Competition in consultancy procurement: A win for quality and cost-effectiveness

How to best procure consultancy services is an important part of organisations' strategic work with their competence supply. A wish that is often highlighted by management is to increase competition for new call-offs and reduce the proportion of name given consultants. But what makes competitive tendering so effective, and what benefits can it provide?

Quality through freedom of choice

One of the biggest advantages of competitive tendering is that it creates the opportunity for the client to compare offers from different consultancy firms. By inviting several actors to submit quotations, organisations can examine factors such as competence, previous experience and price of the consultant. This leads to a higher quality of the services that are ultimately hired.

Cost-effectiveness

Another strong argument is cost-effectiveness. When several actors compete for an assignment, prices are pushed down, which can ultimately lead to significant savings. This is particularly important in the public sector, where taxpayers' money is used and transparency is crucial.

The study, "Transition to a Competitive Consultant Selection Method", shows that the transition from namegiven consultants to competitive consultant call-off processes resulted in significant cost reductions and improved quality. The new process reduced administrative costs and created incentives for consultants to deliver high-quality and innovative solutions.

Transparency and fairness

Competitive bidding also promotes fairness and transparency in the procurement process. Through clear criteria and an open process, organizations can reduce the risk of arbitrariness and prevent nepotism. This is crucial for creating trust with both internal and external stakeholders.

Risks and challenges

Despite the many benefits, it is important to be aware of certain challenges. An excessive focus on price can lead to quality being put on hold, which can be costly in the long run. Therefore, it is important to balance the lowest bid price with other criteria in the procurement process.

Conclusion

Increasing competition in consultancy procurement is a way of working that not only drives up quality but also reduces costs and ensures a fair and transparent process. According to the study, such an approach can lead to long-term savings and increased efficiency. By creating a healthy competitive environment, organizations can ensure that they get the best value for money and achieve their strategic goals with the help of the best consultants on the market.