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Randstad Sourceright Series Part 3 of 3 - The Business Case for MSP Control

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The first two articles in this series explored the facts regarding SOW workers, suppliers and the opportunities afforded by bringing them into a Managed Services Program (MSP). In this final installment, we'll look at creating a business case to integrate SOW into your MSP. statement of work (SOW) talent management: the business case for MSP control To begin, let's focus briefly on defining SOW and the role it plays within your organization. The obvious question to start with is, "How much do you know about the use of SOW workers within your company?" In many larger companies, the acquisition and management of SOW workers is often decentralized and controlled by the business units or the functional departments that utilize them. In fact, the use of SOW workers is a classic ploy used to hide external staff headcounts and avoid approval workflows or tenure policies. Often, business leaders that use SOW contractors don't consider these as talent but rather an external service and, therefore, fail to consider the compliance aspects of this type of labor. So if you feel that you lack visibility into SOW spend, you probably do. Fortunately, that's good news in terms of building the business case for bringing SOW under proper spend control. SOW under the MSP model Before you can make a concerted effort to create your business case, you need an idea of how much uncontrolled tail spend is incurred through the unmanaged use of SOW workers. This is rarely an easy task, because tail spend flies under the radar of procurement and is seldom properly documented, let alone identified by data that can easily be reported on or visualized. Therefore, understanding the potential value of shifting SOW workers to your MSP will require a deep-dive exercise involving all hiring managers in your organization. As an indication of where to look for value, it might be found in: • Eliminating over-the-top billing practices by suppliers • Reducing security threats caused by incomplete offboarding processes www.randstadsourceright.com

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