Strategic alternatives to the service aggregator model. Outside of this model, customers have the choice of managing a multi-vendor environment themselves, seeking advice from a third party, seeking management support (from a service aggregator) or joining a consortium of buyers or a purchasing group. The latter may have anti-cartel and abuse of dominance problems to resolve. Mortgage lenders often become aggregators, as securitizing a mortgage pool can be seen as a natural extension of their business. When the initiator acts as an aggregator, it usually creates a Special Purpose Vehicle (SPV) as a walled subsidiary for the pooling and sale of credits. This eliminates certain debts and gives the initiator`s aggregator arm the opportunity to purchase credits from other institutions as well as the parent company, as is sometimes necessary to establish a tailor-made MBS. Go get help. Parties considering a service aggregator relationship benefit from the advice and support of experienced outsourcing consultants. Price management. As an agent, an effective service aggregator can get advantageous prices for the customer by negotiating long-term sales contracts.
But a long-term contract, without flexibility or market-oriented options, can destroy the client`s interests. In the absence of an effective mechanism to gain access to reduced market prices over time, the long-term sales contract becomes an albatross around the customer`s neck. Therefore, effective purchasing practices must have a means of pricing. Traditional outsourcing service providers aggregate the purchase of technology and other inputs, package them in a proprietary service envelope, and deliver the package to the customer. Implicit in this pooling of goods, technologies and services is a cost saving through large-scale purchasing. In a service aggregator model, such bundling is done on behalf of the customer, but may have benefits for the service aggregator as credits for purchase volumes that reduce its own costs. Open the entrance, open the exit. If the service aggregator calculates on the basis of management fees and incitive payments, the customer can be linked to the service aggregator. The promise of value therefore depends on whether the customer would be in a better situation at any given time and on a cumulative basis if they did not have the service aggregator. Opening the exit depends on many negotiable considerations.. . .