In the first article of this series, we explored the growth in SOW
procurement and why it makes sense to incorporate it into a Managed
Services Program (MSP). In this installment, we take a deeper look at
the SOW strategic imperative, considering the different engagement
models and focusing on the involvement of SOW suppliers in an MSP.
statement of work (SOW) talent management:
taking the MSP role beyond administration
If your MSP currently has no integration with
SOW talent acquisition and management in your
organization, there's potentially money left on the
table. According to Everest Group Research, involving
your MSP in the transactional elements of SOW
management can net savings of an average 4% to 6%
of spend. That's no small sum for companies spending
millions of dollars on projects every year. The savings
are generated through an MSP's ability to centralize
and automate SOW administration activities, such as:
• Requisition and approval workflows
• Candidate tracking, interview scheduling and
worker onboarding
• Centralized billing and supplier payments
• Offboarding activity
• Headcount tracking
An MSP with the appropriate technology, specialized
expertise and experience in holistic talent management
can offer companies a much broader scope of service
provision. Such a provider can manage the entire life
cycle of multiple SOWs, serving in a more strategic
capacity and mitigating much of the risk involved in
SOW utilization.
generating greater gains
Just how extensive is the value that MSP management
of SOW can deliver? Consider the benefits of a
specialist partner taking ownership of the following
procurement and HR management roles:
• Rationalization of demand
• Sourcing strategy
• Identification of providers
• RFX management
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