Offshore Services Support & Maintenance Category Procurement Intelligence Report

A changing ecosystem within the Support market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Offshore Services Support & Maintenance. The cut-throat competition in the category is compelling suppliers to go aggressive on their pricing structure and increase their spend on sales and marketing activities. As a result, most suppliers are feeling a pressure on their margins and trying to offer higher margin value added services to have a better control on their profitability.

The supply market has undergone several structural changes including introduction of several new vendors every year, M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers that offer a solution with better fitment or a wider range of offerings in .

Buyers are showing an inclination to onboard suppliers whose offerings span beyond Offshore Services Support & Maintenance. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Offshore Services Support & Maintenance category procurement. The report offers a succinct analysis of Offshore Services Support & Maintenance procurement best practices.

For example, Investing in benchmarking studies not only helps category managers to improve their knowledge about market pricing or billing rates but also in negotiating with suppliers. In fact, this holds true for all technology procurement sub-categories.

Developing a strong understanding of the potential vulnerabilities of service providers can help buyers limit their potential losses and also gives the bargaining power to demand services from more robust measures in the SLA.

Buyers must clearly define clauses pertaining to the ownership of subcontracting services that are not a part of preferred suppliers' portfolios. Subcontractors should be bound by the same terms and conditions as the main contractor to ensure consistency in quality and manage any adverse event such as data breach.

Offshore Services Support & Maintenance procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Offshore Services Support & Maintenance procurement. Some examples include: