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Randstad Sourceright Series Part 1 of 3 - Managing SOW Contractors and Consultants

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2 In this installment, we begin with an overview of how SOW arrangements differ from other types of contingent labor management, and how organizations engage with this talent class. development of the SOW workforce SOW use is expanding across all industries as employers seek ways to become more agile. Technology and healthcare are among the sectors with the highest deployment rates. More recently, maintenance and manufacturing are increasingly turning to SOW workers. There are industry differences in how to engage SOW talent. For example, in healthcare, manufacturing, assembly and repair, this class of talent is typically employed onsite. Meanwhile high-tech organizations and companies that rely heavily on knowledge work are much more likely to use SOW contractors or consultants who work remotely, including those based offshore. Indeed, international sourcing of knowledge workers is becoming ubiquitous. Advancing technology, along with the increasingly global reach of MSPs, gives employers access to a rich global talent pool. Asia and the Indian subcontinent in particular are prime targets for companies in North America, Europe and Australia seeking to augment staff with critical skills at competitive rates. If your company includes SOW providers in its contingent workforce mix, how do you procure and manage them? Who creates statements of work and according to what format or template? How do you ensure you are using the right blend of SOW contractors with other external and internal talent? Who monitors milestones? If you struggle with answering these questions, you're not alone. If you have an MSP in place, your company's SOW spend may be even more hidden from view, because many programs don't include SOW management. Hiring managers and suppliers often use this class of talent to keep their activities outside the reach of contingent workforce managers. Maintaining SOW procurement as an element of tail-spend is a common "unofficial" practice among larger organizations, but this approach negatively affects costs and the effectiveness of project management. What is SOW? A statement of work is a document containing binding conditions for a worker's contribution to a specific project. It is used as a control document by the employer, the contractor and a supplier, when one is present. An SOW typically contains the following: • The nature and purpose of the project • The scope of work and precise details of the tasks to be performed • The physical location from where the external worker will perform the tasks • The project timeline, including the estimated number of working hours per week or per month • A schedule of the external worker's deliverables, including delivery dates • A set of quality standards describing the hiring company's expected standard of work • General terms and conditions under which the project will be managed and the work performed • Acceptance criteria, providing descriptions to explain what constitutes a completed deliverable • Pricing and invoicing details for the arrangement between the hiring company and the service provider Contingent workforce leaders surveyed say SOW is incorporated in their program Europe 59% North America 51% source: Staffing Industry Analysts www.randstadsourceright.com

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