IT Infrastructure & BPO
When selling an IT transformation, infrastructure/hosting or business process outsourcing (BPO) deal, underpinned by a mixture of project-based labor and technology (hardware/software), it is essential to fully understand the cost drivers to best price complex transformation and long-term multi-year BPO deals with the right blend of risk protection, incentive/penalty clauses and outcome based fees. Clients are increasingly rewarding business outcomes rather than effort input and negotiating accordingly, resulting in the need for more fixed price and benefits based pricing models and less full-time equivalent or hourly/monthly based proposals. This drives up risk and reward, making estimating accuracy all the more important. Twenty5 allows you to model both your transformation or BPO program resources and the pricing conditions and clauses at the same time, giving you an accurate picture of your proposal's P&L over time, including cashflow, EBITDA vs. P&L and strategic investments, all from our central database.
Problem
The need to move from input to output based pricing, combining legacy full-time-equivalent based pricing models and productivity or cost of living adjustments with firm fixed price or even benefits based pricing, means that estimating accuracy and understanding cost drivers is more critical than ever. At the same time the ever-accelerating pace of doing business means you have less time to do this analysis, and bids have to be delivered faster and more collaboratively than ever before, using remote teams.
Solution
Project Knowledge Base
Mine existing proposal and project data from your SAP ERP, define best practice templates, and set-up new proposals faster, directly from your CRM based on prior knowledge and performance history.
Optimize Billing Rates
Manage cost, price and inter-company rates across all your rate-cards, service offerings and client MSAs in our tool, integrated with SAP S/4 activity type costs and pricing conditions. Optimize billing rates based on historical win/loss ratios, resource seniority/skills/location, service-line and client attributes such as strategic value, size or sector.
Proactively Manage Uncertainty
Manage risks and opportunities which impact both cost and revenue from the proposal phase. As you engage with more fixed price or outcome based bids, understand risk and opportunity adjusted cost, price and margins at different confidence levels using Monte-Carlo.
All the Pricing Strategies
Price using T&M, cost-plus, fixed/incentive or outcome/benefits based strategies. Model pricing inputs and elements such as discounts, technology charges or service taxes, and calculate and track benefits and benefits-based fees from performance inputs.
Estimating Cockpit
Make planning simple and intuitive with our Excel-like resource planning interface, allowing you to plan by task, week or month, based on hours, days, FTE or calculating effort from questionnaire-based sizing inputs and machine learning.
Hardware & Software Estimating in the Same Tool
Seamlessly incorporate data center hosting, equipment rental, hardware and software into your proposals for more complete offerings. We support subscription, usage-based, cost-plus and budget (e.g. travel = 15% of onshore labor) costing and pricing scenarios.
Manage Global Bids
Support proposals across onshore/offshore teams with our multi-currency, multi-country, multi-entity, multi-calendar and multi-language tool, with collaboration and workflow built-in, all from one central database.
Contract & Project Set-Up in SAP
At contract award, seamlessly convert Twenty5's proposal into an SAP contract, billing plan, project, WBS labor/material resource plan, and cost/revenue by fiscal period, for execution and actual cost collection in SAP, retaining your estimated cost and revenue baseline for future comparison.
Benefits By Role
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Deliver proposals faster
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Flexible pricing options - fixed, T&M, outcome based or hybrid
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Co-ordinate global bid teams
