Labor Relation Consulting Services Market Procurement Intelligence Report

A changing ecosystem within the Consultancy market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Labor Relation Consulting Services. Most clients now prefer splitting a single project among different vendors as it enables them to allocate parts of a project to specialized professional firms and keep the supplier base wide enough. Some clients adopt this strategy to understand the capability and performance of individual supplier and then pick one or a smaller set of suppliers for future contract opportunities.

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. Labor Relation Consulting Services vendors are adopting starkly different business models and cost structures in an effort to address both the markets.

There are only a handful of \"Tier 1\" vendors in the Labor Relation Consulting Services market and they have traditionally enjoyed a premium in their pricing. However, Tier 2 suppliers are giving them a tough competition now as they can provide similar services at a lower cost. Many tier 2 suppliers achieve this parity by finding right talent at a relatively lower cost and maintaining lean operations without any frills.

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 Labor Relation Consulting Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Investing in benchmarking studies help category managers improve their knowledge on market pricing or billing rates of consultants by job role and function. This also allows them to save costs as well as negotiate better with service providers.

Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and performance requirements.

Buyers should engage with service providers through a performance-based pricing model wherein consultants should be paid based on the quality of services delivered by them.

Labor Relation Consulting Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Labor Relation Consulting Services procurement. Some examples include: