Outcome-Based Security Services
Gearing towards an Outcome Based Contract
There is a lot of demand for security services over the past few years, including those though times such as covid-19 has increased the demand for security officers. Slow workforce growth has disrupted the deployment of more security officers on the ground. Competition among security companies has also stiffen over the years challenging the ability to recruit and retain security officers.
Outcome Based Contracting is shifting to be the next norm in the security industry contracting for buyers in all industries. A-SAT has been an early adopter of outcome-based contracting industry transformation map (ITM) to focus more on the implementation of technology for better security outcomes. We constantly find solutions to assess the contractual requirements and focus on integrating of both manpower and technology to enhance the productivity and reliance on manpower.
What is Outcome-Based Contract / Security Services?
The Security Industry Transformation Map (ITM) was launched in February 2018. ITM’s vision is to build a vibrant, technologically advanced and competitive security industry that offers greater security and better jobs in Singapore. An important strategy to achieve this it to transform the industry so that it is less dependent on the workforce that uses the technology. Outcome-Based security contracts are a step towards achieving this vision. Its purpose is to provide service buyers with step-by-step advice on how to create performance-based contracts. This is important because when buyers serve based on security outcomes rather than a fixed number of staff, security companies can innovate and offer more productive solutions that integrate manpower, technology and processes. It can create better working and service conditions for security guards. Service buyers can also add value to high-quality, low-cost services in the long run.
Results-Oriented Performance
The service provider’s performance is monitored to achieve the desired security outcome. You can use a performance management matrix that includes both Quantitative and qualitative statistics to evaluate supplier performance. Buyers should gather the best stats for their security needs.
Quality-Oriented Evaluation
The quality characteristics should be valued more than the price during OBC evaluation. Attention to quality benefits providers who give a clear and convincing explanation of how a proposal achieves the desired results.
Productivity Framework
Continuous process improvement should be part of OBC. To better understand operations over time, service providers should be encouraged to propose modifications that achieve the same safety results with lower costs and more efficient use of resources. However, when implementing such a proposal, it is essential to understand that the service providers must maintain contractual responsibility and service levels.
Technologies to Enhance Capabilities
To ensure there is always effective security outcomes, it is vital to identify and implement technologies that enhances the productivity of the security officers. Customizing the tech solutions to tailor suit complex security threats are important. The first sequence of the holistic deployment of both manpower and technology integration is based on the risk assessments by identifying threats and vulnerabilities.
Adaptive Pricing to Regular Contract Reviews
CBOs need to be flexible to adapt to changing market conditions and government regulations. This allows buyers and service providers to share risks honestly and openly. However, when applying inflation-based cost adjustments, buyers should consider PWM wage requirements when prices are adjusted upwards.
Human Capital Effort to Nature Development
The most important aspect of outcome based contracting that we firmly believe is in human capital progression and retention. We have retrained our security officers and incentivized them to adopt technology so that their skills are on par with our vision of providing more outcome-based solutions.
Cost Savings and Understanding Technology Investments
There is always a benefit for both buyers and services providers in the OBC platform. Given that with the implementation of OBC, the reliance of manpower is reduced and savings for headcounts are one of the attractive benefits. The reliance of technology for the service provider in return provides a more effective ROI in terms of its digitalization capabilities. Service providers can in return shift their focus on upgrading skills and provide a better work life balance for all security officers who taken the initiative to acquire trades in technology development.