How a Services Procurement programme resulted in £3M cost savings

How a Services Procurement programme resulted in £3M cost savings


Achieving cost efficiency through strategic SOW procurement

Our client, a global financial services company, was facing challenges with misclassified SOW projects in the UK. Initially unaware that over half of their 90 SOW projects were misclassified, the company risked regional compliance issues and financial consequences. As an experienced procurement service provider, Pontoon proposed a comprehensive solution that resulted in €488,000 in cost avoidance in the first year and an additional €72,000 in the subsequent year.

The challenge

Navigating misclassification risk and inefficiencies

The client, a global financial services firm, grappled with misclassified SOW projects in the UK, leading to inconsistent reporting, compliance issues, and potential co-employment risk. With 90 SOWs lacking specific parameters, time and materials metrics, and deliverables, the challenge was to bring structure, accountability, and compliance to the programme.

How we helped

Comprehensive procurement solutions for SOW transformation

Evaluation: Conducting a thorough audit of the existing contractor Statement of Work, Pontoon held 1:1 sessions with 78 managers to assess individual scopes, perform gap analyses, and determine the nature of each agreement. Compliance and co-employment risks were also scrutinised.

Education and alignment: Recognising a knowledge gap among stakeholders, Pontoon conducted a roadshow, offering ten training sessions to educate 120 hiring managers on SOW capabilities and deliverables.

Vendor partnership: Collaborating extensively with vendors, Pontoon migrated SOWs away from staff augmentation, re-engineering contracts for fixed-price models based on deliverables.

Re-design: Addressing issues with existing SOW structures, Pontoon developed a standard framework and output-tracking method for future SOWs, simplifying vendor evaluation for hiring managers.

Change management: Implementing a change management system, Pontoon centralised change requests, streamlining the process and providing a more comprehensive view of SOW programme data.


Structured efficiency, enhanced accountability, and £3M cost savings

The re-engineering of 50 SOWs for compliance, clear project roadmaps, and an emphasis on tendering new projects resulted in over £3M in cost savings for our client.

Vendors are now accountable for resources and project deliverables, enhancing vendor consultant engagement and minimising tenure liability. Trust between stakeholders and Pontoon is at an all-time high, showcasing the successful revamp of the services procurement programme.

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Services Procurement