Global media entertainment company
Summary
In Jun 08 this company signed an Agreement for the provision of F&A services. The Agreement broadly covers financial accounting and reporting, Accounts Payable and Accounts Receivable for operations around the world. Transition commenced during 2008, with services being delivered from 5 regional centres: Delhi, Bucharest, Dalian, Buenos Aries and Curitiba. Alsbridge reviewed the contract and made recommendations for improvement including a potential cost saving of £11m
Objectives
Alsbridge was asked to do a review of the Master Service Agreement by using the Alsbridge Contract Evaluation Tool and provide a report with respective findings, conclusions and recommendations.
Activities
- Assessment of how the key terms compare to best practice
- Assessment of favourability and sustainability of the agreement / relationship
- Comparison of service charges to current market rates / charges on similar agreements using market benchmarks
- Development of a report with findings, conclusions and recommendations
Results
As a consequence of Alsbridge’s involvement, the client gained assurance that the deal was supplier favorable. We identified a number of areas (pricing, BAU operations, process documentation, governance and employees) which were under scoring when compared with industry best practices. Using Alsbridge business case tool we identified potential savings of £5m - £11m if contract charges were re-negotiated within benchmark range for similar deals.
