3
Buyers engage more SOW workers
Distribution of workers managed
Percentage of workers managed through MSP
independent
contractors
temporary/
contingent
SOW
consultants
up to 2012 2013-2104
source: Everest Group Research
The solution is to integrate SOW suppliers into
your MSP. Service providers are now embracing
SOW management under three primary delivery
models:
Service Procurement Administration
Your procurement team works with the hiring
manager to develop the SOW and select a supplier.
The MSP then takes over management, handling
tasks such as:
• Onboarding individual workers as supplied by
the SOW vendor
• Managing compliance with the SOW agreement
• Progress monitoring
• Milestone administration
Extended Service Procurement
The MSP owns the following additional elements
of SOW procurement:
• Participation in buyer/supplier negotiations
• Managing payments according to the terms
of the SOW
• Analysis of resource utilization and cost
• Identification of potential cost savings/resource
utilization improvements
Service Procurement Full Lifecycle
A suitably equipped MSP should be able to offer
full management capabilities for the entire
lifecycle of multiple SOWs. In addition to the
services provided in the other two models, this
also covers:
• Developing SOW requirements with the end
user/hiring manager
• Drafting the statement of work
• Managing the RFX process and evaluating
vendor responses
• Provision of strategic sourcing expertise and
tools
• Maintenance of a repository of active SOWs
• Management of frameworks across markets
• Leveraging best practices to optimize
compliance and maximize value of SOWs
tangible benefits of integration
Regardless of which model is implemented, there are
substantial benefits from shifting SOW management
away from hiring managers to the MSP. Visibility is
a primary benefit, as is the ability to ensure SOW
procurement is compliant. Meanwhile, worker
classification, which is becoming a growing risk for
many employers, can be safely managed by the MSP.
This frees your team to focus on core tasks rather than
hazard avoidance.
By centralizing contingent workforce spend, your
company can also take a more strategic approach
to sourcing and resource deployment. For example,
your MSP should have analytics capabilities enabling
informed decisions to be made.
www.randstadsourceright.com
Regardless of which model is implemented,
there are substantial benefits from shifting
SOW management away from hiring managers
to the MSP. Visibility is a primary benefit, as is
the ability to ensure SOW procurement does not
remain a maverick element of expenditure.
5%
22%
73%
6%
7%
87%
