thought leadership series sow - a global trend?€¦ · thought leadership series this webinar is...

Thought Leadership Series

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Presenters:

John Nurthen, Executive Director International Development, SIA

Bryan Pena, VP Contingent Workforce Strategies & Research, SIA

Mikael Lindmark, VP EMEA, Fieldglass

Arun Srinivasan, VP Marketing & Strategy, Fieldglass

Sponsored by


SOW - A global trend?

20 February 2013

3pm GMT/ 4pm CET

10am PST/ 1pm EST


©2012 by Crain Communications Inc. All rights reserved.

Welcome to the Staffing Industry Analysts 2013

Industry Thought Leadership Series

Suppliers Of Staffing Services Share Their Expertise

SIA’s Thought Leadership Series provides the perspective of

suppliers of staffing services. The views expressed in this

webinar include those of the sponsor and not necessarily

those of Staffing Industry Analysts.



North America

Europe

Rest of World

SOW – A global trend?



What is SOW?

Statement of Work (SOW) — A document that captures the work products and services,

including, but not limited to: the work activities and deliverables to be supplied under a

contract or as part of a project timeline. In contrast to a typical temp or contingent

work arrangement which is billed based on time worked, SOW agreements are

usually billed based on a fixed price deliverable or for hitting specific milestones.

Like typical contingent arrangements, they may also be billed based on time, including

arrangements where there is a time-based billing that is capped at some “not to exceed”

level for time and materials

Statement of Work (SOW) Consultant — Any consultant performing work on a project

under a SOW arrangement. In contrast to agency consultants, SOW consultants are

typically, but not always given a regular, consistent salary by their employer and continue

to receive this salary when off project assignments (i.e., “benched resource”). While SOW

consultants are typically employed by consulting firms, a host of technology and other

staffing firms have also entered the solutions space for its greater premium margins (the

theory being that you are paying for the firm’s proven methodology and chemistry of the

team). At times “rogue” managers have used an SOW arrangement in order to avoid

restrictions on the use of temporary workers or agency consultants


Best Contingent Solution?


Best Solution by Category

Agency Temps

IndependentContractors

InternalTempPool SOW

Source: Staffing Industry Analysts North American Contingent Buyer Survey 2012


No Legal Prohibitions


• SOW is based on contract law so has none of the

various restrictions placed on the employment of

full-time employees or temporary workers

• But contract law is not harmonised universally (even

in the EU…yet) so be aware of differences

– Common Law Countries v Civil Law Countries

Civil Law

Common Law

Bijudicial or Mixed Law

Customary Law

Islamic Law (Sharia)


VMS & MSP Spend by Worker Classification


$ B

illi

on

Source: 2012 VMS/MSP Supplier Competitive Landscape


SOW Spend Under Management by Region


$ B

illi

on



SOW reported as part of MSP Programme


• Australia

• Argentina

• Bangladesh

• Brazil

• Canada

• Chile

• China

• Colombia

• Czech Republic

• Denmark

• Ecuador

• Egypt

• Finland

• France

• Germany

• Greece

• Hong Kong

• Hungary

• India

• Indonesia

• Ireland

• Israel

• Japan

• Kuwait

• Lebanon

• Luxembourg

• Malaysia

• Mexico

• Netherlands

• Norway

• Peru

• Philippines

• Poland

• Portugal

• Puerto Rica

• Qatar

• Romania

• Russia

• Saudi Arabia

• Slovakia

• South Africa

• South Korea

• Sweden

• Switzerland

• Taiwan

• Thailand

• Turkey

• UAE

• UK

• US

• Venezuela

• Vietnam



Mix of MSP spend by Country – Largest 15 markets

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

Ireland

Spain

Switzerland

China (ex. HK)

Belgium

Sweden

Germany

Japan

Australia

The Netherlands

France

Canada

India

U.K.

U.S.

Temp/Contract

SOW

Outsourced

©2013 by Crain Communications Inc. All rights reserved.Source: 2012 VMS/MSP Supplier Competitive Landscape


Contingent Buyer Intentions over next 2 Years

©2011 by Crain Communications Inc. All rights reserved.Source: 2012 Contingent Buyers Survey


What does SOW Service really Mean?

Of 284 SOW Programmes in study, percent offering features below

Source: 2012 VMS/MSP Service Differentiators Report



Mikael Lindmark

VP EMEA

Fieldglass

Arun Srinivasan

VP Marketing & Strategy

Fieldglass

Today’s sponsor

15

Fieldglass Overview

© 2013 Fieldglass, Inc. All rights reserved.

Global

Walk-up-and-use user interface

Culture of partnerships

Largest customer base

12+ years, #1 in customer satisfaction in 2012 SIA survey

Deployed in 78 countries, 12 languages

Easy-to-use

200+ companies, VMS spend leader

✓

✓

✓

✓

Representative Customers

16

Varied Landscape For SOW Services

Services procurement covers many different categories

- IT Services

- Financial Services

- Facilities

- Risk & Compliance

- Engineering

- Business Consulting

- Maintenance & Support

- Training

- HR & Benefits

- Print

- Call Center

- BPO

- Research

- Audit Services

- Legal

- Marketing & Creative

- QA & Testing

- Field Services

Sample SOW categories


17

Business ProcessesBlanket orders, transactional sourcing, discounts,

retainage, forecasting, etc.

Deliverable TypesTime and material, fixed-fee, schedule-based,

units-based, etc.

Usage PatternsProject-based, outsourced/offshore, business

consulting, etc.

Multi-Layer Mapping of Service Categories

Specific process paths depend on multiple factors

Service CategoriesIT services, financial services, engineering,

marketing and creative, field services, etc.


18

Recognizing Common Usage Patterns is Key

Common patterns are emerging in the market

Project-based Services

- Characterized by well-defined projects or functional areas

Outsourced/Offshore

- Any combination of off-site, near-shore, or off-shore services

Business Consulting

- High-value consulting; engaged typically at corporate level

BPO

- Complete outsouring of a category from planning to delivery

Re-billable Services

- Engaging vendors to deliver services to end-clients

Independents

- Engaging independent consultants or a community of smaller suppliers


19

SOW Program Management

MSP (Managed Service Provider) program

A 3rd party provider manages all program operationsSelf-managed program

An internal group manages program operations

Blended program

Combination of the above models based on region/service categories/business units

Contributing factors

- Nature of vendor relationships

- Organizational culture

- Degree of decentralization

- Cross-functional variations

- Regional requirements

- Compliance drivers© 2013 Fieldglass, Inc. All rights reserved.

20

Key Considerations: SOW Program Rollout

European market considerations for rolling out SOW programs

Program Rollout Checklist

� Assess current state

� Develop business case

� Identify cross-functional stakeholder team

� Establish governance structure

� Define rollout path: categories, regions,

business units, etc.

� Define appropriate operational model

� Select vendor(s)

� Define critical integration points

� Establish change management and

communication plan

� Establish success/progress metrics

� Rollout program (design, implement)

� Monitor success metrics & adapt

- Business case emphasis

- Process efficiency

- Supplier partnership

- Visibility & tracking

- Engaging suppliers




Building a

Business

Case


Its Not What you Think……

Of 284 SOW Programmes in study, percent offering features below

Source: 2012 VMS/MSP Service Differentiators Report


What is the Greatest value gained by including SOW in your Programme?

• Can identify SOW workers that are really

temps

• CW Tracking

• Full picture of spend and headcount

• Headcount visibility

• Managing rates

• Mark-up visibility

• More visibility

• Opportunity to negotiate costs, spend

visibility, and ease of payment for suppliers

(VMS)

• Risk Mitigation & Visibility to Resources and

Control of Offboarding/Onboarding/Spend

• Tracking Tenure & spend

• This will ensure management is engaging

labour properly and prevents suppliers from

charging consulting “rates without sharing any

risk when resources are being managed

directly by our managers"

• Visibility

• Visibility into the spend and being able to

establish metrics on it

• Visibility of cost, risk and quality at the

resource level....drives better cost

management, better supplier management,

and better risk mitigation

• Visibility of the skills utilised which could be

undertaken by own employees/ T&M

resources - aids labour optimisation

• Worker Classification and streamlined

engagement process



Questions?

Please use the

Q&A panel

on your screen

Q&A icon


25

You will receive a copy of a Fieldglass Whitepaper

The Next Frontier: Tackling

Complex and Project-Based

Services Spend

For more information contact:

- Kelly Moran, Customer Advocacy Manager

[email protected]

+1 312 279 8753

- Mikael Lindmark, VP EMEA

[email protected]

+44 (0) 208 757 5830

Thank you for attending the webinar




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Birds of a Feather Roundtables



Next Buyer Webinar:

Understanding contingent workforce

risk and developing a global

risk assessment framework

20 March 2013

10:00 EST, 15:00 GMT, 16:00h CETSponsored by IQ Navigator

thought leadership series sow - a global trend?€¦ · thought leadership series this webinar is...

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