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  • Best Practices in Global Sourcing

    Implementing a multi-country Contingent Workforce Program as consistently as possible is a complex undertaking. Using this report and recommended additional reports and documents, will help to address many of the challenges you may face when undertaking a global expansion. minimize or eliminate many challenges. As with all major change initiatives, early and frequent communication with all key stakeholders is a critical success factor.Significant time should be invested in planning and change management activities with both global colleagues and incumbent and potential suppliers. It is a brave program leader who take a ‘big bang’ approach to a global expansion. Establishing a phased, country-by-country approach may take a little longer, but it will help to identify and address unforeseen challenges on a smaller scale, and fine-tune the plan for subsequent phases.Finally, it is good practice to document changes to the plan as the program evolves to establish a mature and proven methodology that can be revisited in the future as an organization’s global change management toolkit. Best Practices in Global Sourcing 20191108 - You do not have permission to view this object. […]

  • Executive Summary We estimate the 2018 global Vendor Management System (VMS) market at $170 billion spend under management, an increase of 10% from the prior year.Growth remains in double digits for the tenth year in a row, demonstrating that despite a plethora of emerging alternative workforce management options, VMS remains a viable solution for the management of contingent workforce programs. This may be due in part to the evolution of VMS towards more holistic workforce management systems. The Americas region continues to dominate the market with a 65% share (down 1% y/y), but has dipped below double-digit growth for the first time. EMEA maintains healthy growth at 14% with the highest regional growth rates outside the more mature UK market. The APAC market continues to be the fastest growing of the three regions, albeit from a low base. Given the later adoption of VMS in markets outside North America, it is likely that future penetration of pure-play VMS in these markets will be somewhat stifled by the more recent growth in alternative platform solutions coupled with an emerging trend in the acquisition of VMS companies by enterprise spend management providers to expand capability in the contingent workforce category.72% of reported new contracts in 2018 were awarded by buyers or programs that have not had a previous VMS solution in place, suggesting that despite the high level of market penetration, particularly in North America, there is no shortage of organizations seeking a VMS solution for the first time. This could also be an indication of the challenge faced by buyers in changing an embedded technology, with only 28% of newly awarded programs won from an incumbent VMS provider.A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Just over 50% of reported programs have a direct contract with their VMS provider, and 40% of programs are internally managed.Statement of Work (SOW) spend continues to be a focus area for VMS providers, with more than half of participants reporting SOW spend under management. Despite this, SOW represents only 16% of reported 2018 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.Despite perception that adoption of VMS is the preserve of the large enterprise, only a small number of providers dominate the very largest programs, and approximately 70% of participants report an average spend per client under $20 million, signifying plenty of opportunity in the mid-market.Most providers in this study serve multiple regions, although there are providers that are specifically focused on a given country (predominantly US) and whilst VMS providers typically serve a range of industries, some, such as those focusing on healthcare, serve a single industry. VMS Landscape and Differentiators - Part One - VMS Global Landscape 2019 20191106 - You do not have permission to view this object. […]

  • Contingent Workforce Optimization Roadmap

    Since its creation, Staffing Industry Analysts’ (SIA’s)  Contingent Workforce Optimization RoadmapTM has been utilized as a tool by both program managers and executives charged with the task of establishing a contingent workforce program (CW program) for the first time, and those seeking to drive continuous improvement within the program.  The Contingent Workforce Optimization RoadmapTM captures at a high level the most important components of a contingent labor strategy and arranges them in a single, comprehensible view. By displaying the individual activities, the roadmap provides a guideline to manage the execution of the most appropriate strategy, which can then be tailored to the unique challenges of the organization utilizing the tool. The specific method used to maximize value is, of course, unique to the priorities and challenges of each organization.This report summarizes the main characteristics of the Roadmap, and includes, (as separate Excel files), an example project timeline and stakeholder management matrix, as well as references to relevant and associated SIA research. As such, it serves as a comprehensive tool for CW program owners to prepare for implementation (transformation mode), or advance their program beyond the initial implementation phase (adaptation mode), and familiarize themselves with what it takes to elevate a CW program to the next level.  Contingent Workforce Optimization Roadmap and Activity Guides 20190930 - You do not have permission to view this object. CW Optimization Roadmap_Attachment A Example Stakeholder Management Matrix 20190930 - You do not have permission to view this object. CW Optimization Roadmap_ Attachment B Example Project Plan 20190930 - You do not have permission to view this object. […]

  • MSP Landscape and Differentiators. Part 1: Global MSP Landscape

    Executive SummaryIn the period January - December 2018, the Managed Service Provider (MSP) market represented $141 billion of spend under management, with slower growth, estimated at 8% compared to 12% in 2017. The US continues to dominate the global MSP market, with 50% market share, although growth remains higher outside the US, with the EMEA region showing the greatest increase at 19%. Spend on global contracts covering three or more geographical regions continues to grow, as organizations expand program coverage, with approximately 30% of reported spend associated with global contracts. Market growth can be attributed to organic growth within programs, service expansion and net new clients, with 68% of reported net new clients adopting MSP for the first time. Financial Services endures as the dominant consumer of MSP, with a 21% share of spend, followed by Pharma/Biotech which, at 16%, has overtaken Technology/Telecom as the second largest client group. IT remains the most widely sourced occupational skill within MSP programs, with a 29% share of spend, up 4% from 2017.The largest MSPs globally (each with more than $6 billion of spend under management and unchanged from the previous year) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN. Together they represent over 50% of the spend reported by the 26 participants in this study.Although the vendor-neutral model for sourcing temporary workers and independent contractors remains the most prevalent when measured by spend, the number of individual clients adopting alternative models is more evenly balanced, with only 33% of programs adopting a vendor-neutral model and a similar percentage adopting a master-supplier model.Proving that 2017’s blip was not the start of a reversal of the trend of previous years, there is once again more growth in SOW than temp/contract spend, with SOW/outsourcing spend representing 22% of reported spend under management.Although 23% of spend is attributed to programs with a value of $1 billion or more, 52% of individual programs manage spend of $10 million or less demonstrating that contrary to popular belief, the MSP model is not only the preserve of the large enterprise.There is emerging evidence that despite a slow start, ‘Total Talent’ solutions are finally beginning to gain traction, with 15% of MSP spend associated with a blended MSP/RPO service, (a y/y increase of 10%) and more providers actively promoting total talent services. Additionally, 19% of programs now include the provision of strategic workforce planning services.MSP providers are reporting a growth in the provision (and client adoption) of more sophisticated services beyond the core supplier management and billing proposition; direct sourcing services are provided in 31% of programs (up 25% y/y) and 12% offer a white-labeled service utilizing the client brand (up 4% y/y). MSP Landscape 2019 - You do not have permission to view this object. […]

  • Most Complex Staffing Markets Globally

    60 different contingent markets assessed across six Continents. Complex markets identified among both emerging and established contingent markets. Egypt and Venezuela are ranked the most complex locations, followed by Brazil. Most complex Asian contingent market is Indonesia followed by Vietnam and China. The least complex markets in our analysis is New Zealand, followed by the United States and the United Kingdom. The markets that have become less complex compared to a year ago are: France, Austria, Finland and Turkey. The markets that have become more complex compared to a year ago are: Chile, Mexico Singapore and South Africa. To download a full copy of the report, click below: Most Complex Contingent Markets Globally 20191115 - You do not have permission to view this object. To download a copy of the interactive Market Complexity Assessment Tool, click below: Market Complexity Assessment Tool 20191115 - You do not have permission to view this object. […]

  • Best Practices in Global Sourcing

    Implementing a multi-country Contingent Workforce Program as consistently as possible is a complex undertaking. Using this report and recommended additional reports and documents, will help to address many of the challenges you may face when undertaking a global expansion. minimize or eliminate many challenges. As with all major change initiatives, early and frequent communication with all key stakeholders is a critical success factor.Significant time should be invested in planning and change management activities with both global colleagues and incumbent and potential suppliers. It is a brave program leader who take a ‘big bang’ approach to a global expansion. Establishing a phased, country-by-country approach may take a little longer, but it will help to identify and address unforeseen challenges on a smaller scale, and fine-tune the plan for subsequent phases.Finally, it is good practice to document changes to the plan as the program evolves to establish a mature and proven methodology that can be revisited in the future as an organization’s global change management toolkit. Best Practices in Global Sourcing 20191108 - You do not have permission to view this object. […]

  • Executive Summary We estimate the 2018 global Vendor Management System (VMS) market at $170 billion spend under management, an increase of 10% from the prior year.Growth remains in double digits for the tenth year in a row, demonstrating that despite a plethora of emerging alternative workforce management options, VMS remains a viable solution for the management of contingent workforce programs. This may be due in part to the evolution of VMS towards more holistic workforce management systems. The Americas region continues to dominate the market with a 65% share (down 1% y/y), but has dipped below double-digit growth for the first time. EMEA maintains healthy growth at 14% with the highest regional growth rates outside the more mature UK market. The APAC market continues to be the fastest growing of the three regions, albeit from a low base. Given the later adoption of VMS in markets outside North America, it is likely that future penetration of pure-play VMS in these markets will be somewhat stifled by the more recent growth in alternative platform solutions coupled with an emerging trend in the acquisition of VMS companies by enterprise spend management providers to expand capability in the contingent workforce category.72% of reported new contracts in 2018 were awarded by buyers or programs that have not had a previous VMS solution in place, suggesting that despite the high level of market penetration, particularly in North America, there is no shortage of organizations seeking a VMS solution for the first time. This could also be an indication of the challenge faced by buyers in changing an embedded technology, with only 28% of newly awarded programs won from an incumbent VMS provider.A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Just over 50% of reported programs have a direct contract with their VMS provider, and 40% of programs are internally managed.Statement of Work (SOW) spend continues to be a focus area for VMS providers, with more than half of participants reporting SOW spend under management. Despite this, SOW represents only 16% of reported 2018 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.Despite perception that adoption of VMS is the preserve of the large enterprise, only a small number of providers dominate the very largest programs, and approximately 70% of participants report an average spend per client under $20 million, signifying plenty of opportunity in the mid-market.Most providers in this study serve multiple regions, although there are providers that are specifically focused on a given country (predominantly US) and whilst VMS providers typically serve a range of industries, some, such as those focusing on healthcare, serve a single industry. VMS Landscape and Differentiators - Part One - VMS Global Landscape 2019 20191106 - You do not have permission to view this object. […]

  • Executive Summary We estimate the 2018 global Vendor Management System (VMS) market at $170 billion spend under management, an increase of 10% from the prior year.Growth remains in double digits for the tenth year in a row, demonstrating that despite a plethora of emerging alternative workforce management options, VMS remains a viable solution for the management of contingent workforce programs. This may be due in part to the evolution of VMS towards more holistic workforce management systems. The Americas region continues to dominate the market with a 65% share (down 1% y/y), but has dipped below double-digit growth for the first time. EMEA maintains healthy growth at 14% with the highest regional growth rates outside the more mature UK market. The APAC market continues to be the fastest growing of the three regions, albeit from a low base. Given the later adoption of VMS in markets outside North America, it is likely that future penetration of pure-play VMS in these markets will be somewhat stifled by the more recent growth in alternative platform solutions coupled with an emerging trend in the acquisition of VMS companies by enterprise spend management providers to expand capability in the contingent workforce category.72% of reported new contracts in 2018 were awarded by buyers or programs that have not had a previous VMS solution in place, suggesting that despite the high level of market penetration, particularly in North America, there is no shortage of organizations seeking a VMS solution for the first time. This could also be an indication of the challenge faced by buyers in changing an embedded technology, with only 28% of newly awarded programs won from an incumbent VMS provider.A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Just over 50% of reported programs have a direct contract with their VMS provider, and 40% of programs are internally managed.Statement of Work (SOW) spend continues to be a focus area for VMS providers, with more than half of participants reporting SOW spend under management. Despite this, SOW represents only 16% of reported 2018 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.Despite perception that adoption of VMS is the preserve of the large enterprise, only a small number of providers dominate the very largest programs, and approximately 70% of participants report an average spend per client under $20 million, signifying plenty of opportunity in the mid-market.Most providers in this study serve multiple regions, although there are providers that are specifically focused on a given country (predominantly US) and whilst VMS providers typically serve a range of industries, some, such as those focusing on healthcare, serve a single industry. VMS Landscape and Differentiators - Part One - VMS Global Landscape 2019 20191106 - You do not have permission to view this object. […]

  • Best Practices in Global Sourcing

    Implementing a multi-country Contingent Workforce Program as consistently as possible is a complex undertaking. Using this report and recommended additional reports and documents, will help to address many of the challenges you may face when undertaking a global expansion. minimize or eliminate many challenges. As with all major change initiatives, early and frequent communication with all key stakeholders is a critical success factor.Significant time should be invested in planning and change management activities with both global colleagues and incumbent and potential suppliers. It is a brave program leader who take a ‘big bang’ approach to a global expansion. Establishing a phased, country-by-country approach may take a little longer, but it will help to identify and address unforeseen challenges on a smaller scale, and fine-tune the plan for subsequent phases.Finally, it is good practice to document changes to the plan as the program evolves to establish a mature and proven methodology that can be revisited in the future as an organization’s global change management toolkit. Best Practices in Global Sourcing 20191108 - You do not have permission to view this object. […]

  • Executive Summary We estimate the 2018 global Vendor Management System (VMS) market at $170 billion spend under management, an increase of 10% from the prior year.Growth remains in double digits for the tenth year in a row, demonstrating that despite a plethora of emerging alternative workforce management options, VMS remains a viable solution for the management of contingent workforce programs. This may be due in part to the evolution of VMS towards more holistic workforce management systems. The Americas region continues to dominate the market with a 65% share (down 1% y/y), but has dipped below double-digit growth for the first time. EMEA maintains healthy growth at 14% with the highest regional growth rates outside the more mature UK market. The APAC market continues to be the fastest growing of the three regions, albeit from a low base. Given the later adoption of VMS in markets outside North America, it is likely that future penetration of pure-play VMS in these markets will be somewhat stifled by the more recent growth in alternative platform solutions coupled with an emerging trend in the acquisition of VMS companies by enterprise spend management providers to expand capability in the contingent workforce category.72% of reported new contracts in 2018 were awarded by buyers or programs that have not had a previous VMS solution in place, suggesting that despite the high level of market penetration, particularly in North America, there is no shortage of organizations seeking a VMS solution for the first time. This could also be an indication of the challenge faced by buyers in changing an embedded technology, with only 28% of newly awarded programs won from an incumbent VMS provider.A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Just over 50% of reported programs have a direct contract with their VMS provider, and 40% of programs are internally managed.Statement of Work (SOW) spend continues to be a focus area for VMS providers, with more than half of participants reporting SOW spend under management. Despite this, SOW represents only 16% of reported 2018 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.Despite perception that adoption of VMS is the preserve of the large enterprise, only a small number of providers dominate the very largest programs, and approximately 70% of participants report an average spend per client under $20 million, signifying plenty of opportunity in the mid-market.Most providers in this study serve multiple regions, although there are providers that are specifically focused on a given country (predominantly US) and whilst VMS providers typically serve a range of industries, some, such as those focusing on healthcare, serve a single industry. VMS Landscape and Differentiators - Part One - VMS Global Landscape 2019 20191106 - You do not have permission to view this object. […]

  • Executive Summary We estimate the 2018 global Vendor Management System (VMS) market at $170 billion spend under management, an increase of 10% from the prior year.Growth remains in double digits for the tenth year in a row, demonstrating that despite a plethora of emerging alternative workforce management options, VMS remains a viable solution for the management of contingent workforce programs. This may be due in part to the evolution of VMS towards more holistic workforce management systems. The Americas region continues to dominate the market with a 65% share (down 1% y/y), but has dipped below double-digit growth for the first time. EMEA maintains healthy growth at 14% with the highest regional growth rates outside the more mature UK market. The APAC market continues to be the fastest growing of the three regions, albeit from a low base. Given the later adoption of VMS in markets outside North America, it is likely that future penetration of pure-play VMS in these markets will be somewhat stifled by the more recent growth in alternative platform solutions coupled with an emerging trend in the acquisition of VMS companies by enterprise spend management providers to expand capability in the contingent workforce category.72% of reported new contracts in 2018 were awarded by buyers or programs that have not had a previous VMS solution in place, suggesting that despite the high level of market penetration, particularly in North America, there is no shortage of organizations seeking a VMS solution for the first time. This could also be an indication of the challenge faced by buyers in changing an embedded technology, with only 28% of newly awarded programs won from an incumbent VMS provider.A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Just over 50% of reported programs have a direct contract with their VMS provider, and 40% of programs are internally managed.Statement of Work (SOW) spend continues to be a focus area for VMS providers, with more than half of participants reporting SOW spend under management. Despite this, SOW represents only 16% of reported 2018 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.Despite perception that adoption of VMS is the preserve of the large enterprise, only a small number of providers dominate the very largest programs, and approximately 70% of participants report an average spend per client under $20 million, signifying plenty of opportunity in the mid-market.Most providers in this study serve multiple regions, although there are providers that are specifically focused on a given country (predominantly US) and whilst VMS providers typically serve a range of industries, some, such as those focusing on healthcare, serve a single industry. VMS Landscape and Differentiators - Part One - VMS Global Landscape 2019 20191106 - You do not have permission to view this object. […]

  • Contingent Workforce Optimization Roadmap

    Since its creation, Staffing Industry Analysts’ (SIA’s) Contingent Workforce Optimization RoadmapTM has been utilized as a tool by both program managers and executives charged with the task of establishing a contingent workforce program (CW program) for the first time, and those seeking to drive continuous improvement within the program.  The Contingent Workforce Optimization RoadmapTM captures at a high level the most important components of a contingent labor strategy and arranges them in a single, comprehensible view. By displaying the individual activities, the roadmap provides a guideline to manage the execution of the most appropriate strategy, which can then be tailored to the unique challenges of the organization utilizing the tool. The specific method used to maximize value is, of course, unique to the priorities and challenges of each organization.This report summarizes the main characteristics of the Roadmap, and includes, (as separate Excel files), an example project timeline and stakeholder management matrix, as well as references to relevant and associated SIA research. As such, it serves as a comprehensive tool for contingent workforce (CW) program owners to prepare for implementation (transformation mode), or advance their program beyond the initial implementation phase (adaptation mode), and familiarize themselves with what it takes to elevate a CW program to the next level. Contingent Workforce Optimization Roadmap and Activity Guides 20190930 - You do not have permission to view this object. CW Optimization Roadmap_Attachment A Example Stakeholder Management Matrix 20190930 - You do not have permission to view this object. CW Optimization Roadmap_ Attachment B Example Project Plan 20190930 - You do not have permission to view this object. […]