Interactive Response Systems (IxRS) Category Procurement Intelligence Report

Science and Environmental Research market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Interactive Response Systems (IxRS) procurement and the cost they have to incur. New locations and vendors are emerging as cost effective suppliers of Interactive Response Systems (IxRS), offering an opportunity to widen the supplier base and gain further negotiation leverage with incumbent suppliers.

The market is rapidly showing signs of a great divide - at one extreme is a low-cost market with almost commoditized services and at the other end is the market for high cost specialized services. Interactive Response Systems (IxRS) vendors are adopting starkly different business models and cost structures to address both the markets.

Proliferation of supply pool in regions such as APAC is expected to intensify supply market competition. This will compel service providers to compete on price points to attract new buyers, which is expected to offset some of the increase in procurement cost arising out of increasing supplier OPEX.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Interactive Response Systems (IxRS). To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers should engage with service providers through a rate card model. Within the rate card model, Customers are provided with rate cards that contain pre-determined prices for various activities and resources required for the project. Price is fixed based on per resource hour for different job roles. This pricing model ensures that there is optimal utilization of supplier's resources.

It is crucial to develop measurable milestones that help monitor and benchmark the performance of service providers. In case of variations, buyers should discuss and find appropriate solutions in conjunction with the service provider, followed by the implementation of an effective strategy to avoid variations in the future. The performance of service providers can also be linked to a portion of their fee and can be paid upon rendering of services in a satisfactory manner. For instance, measuring performance based on adherence to budget and accuracy of data or information provided during research.

Buyers must clearly define clauses related to ownership of subcontracting services that are not part of their preferred partners' portfolios to ensure service consistency and control of sensitive data that are shared with subcontracted firms. The roles and responsibilities of subcontractors should be clearly defined by supplier to provide visibility on the quality of main service provider vs sub-contractors.

Interactive Response Systems (IxRS) procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Interactive Response Systems (IxRS) procurement. Some examples include: