MSP case study: SOW talent procurement provides big-picture advantages.

June 5, 2018

With each new SOW reaching well over $3M, the client is poised to save 10 to 15% on each SOW.Randstad Sourceright was already providing a comprehensive managed services program (MSP) for a global technology client. The company’s MSP-controlled staff augmentation encompasses several thousand temporary and contingent workers including leading-edge technology professionals, sales, marketing and other business roles.

Expanding its MSP program to include the seamless addition of statement of work (SOW) talent acquisition and onboarding — which represents more than $250 million in spend alone — the client is enjoying a single integrated solution that delivers higher levels of program governance, internal controls, strategic advantages, centralized process efficiencies and opportunities for cost savings.

the successes.

improved worker and supplier quality

More accurate project monitoring and data reporting enhance project-worker fit, while RFP response review and support services allow procurement to easily identify preferred SOW vendors. Management of the RFP process streamlines competitive bidding, and centralized supplier payments enable better project spend monitoring.

closer line manager and supplier relationships

Through a proactively managed SOW process, line managers are able to collaborate more closely in building SOW talent requirements. This improves transparency of supplier expectations and helps build effective client-vendor relationships.

condensed award time frames

With closer interaction between the client and SOW suppliers, and the ability to pre-identify preferred vendors, projects can be awarded more quickly.

improved compliance and corporate security 

Managing the full onboarding of SOW talent means better vetting and more accurate worker classification. This helps mitigate compliance risks and adds to corporate security through proper talent badging and similar measures.

 

the situation.

Seeking an integrated talent sourcing model to manage both staff augmentation (temp and contingent talent) and SOW workers, the client saw an opportunity to expand its existing MSP talent model. Previously, SOW talent acquisition was decentralized, largely controlled by the individual business units or departments who utilized the workers. Without standardization and internal controls, former processes made it difficult to evaluate supplier performance and ensure the technology leader was getting the best talent at the best price. The company’s talent leaders also hoped to enhance worker tracking capabilities, and project and talent reporting for individual SOW spends, to avoid leaving possible cost savings on the table.

the solution.

Since the initial MSP implementation, Randstad Sourceright and the client have continuously worked together to evolve the company’s contingent workforce model. Through ongoing innovation, the program is enhancing client satisfaction, providing added visibility, and maximizing efficiencies that have led to greater optimization. Seamlessly managing SOW staff augmentation services under the MSP, Randstad Sourceright helps the client operate more strategically from a talent procurement standpoint.

The primary focus in the first year of the SOW program was developing a platform that would help the company realize savings, as well as initially facilitating change management and establishing new processes. Taking advantage of an
on-site Randstad Sourceright SOW specialist, who was already familiar with the client’s complex talent ecosystem, the expanded solution was quickly made operational.

In year two of the SOW program, greater savings organically materialized through the MSP’s involvement during SOW extensions. During this time, Randstad Sourceright also determined ways to further enhance adoption and compliance.

Now, Randstad Sourceright continues to find opportunities for cost savings at all stages of SOW management, and is driving additional value through the selection of suppliers, redeploying SOW solutions/resources across the client enterprise, and continuously improving timeliness, quality and compliance.

With on-site SOW workers added to the company’s managed talent mix, the client is able to exercise the same rigor of process control, program governance and tail spend oversight that is applied to its broader contingent talent model. Management of the SOW program is now centralized, unburdening individual project managers.

By integrating its SOW strategy with its MSP, the technology giant benefits from:integrate SOW strategy with your MSP to add value

  • improved control and management of SOW talent procurement processes
  • greater transparency of manager workforce needs and spend
  • more competitive supplier rates through RFPs
  • extensive support during the RFP process; negotiating scope of work, provider deliverables, worker and program quality standards, acceptance criteria of what constitutes a completed deliverable, pricing, invoicing and talent onboarding
  • front-end buy-in from approved MSP-SOW suppliers and clarity of expectations leading to higher quality of talent and services
  • reduction or elimination of non-competitive single-source contracts
  • opportunities for technology automation
  • easier identification of potential cost savings at all points along the SOW talent life cycle
  • consulting on supplier evaluation to ensure consistent legal compliance
  • delivering more comprehensive automated reporting through the client’s vendor management system (VMS)
  • advising on transitioning suppliers to preferred status, shortening the overall time for RFP awards
  • analyzing current SOWs up for renewal to ensure proper classification, renegotiating terms if needed, and transitioning to staffing augmentation when appropriate — helping realize SOW and contingent talent cost savings

the value-add.

Through an advanced MSP talent model that manages SOW talent procurement, Randstad Sourceright team is not only expertly managing suppliers, solutions and resources, but serving as a trusted consultant and strategic advisor. With this holistic approach, the client is experiencing better quality suppliers and workers, process efficiency and transparency, program management, compliance, cost savings, and the ability to implement talent strategies that positively affect competitive advantage.

 

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