market and what it could deliver. It would mean negotiating openly with potential providers to build a solution in partnership.
The BBC was looking for a lot more than a keen price. It was looking for a partner that had multi-channel delivery capability, a demonstrable plan to evolve and innovate that capability, plus an appetite for contractual risk and reward sharing. The incumbent plus several other candidates were invited to tender.
Evaluating the proposals would require a deep understanding of the current customer management environment, as well as TV Licensing’s business and operational requirements. Having worked with the BBC in the past to help analyse, understand and improve the quality of the customer experience delivered to license payers, we knew the business well and could hit the ground running.
To facilitate comparison between proposals, we defined a common structure that bidders were asked to adhere to. We evaluated each when it came in, providing feedback to each bidder and clarity to the procurement team. Because the process was an iterative one, with bidders asked to refine their proposals as the process evolved, that meant several review stages and over 600 hours of dialogue with bidders.
TV Licensing relied on us to validate each bidder’s costs and provide assurance that they were not compromising their ability to deliver in order to achieve what they felt to be a competitive price. Thanks to our meticulous understanding of pricing models and procurement strategy, discussions about cost were concluded early in the process, leaving time to focus on the strategic elements of the contract.
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