30/03/2015
In recent decades there has been an increase of government transactions in which reciprocal procurement (Offset) is a condition for the order. A demand for a high percentage of direct reciprocal procurement as part of the deal is a challenging requirement, which exceeds the ordinary limits faced by the project team. On top of that, the demand also poses a necessity to transfer and manage work packages in different business cultures, with costs and operational difficulties derived from the geographical distance or time zones. Layers of difficulties may be added to this demand, sometimes requiring knowledge transfer to offset contractors, their synchronization in the process of the project at work, where its target is predetermined. The desire to find a main sub-contractor in the customer’s country to make the project efficient is not always an option, due to the requirement percentages of direct offset deals. Seemingly deliberate risk reduction action taken by distributing small work packages create risk by being small work packages executed by many authorities.
Proper distribution of work packages, proper selection of subcontractors, with a contractual system and a good working relationship, are a prerequisite for a successful reciprocal procurement. At the same time, addressing the administrative aspect is challenge in itself.
e2eS provides the client with years of experience of the team to manage multi-disciplinary projects in difficult business environments including reciprocal procurement. This increases the chances for transactions, including offset deals where it is mandatory.