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VMS OVERVIEW AND INDUSTRY TRENDS May 29th, 2014

Proprietary and Confidential to IQNavigator Inc. 2

INTRODUCTION

Brian Hoffmeyer

VP Product Marketing

» 9 + years at IQNavigator » Product Marketing and Management, Professional Services, Industry Solutions

(Consulting) » Passionate about helping clients, partners, and suppliers use the IQNavigator

VMS to achieve strategic business goals


TOPICS

» Global Labour Trends

» VMS 101 – 15+ Years of Evolution

» How Suppliers Benefit from a VMS/MSP

» What’s Next, Where’s the Industry Going

» Features and Functionality

» An Illustrative Case Study

» Q&A


Advanced economies are challenged 16 -18 million college-educated worker shortage by 2020

13% increase in college-educated worker demand

Aging workforce

SOURCE: MCKINSEY & CO.

Potential global shortage of 45 million medium-skilled workers

Surplus of almost 95 million low-skill workers in 2020

GLOBAL LABOUR TRENDS


NON-EMPLOYEE TRENDS

50% Workforce in

2020

7x Temp Labor

Growth Compared to

Total

TITLE HE » Tomorrow: TITLE HE » Yesterday & Today:

6% Workforce in

1989

25% Workforce in

2013

TITLE HE

Agency temps Freelancers Statement of Work Outsourced Services

Non-Employee Labour Categories TITLE HE

Business need for flexibility Worker preference Expanded use of SOW Temp labour at historical

high

Growth Factors


EVOLUTION OF WORKFORCE MANAGEMENT PROGRAMS

1990s 1950s

Mid 1990s 1980s

Late 1990s

2000s

Today

Contingent Staffing

Vendor on Premise (VOP)

Master Vendor

MSP (Managed Service Program)

Vendor Management Systems (VMS)

Globalisation

Expanded Scope


HOW ORGANIZATIONS USE A VMS: PROCURE TO PAYMENT WORKFLOW


KEY WAYS ORGANIZATIONS BENEFIT FROM A VMS

Access to real-time data on spend, headcount, and other key metrics Planning based on historical data and trends Ability to use to help modify stakeholder behaviours

Hard savings through rate cards, competitive bidding, distribution lists & tiers, etc.

Soft savings through process efficiencies

Internal policies – tenure, approvals, on- and off-boarding Contracts – terms, rates, certifications, insurance External policies – taxation & invoicing, data & personal privacy, labor law

User friendly processes that increase quality and lower time-to-fill Notifications to key parties at each step in the process Elimination of manual steps and paper-based processes

Automation

Cost Savings

Visibility

Compliance


KEY WAYS ORGANIZATIONS BENEFIT FROM A VMS

Visibility into/reduction of risks associated with contingent labor mgmt. and services procurement (tenure, on- and of-boarding, IC population)

Clear delineation of employer-employee relationship for contingent labor

Strengthen relationships and garner commitment and support from marketplace

Manage supplier performance

Improved customer satisfaction both with overall program and labor provided

Associated services provide best-in-class program operations

Risk Mitigation

Quality

Supplier Management


WHY BEST-IN-CLASS ORGANIZATIONS USE VMS

» It’s not just about cost savings – as organizations mature in their use of contingent labor, they begin to focus on the items below

» Achieving these things across a global enterprise would be impossible without a VMS

Text and Charts from Aberdeen’s 2013 Contingent Labor Management Strategies Review


HOW SUPPLIERS BENEFIT FROM A VMS/MSP

» Reduced cost of sales – automation, notifications, tiers and distribution lists

» Reduced administrative burden – everything is online and reportable (e.g. timecards, consolidated invoices)

» Improved accounts receivable – regular/faster payments, less time spent tracking receivables


HOW SUPPLIERS BENEFIT FROM A VMS/MSP

» Level playing field – all suppliers get requisitions at the same time and with consistent information

» Larger number of fills – quality suppliers will be rewarded with additional business based on performance not relationships

» Greater number of opportunities – strong programs typically expand into additional categories and geographies

» Feedback loops Demand management/forecasting Supplier performance based on quantitative metrics Supplier feedback on program processes and technology


WHERE THE MARKET IS GOING Continuous Maturation, Always Expanding

Other Considerations

Global Coverage & Localization Extended Services Categories Enhanced System Requirements

– Security – Scalability – Functionality

Information & Benchmarking – Reporting – Market Intelligence

Contingent Labor Time and Expense

Projects / SOW Milestone, Fixed Bid, Unit Based

Complex Services Managed Services, Legal, Mgmt., Off Shore, etc.

Comprehensive Talent Management Services

Talent Pools Freelancers Private Marketplaces FTE Bench

TECHNOLOGY REQUIREMENTS

COM

PLEX

ITY


VMS STRATEGY & DIRECTION Platform solution for the non-employee management strategy

RegionalMSP

2

MV/VOP

SOW

Service Provider

Online Staffing

RegionalMSP

1

Self- Service

IC VMS


SaaS configurability agile delivery integration innovation global footprint big data on demand scale innovative technologies

HOW IS VMS TECHNOLOGY EVOLVING?

CLIENT NON-EMPLOYEE LABOUR

PRODUCT

TECHNOLOGY

mobile talent pools marketplace communities data science verticals workflow recommendation engines


MOBILE FIRST

» Anytime, any device, any where

» Contractor Time & Expense App iOS & Android

» Manager iPad App

» Approvals on mobile devices


EMBEDDED BUSINESS INTELLIGENCE

» “Analytics for everyone” – in reports and embedded

» Easy-to-use, drag-and-drop report designer

» Interactive / embedded user-driven scalable reporting platform

» Export reports in different formats (Excel, PDF, HTML)

» Multiple visual data formats Crosstab

Line chart

Bar graph

Pie Chart


BIG DATA – RATE BENCHMARKING

Instant access to current, customized temp labor bill rates Evaluate your firm’s bill

rate performance against recent, actual market rates

Build plans and forecasts using current market data

Get the right talent fit and the right bill rate for the role being filled

$20B in contingent labor spend data

RateIQ IQNdex

Price index tracking temp labor bill rate trends Details by region and job

category, including trends and drivers

Top “Hot Spots” by job title and city

Direct market insight based on actual market-clearing transactions

Focused exclusively on bill rates for contingent and project labor


IQN INTEGRATION CAPABILITIES

Typical Integrations

IQNtegrator

USER LOAD Roles & responsibilities Approval limits Hierarchies & data

visibility

SINGLE SIGN-ON SAML standard Works with email

notification links SECURITY/PROVISIONING For building & systems

access Equipment provisioning

TIMEFEEDS For project tracking,

manufacturing facilities, supplier time-keeping

COST ALLOCATION CODES Cost codes, business

structures Hierarchies CONSOLIDATED INVOICE Allocated to cost codes Pre-approved, pre-

reconciled

» Drag-and-drop process and data mapping

» User entered business logic

» New integrations and changes in days, not weeks

» Fast and accurate testing

» No software release required

Integration Platform

IQN VMS


SUPPLIER INTEGRATIONS

» Portal for IQN’s developer network: suppliers, clients, and partners

» A comprehensive suite of in- and outbound web services based on HR-XML standards – 12 services available today

» Comprehensive technical documentation and support for each integration

» Easy standardized integrations that leverage existing architecture

Developer portal for Procure-to-Pay automation


TOTAL WORKFORCE PLANNING Strategic and tactical insight and analytics across the C-suite

IQN Reporting and Anaylytics

Standalone Database

Integrations from HCM and ATS

Tracking Components

Display of TW Analytics in the app


Talent Pools

ON-DEMAND TALENT Total Human Capital Management

Quicker Access to Talent On-Demand Talent Inventory

Better Performers / Calibrated Predictability

Full Time Workers

Returning Workers

Brand Loyalty

Freelancers

Interns

Referrals


THE OUTCOMES

BUSINESS CHALLENGES IQNAVIGATOR SOLUTION

» No visibility into: System and facility access granted

to a large population

» No controls or visibility into whether suppliers providing services had an MSA

» No on-boarding and off-boarding process or controls in place

» No way to manage compliance with approval and rate card policies

» Implemented a VMS to serve as the single source of information for all non-employee workers

» Implemented streamlined business process to manage all categories of spend: Process varies by category for ease of

use Controls around approvals and

negotiated rate cards Compliant invoices sent to 5 different AP

systems

» Real-time synchronization with HR IS for system and building access

» Regular audits to ensure IQN and HR IS are synchronized

Company Profile: Global company that partners with institutional investors to provide comprehensive financial services

including investment management, investment research/trading and investment servicing. Categories Supported – Admin/Clerical, Engineering (non-IT), Finance/Accounting, IT, Professional (HR,

Legal, Business, Procurement) IT SOW, Management Consulting, and Headcount Tracking Countries Supported – 12 (North America, EMEA, and APAC) Spend – $415 million annually program Model – VMS/MSP

» All non-employees globally (12,000+) are tracked in IQN

» Passed audits regarding policy compliance

» Established formal controls for accessing systems and facilities

» Allows for hundreds of suppliers to provide contractors for non-essential positions

Visibility and Control Case Study – Global Financial Services and Investment Management Company

QUESTIONS & ANSWERS

CONTACT INFO: [email protected]

@iqnavigator and @chezhoff


OVER A DECADE OF LEADERSHIP IN SERVICES PROCUREMENT SOFTWARE

» Strong Foundations for Client Success

Vendor Management System industry leader for 14+ Years › $20 billion + in spend under management › 150+ customers › 35% of total spend is outside the US › 40% of total spend is Statement of Work › 420 employees

Built-for-purpose solution for managing non-employee workforce › All services procurement spend categories › Single, unified, global, end-to-end system › Simple & intuitive analytics and decision making › Mobile applications on iOS and Android › 700+ integrations with all major ERPs

Extensive international experience › Localized for 47 countries › Available in 16 languages


IQNAVIGATOR GLOBAL COVERAGE

Localised and Active Countries

Localized – 44 Countries Active - 124 Countries

Cantonese Czech Dutch English French

Canadian French

Continental German

Indonesian Italian Japanese Korean Mandarin Portuguese Spanish Russian Slovak

16 Available Languages

IQNavigator is Present in 94% of the World’s Market*

*Based on GDP of Active Countries vs. World GDP

170+ Available Currencies

Documents

VMS OVERVIEW AND INDUSTRY TRENDS - ACSESSconference2014.acsess.org › sites › default › uploads › files › ...Legal, Business, Procurement) IT SOW, Management Consulting, and