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Thought Leadership Series
This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide
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Need further assistance? Contact SIA customer service at 44-(0)207-194-7754 for Europe and 800-950-9496 for the US.
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
Thought Leadership Series
SOW - A global trend?
20 February 2013
3pm GMT/ 4pm CET
10am PST/ 1pm EST
Thought Leadership Series
©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.
Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
Thought Leadership Series
©2011 by Crain Communications Inc. All rights reserved.
North America
Europe
Rest of World
SOW – A global trend?
Thought Leadership Series
©2011 by Crain Communications Inc. All rights reserved.
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
Thought Leadership Series
Best Contingent Solution?
©2013 by Crain Communications Inc. All rights reserved.
Best Solution by Category
Agency Temps
IndependentContractors
InternalTempPool SOW
Source: Staffing Industry Analysts North American Contingent Buyer Survey 2012
Thought Leadership Series
No Legal Prohibitions
©2013 by Crain Communications Inc. All rights reserved.
• 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)
Thought Leadership Series
VMS & MSP Spend by Worker Classification
©2013 by Crain Communications Inc. All rights reserved.
$ B
illi
on
Source: 2012 VMS/MSP Supplier Competitive Landscape
Thought Leadership Series
SOW Spend Under Management by Region
©2013 by Crain Communications Inc. All rights reserved.
$ B
illi
on
Source: 2012 VMS/MSP Supplier Competitive Landscape
Thought Leadership Series
SOW reported as part of MSP Programme
©2013 by Crain Communications Inc. All rights reserved.
• 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
Source: 2012 VMS/MSP Supplier Competitive Landscape
Thought Leadership Series
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
Thought Leadership Series
Contingent Buyer Intentions over next 2 Years
©2011 by Crain Communications Inc. All rights reserved.Source: 2012 Contingent Buyers Survey
Thought Leadership Series
What does SOW Service really Mean?
Of 284 SOW Programmes in study, percent offering features below
Source: 2012 VMS/MSP Service Differentiators Report
Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
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
- Call Center
- BPO
- Research
- Audit Services
- Legal
- Marketing & Creative
- QA & Testing
- Field Services
Sample SOW categories
© 2013 Fieldglass, Inc. All rights reserved.
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.
© 2013 Fieldglass, Inc. All rights reserved.
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
© 2013 Fieldglass, Inc. All rights reserved.
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
© 2013 Fieldglass, Inc. All rights reserved.
Thought Leadership Series
©2013 by Crain Communications Inc. All rights reserved.
Building a
Business
Case
Thought Leadership Series
Its Not What you Think……
Of 284 SOW Programmes in study, percent offering features below
Source: 2012 VMS/MSP Service Differentiators Report
Thought Leadership Series
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
©2013 by Crain Communications Inc. All rights reserved.
Thought Leadership Series
Questions?
Please use the
Q&A panel
on your screen
Q&A icon
©2013 by Crain Communications Inc. All rights reserved.
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
kmoran@fieldglass.com
+1 312 279 8753
- Mikael Lindmark, VP EMEA
mlindmark@fieldglass.com
+44 (0) 208 757 5830
Thank you for attending the webinar
© 2013 Fieldglass, Inc. All rights reserved.
Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
A Fair & Flexible Workforce for Germany
Hot Topic Think Tank
Contingent Workforce Risk Workshop
Future Trends
Taking Your Programme to the Next Level
Implementing a Pricing Strategy
Birds of a Feather Roundtables
Thought Leadership Series
Thought Leadership Series
©2013 by Crain Communications Inc. All rights reserved.
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
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