Evaluation, Selection and Monitoring of Service Providers - A Guide for Investors and Investment Managers
Thomas Murray offers investors and investment managers proven process methodologies necessary to successfully evaluate suppliers and demonstrate to management and clients the robustness of the strategic service provider selection and monitoring process.
Phase 1 - Assessment
Understanding current and future client requirements and comparing those with current service provision, as well as best market practice. This will allow institutional investors and investment managers to select a service provider that meets their requirements. Where suppliers have already been appointed the result should be a recommendation to either refine existing arrangements or go to a competitive bid process.
Phase 2 - Evaluation
Thomas Murray uses a structured and comprehensive on-line Request for Proposal (RFP) tailored to the specific needs of the client, and provides a list of potential service providers and evaluates the responses.
Thomas Murray has developed complex structured methodologies to analyse provider responses, resulting in the delivery of an analysis of each provider. This can then support the selection of a short list of providers and a potential preferred service provider. On short-listed service providers, Thomas Murray would usually conduct a full due diligence including one to two days on-site visit. This step focuses on ensuring that the service levels offered in the RFP process can actually be provided. Scope of the due diligence visit includes credentials, operations, systems and reporting.
Phase 3 - Appointment
The next stage is the detailed negotiation and agreement of both the service levels and legal terms of the new relationship or adjustments to the existing arrangements. It is imperative that this is concluded before a final decision is announced. A lack of clarity and insufficient level of detail in service agreements can negate much of the value of the work undertaken in earlier stages.
Phase 4 - Custodian Monitoring
After establishing a detailed service level agreement (SLA), the challenge is then to monitor actual performance against what was committed and expected. It is also important to have the tools to be able to identify what is causing problems and thus be able to focus on finding ways of resolving them. Thomas Murray offers Custodian Monitoring to provide an on-going objective qualitative and quantitative assessment of the chosen service provider's performance.
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