2tues 1445 pavillion vms msp landscape renniee …€¦ ·...

©2016 by Crain Communications Inc. All rights reserved.

ResearchThe 2016 VMS & MSP Landscape Series

Speaker:§ Elizabeth Rennie, Global Workforce Solutions,Research Director, CCWP, Staffing Industry Analysts

TUES | 2:45 PM | PAVILION


Revised Report Structure2015 FROM:

§ Covering 23 VMS vendors § Covering 28 MSP vendors

§ Covering 15 VMS vendors

VMS & MSP Landscape

VMS Differentiators Report

§ Covering 15 MSP vendors

MSP Differentiators Report

VMS Market Developments

MSP Market Development

Total Talent Acquisition Market Landscape NEW

2016 TO:

Part 1: Drivers, Innovations & Geographical Capability

Part 2: Market Sizing

Part 3: Market Differentiators

Q1

Q2

Q4




Q2

Q3

Q4

RPO Landscape and Service Developments NEW


AGENDA

1. Executive Summary2. Definitions & Research Methodology4. Drivers and Benefits5. Vendor Landscape and M&A Activity6. Developments: New Offerings7. Geographical Capability and Targeting8. Vendor Profiles

Part 1: Drivers, Innovations & Geographical Capability Part 2: Market Sizing

AGENDA

1. Executive Summary2. Research Methodology4. Market Overview• Global Market Size and Growth • Size by Region • Size Spend by Sourcing Model • Size by Program Type • Technology Adoption• Funding & Pricing Models • Size by Buyer Market Size & Spend Size• Size by Industry• Size by Occupational Classification

5. Vendor Landscape6. Definitions


Report High Level Findings







Q1

Q2

Q4




Q2

Q3

Q4


©2016 by Crain Communications Inc. All rights reserved. 5

1990-‐2006 2006 – 2010 2008-‐2016 2014-‐ and beyond• Supplier scorecards• Preferred Supplier Lists (PSL)

• Rate cards• Emergence of SOW • On/off boardingprocesses

• Increasing global capability

• Beginning analytics

• Worker tracking introduced

• Talent pooling• Onboardingprocesses for direct sourcing

• More benchmarking across workforce segments

• Open architecture with API’s• Market wide benchmarks• Better decision making with focus on analytics

• Increased functionality to decision tree sourcing

• FMS integrations• Total Talent Management delivered with improved integration with or adoption of ATS type functionality

Supplier Centric Marketplace CentricTalent CentricFOCUS:

VMS Part 1: Drivers, Innovations & Geographical Capability

Evolution:



OrganizationalChallenges

VMS Focus



Supplier Landscape:


Number Serviced Regions Targeting

Vendor Countries

No. Countries with Full Invoicing

Lang-‐uages Americas Europe

Middle East/ Africa

Asia Pacific

Extensive (>50)Expanding (10 -‐ 50)Emerging (<10)


Geographical Capability:


1. Availability of analytics across different worker types (Temp vs perm vs IC etc.) with greater data aggregation across multiple client bases for benchmarking

2. Greater integration across different platforms to better support sourcing decisions across worker types

3. Supply and demand being embedded in workforce planning programs for proactive forecasting

4. Marketplaces developed across SaaS platforms to streamline processes5. Direct sourcing functionality alongside the supply management6. Talent pools for contingent workers to increase with improved marketing7. Functionality to support employee referrals and recommendations. 8. Mobile apps for workers and managers to support entry of data and approvals as

well as increased use of automated invoices and electronic invoices9. Program growth in existing clients10. RFX capability


Predictions:









Q1

Q2

Q4




Q2

Q3

Q4



VMS Part 2: Market Sizing

Annual Growth +20% +15% +30% +59%

Global North America Europe Rest of the World

VMS Global Market Spend by Region 2015 (billions)

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

2014 2015



VMS Global Market Spend Work Arrangement 2015 (billions)

$36.80

$83.26

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100

Statement of Work

Temporary Employees & Independent Contractors



VMS Spend by Buyer FTE Headcount Size and Buyer Spend Size (%)

22%

10%

15%30%

24%

Less than $50m$50-‐$100m$100-‐$300m$300-‐$1,000m> $1,000m

17%

10%

9%

63%

Less than 2,000 Employees (FTE)2,000-‐4,999 Employees (FTE)5,000-‐9,000 Employees (FTE)10,000+ Employees (FTE)



VMS Market by MSP Service Model (%)

17%

42%

41%

Vendor's Own MSPInternal Service Program Third Party MSP



Estimated VMS Functional Adoption and Technical Integrations across Buyers

Adoption Rate of VMS Functionality

Agency Supply & Management of Workers including Payrolling üüüü

Contingent Talent Pools üüü

Statement of Work (Administration only) -‐ Emerging üü

Statement of Work (Sourcing & Administration) -‐Emerging ü

Worker Tracking -‐ Emerging ü

Integrated workforce planning (Contingent & Permanent) -‐ Emerging ü

Adoption Rate of VMS Integrations

Single Sign On üü

Integration with External Analytics Tools üü

Integration with SAP SuccessFactors üü

Integration with PeopleSoft (Oracle) üü

Integration with Workday üü

Integration with Taleo (Oracle) ü

FMS Integration* ü


81%

8%

11%

Percentage of SpendFixed Monthly FeeOther


VMS Market by Program Funding and Pricing Model

95%

87%

66%

88%

4%

4%

1%

5%

9%

30%

11%

0% 20% 40% 60% 80% 100%

LATAM

APAC

EMEA

N.America

Supplier Funded Combination Client Funded


$22.14

$18.59$16.35

$14.72

$10.73$8.15

$6.25 $6.11 $6.00 $5.27 $4.53$1.26

$0

$5

$10

$15

$20

$25


VMS Market Size by Industry (billions)



VMS Market by Occupational Skill Category (%)

27%

23%

11%

9%

8%

11%

6%

4%

Information Technology Industrial

Office/clerical

Finance & Accounting

Other Professional

Engineering & Design

Clinical/Scientific

66%

34%

ProfessionalCommercial


Questions?










Q1

Q2

Q4




Q2

Q3

Q4



1990-‐1999 2000 – 2008 2008-‐2016 2014-‐ and beyond• Maximizing scale and volume discounts through Master Vendor approaches• Emergence of SOW • On/off boarding processes• Risk mitigation through automation

• Growing globally

• Emerging analytics

• Worker tracking introduced

• Rise of Vendor Neutral MSP enabled by VMS technology

• Levelling the playing field for strategic suppliers

• Increasing supplier visibility of performance

• More benchmarking across suppliers

• Emergence of centers of excellence and training programs to support MSP program managers in contingent workforce solutions

• Market wide benchmarks across all worker types (SOW, FMS, direct hire)

• Better decision making with focus on analytics

• Candidate pooling• Incorporation of digital sourcing solutions that include FMS offerings

• Direct sourcing for work to, where possible, squeeze out margins

• Increasing MSP value through offering more strategic TTA

• Supplier partnership and success strategies over vendor neutralityFOCUS:

MSP Part 1: Drivers, Innovations & Geographical Capability

Evolution: Sourcing Leveraging Scale Sourcing through Neutral Models Sourcing for Work



OrganizationalChallenges

MSP Focus



Supplier Landscape:


Number Serviced Regions Targeting

Vendor Countries

No. Countries with Full Billing

Lang-‐uages Americas Europe

Middle East/ Africa

Asia Pacific

Extensive (>30)Expanding (10 -‐ 30)Emerging (<10)


Geographical Capability:









Q1

Q2

Q4




Q2

Q3

Q4



MSP Part 2: Market Sizing

Annual Growth +13% +11% +14% +20%

Global North America Europe Rest of the World

MSP Global Market Spend by Region 2015 (billions)


New Definitions• Contingent RPO is a type of Managed Service Provision (See Managed Service Provision)

whereby the supplier sources contingent labor through client-‐dedicated recruiters in an outsourcing mode. These recruiters are trained on the company business and employer brand to attract candidates and any candidate data derived as part of the sourcing process are owned by the client. As such, the candidate database is the IP of the client which is returned at the end of a contract. Also, unlike traditional Master Vendor MSP models, the candidate databases are not shared with other clients and candidates are not offered roles in other companies. The majority of activity for the Contingent RPO supplier relates to performing services that deliver a high percentage of direct sourcing through this model, rather managing and sourcing suppliers which strongly features in a Vendor Neutral MSP model. Further, unlike other MSP models, Contingent RPO pricing is typically volume based, with a price per candidate placed, rather than being based on spend. This model is closer to a Direct Sourcing model (See Direct Sourcing) except that the service is outsourced to a third party.

• Worker Tracking is where contingent workers are logged and tracked (location, time) in the VMS, but invoicing is not in scope. The rationale is to increase visibility of contingent workers and support compliance to onboarding/off boarding processes but invoicing may not be practical to include in scope because of other factors such as volumes, system capability or local regulations.




$1.14

$19.90

$0.19

$10.18

$20.36

$48.28

$0 $10 $20 $30 $40 $50

Outsourced Service Management

Statement of Work

Contingent RPO

Hybrid

Master Supplier MSP

Vendor Neutral

Temporary Employee or Independent Contractor

MSP Global Market Spend Work Arrangement and Sourcing Model 2015 (billions)



MSP Service Adoption across Buyers (measured by % share of workers)

5%

6%

4%

6%

6%

11%

67%

0% 20% 40% 60% 80% 100%

Worker tracking only (no timesheet)

Worker tracking with timesheet process only

SOW project -‐ sourcing & admin

SOW project -‐ administration

Stategic Workforce Planning

Contingent Talent Pool Mgmt

Supplier Management including billing

N=15



68%

15%

11%

6%

Over 10,000 Employees (FTE)

5,000-‐9,000 Employees (FTE)

40%

12%25%

19%

4%

Less than $50m$50-‐$100m$100-‐$300m$300-‐$1,000mOver $1,000m

MSP Spend by Buyer FTE Headcount Size and Buyer Spend Size (%)



MSP Share of Clients which blend with RPO services and Share which blend with Proprietary VMS (weighted by size of vendor) (%)

97%

3%

MSP with No RPO BlendingMSP Blended with RPO

66%

34%

MSP with No VMS BlendingMSP Blending with Provider Proprietary VMS



MSP Providers supporting different VMS Systems (%)

70%

20%

45%

60%

60%

70%

85%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Lumesse TalentLink

Beeline

IQNavigator

Peoplefluent VMS

Proprietary

SAP Fieldglass



VMS System Utilization by MSP Worker Headcount Volume (%)

40%

20%

14%

14%

1% 3%7%

SAP Fieldglass

IQNavigator

Beeline

Proprietary

Lumesse TalentLink

Peoplefluent VMS

Other


81%

13%

2%4%

Percentage of SpendPer WorkerMonthly FeeOther / Combination


MSP Market by Program Funding and Pricing Model

59%

71%

78%

81%

10%

21%

6%

15%

31%

7%

15%

3%

0% 20% 40% 60% 80% 100%

LATAM

EMEA

N.America

APAC

Supplier Funded Other Client Funded



MSP Market Size by Industry (billions)$21.95

$17.08

$10.49$7.57 $7.60

$4.99 $4.33 $4.29 $4.45 $4.41 $3.64 $3.00 $2.96$1.55 $0.68 $0.61

$0

$10

$20



MSP Market by Occupational Skill Category (%)

29%

18%

13%

12%

11%

7%

6%5%

Information Technology IndustrialOther ProfessionalOffice/clericalEngineering & DesignFinance & AccountingHealthcareClinical/Scientific

58%

42%

Professional

Commercial



MSP Market Delivery Models (%)

57%43%

Employees working offsiteEmployees based on client site

44%

40%

12%

4%

Onshore -‐ Client site or Remote

Onshore -‐ service center

Nearshore

OffshoreN=15

N=16


Questions?


Two Easy Ways to Give Feedback§ Rate sessions on the Mobile Community (all sessions)§ Fill out Evaluation Card on your chair (concurrent sessions)

TUES | 2:45 PM | PAVILION


Coming up Next at 3:45

• General Session – Summerlin Ballroom51 in 50

• RELAX at Workforce Solutions Industry Party– Poolside at 5:00

2tues 1445 pavillion vms msp landscape renniee …€¦ ·...

Documents