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MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT 12 www.everestgrp.com | EGR - 2021 - 25 - V - 4434 As an extension of the direct sourcing approach, MSPs will also play a more active role in sourcing freelancers / Independent Contractors (ICs) as an additional channel for direct sourcing. Given the large number of freelancer sourcing channels, each focusing on a particular workforce sub - segment (for example, by job role, geography, or diversity), enterprises find it increasingly difficult to invest time and effort into selecting the most optimal channels. MSPs will play a big role by carefully curating a network of suitable partners that they can leverage to source the right freelancers for their clients. Even as direct sourcing emerges as an attractive and a highly beneficial alternate contingent talent acquisition model, enterprises need to be careful to avoid an overly disruptive break from their usual supplier sourcing operations. Enterprises can work closely with their MSPs to formulate their direct sourcing strategies, especially in terms of which job roles direct sourcing is most suitable for in their context and what role the MSP will play, and then designing SLAs, pricing, and other contractual elements accordingly. Re - defined scope of contingent workforce Statement of Work (SoW), or services procurement, is a huge spend category for most enterprises, often larger than the traditional staff augmentation spend. However, a large portion of this spend often slips under the radar and is not visible to enterprises, as it may fall within procurement departments' tail - spend category in organizations that do not have the bandwidth to actively manage it. MSPs can help organizations gain full visibility into the services procurement spend and help actively manage it end - to - end thereby unlocking significant spend rationalization and positively impacting business outcomes through better access to required skills and the timely and high - quality execution of projects. Traditionally MSPs have been more focused on headcount tracking and compliance (classification) management within this category of contingent workers. As part of MSP 4.0, with the investment in the right people and digital capabilities, MSPs will support enterprises in end - to - end services procurement management, thereby unlocking significantly more value than previously. Services procurement process Value for enterprise Headcount tracking and classification Low : Takes administrative burden off the buyer's shoulders ; provides only administrative cost reduction through more efficient processes (through technology intervention and/or offshoring/nearshoring) Procure - to - pay (P2P) and administrative tasks, e.g., billing, payments, RFP administration Source - to - contract (S2C) and strategic processes (provider selection, strategic sourcing, category management, etc.) High : Directly impacts the full services spend , with potential for significant cost savings while enhancing project quality and timeliness , thereby impacting business outcomes

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