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  • CWS Council Early Payment Terms Model 2018

    CWS Council members can use this tool to negotiate with their internal finance to negate the extended payment terms argumentFor information on how to use this tool please contact CWS Council Member Services at enterpriseservices@stafifngindustry.com To download the file please click below: CWS Council Early Payment Terms Model 2018 - You do not have permission to view this object. […]

  • VMS Market Developments Part 2: Market Size and Growth

    Executive SummaryIn 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • MSP Market Developments Part 2: Market Size and Growth

    Executive SummaryIn 2017, the Managed Service Provider (MSP) market represented $131 billion of spend under management, a 12% increase over the prior year. The US dominates the global MSP market, representing a majority of spend by our estimates. Growth is higher outside the US where markets are less developed. Approximately 29% of MSP spend reported among respondents to our survey is associated with global contracts covering three or more geographical regions, an increase from 25% in 2016 as organizations expand program coverage beyond single country scope. Market growth can be attributed to both ongoing program expansions as well as net new clients. The market is represented by a range of client industries, with Financial Services being the largest (with a 21% share) followed by Technology/Telecom (19%) and Manufacturing (14%). IT remains the largest occupational skill represented in the market with 23% of the spend reported in our study, even though the industrial segment is the largest in terms of staffing revenue, both in the US and globally.The largest MSPs globally (each with more than $6 billion in 2017 spend under management) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN.The vendor-neutral model for sourcing temporary employees and independent contractors continues to be the most prevalent sourcing model, with a majority of temp/contract spend.Notably, this was the first year that we have seen more growth in temp/contract spend than in SOW. It could be a one-year blip in the data, or perhaps the trend of SOW gaining share has plateaued. Anecdotally, successful MSP providers have found that managing SOW spend for clients requires a completely different skill set than is usually found in most program offices. This year’s data could represent an industry retrenchment.Despite the professed interest in blended ‘Total Talent’ solutions, only 5% of MSP spend was associated with a blended MSP/RPO service, underlining the difficulty in implementing a combined solution for contingent and non-contingent labor.On average, MSPs reported that only 15% of their workers are supported by programs in which the MSP uses its own proprietary VMS; most depend on several vendor management systems to support services. The most prevalent VMSs (by MSP worker headcount) were SAP Fieldglass (33%), Beeline (23%) and IQN (14%). Beeline and IQN merged in 2016 giving the combined company a 37% share.Not surprisingly, MSP providers offer the lion’s share of the load when it comes to implementation (configuration/data conversion/interface development/testing, measured in days), with 80% of effort delivered by the MSP. In fact, many providers are expanding their service offering to implementation only services in exchange for a fee, as opposed to always being a component of a longer-term relationship.MSP service delivery is relatively balanced in the number of employees working onsite vs. offsite. Of the 46% of employees working offsite, 80% work from onshore service locations, and 12% work nearshore (located in a different country to the client they are serving but in the same general region).The full report can be downloaded by clicking the link below: MSP Market Developments Part 2 2018 20181026 - You do not have permission to view this object. […]

  • Workforce Mix Modeling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the report, please select the link below:  Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]

  • CWS Council Early Payment Terms Model 2018

    CWS Council members can use this tool to negotiate with their internal finance to negate the extended payment terms argumentFor information on how to use this tool please contact CWS Council Member Services at enterpriseservices@stafifngindustry.com To download the file please click below: CWS Council Early Payment Terms Model 2018 - You do not have permission to view this object. […]

  • VMS Market Developments Part 2: Market Size and Growth

    In 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • MSP Market Developments Part 2: Market Size and Growth

    Executive SummaryIn 2017, the Managed Service Provider (MSP) market represented $131 billion of spend under management, a 12% increase over the prior year. The US dominates the global MSP market, representing a majority of spend by our estimates. Growth is higher outside the US where markets are less developed. Approximately 29% of MSP spend reported among respondents to our survey is associated with global contracts covering three or more geographical regions, an increase from 25% in 2016 as organizations expand program coverage beyond single country scope. Market growth can be attributed to both ongoing program expansions as well as net new clients. The market is represented by a range of client industries, with Financial Services being the largest (with a 21% share) followed by Technology/Telecom (19%) and Manufacturing (14%). IT remains the largest occupational skill represented in the market with 23% of the spend reported in our study, even though the industrial segment is the largest in terms of staffing revenue, both in the US and globally.The largest MSPs globally (each with more than $6 billion in 2017 spend under management) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN.The vendor-neutral model for sourcing temporary employees and independent contractors continues to be the most prevalent sourcing model, with a majority of temp/contract spend.Notably, this was the first year that we have seen more growth in temp/contract spend than in SOW. It could be a one-year blip in the data, or perhaps the trend of SOW gaining share has plateaued. Anecdotally, successful MSP providers have found that managing SOW spend for clients requires a completely different skill set than is usually found in most program offices. This year’s data could represent an industry retrenchment.Despite the professed interest in blended ‘Total Talent’ solutions, only 5% of MSP spend was associated with a blended MSP/RPO service, underlining the difficulty in implementing a combined solution for contingent and non-contingent labor.On average, MSPs reported that only 15% of their workers are supported by programs in which the MSP uses its own proprietary VMS; most depend on several vendor management systems to support services. The most prevalent VMSs (by MSP worker headcount) were SAP Fieldglass (33%), Beeline (23%) and IQN (14%). Beeline and IQN merged in 2016 giving the combined company a 37% share.Not surprisingly, MSP providers offer the lion’s share of the load when it comes to implementation (configuration/data conversion/interface development/testing, measured in days), with 80% of effort delivered by the MSP. In fact, many providers are expanding their service offering to implementation only services in exchange for a fee, as opposed to always being a component of a longer-term relationship.MSP service delivery is relatively balanced in the number of employees working onsite vs. offsite. Of the 46% of employees working offsite, 80% work from onshore service locations, and 12% work nearshore (located in a different country to the client they are serving but in the same general region).The full report can be downloaded by clicking the link below: MSP Market Developments Part 2 2018 20181026 - You do not have permission to view this object. […]

  • Workforce Mix Modelling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the full report, please select the following link:  Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]

  • CWS Council Early Payment Terms Model 2018

    CWS Council members can use this tool to negotiate with their internal finance to negate the extended payment terms argumentFor information on how to use this tool please contact CWS Council Member Services at enterpriseservices@stafifngindustry.com To download the file please click below: CWS Council Early Payment Terms Model 2018 - You do not have permission to view this object. […]

  • VMS Market Developments Part 2: Market Size and Growth

    In 2017, the contingent workforce Vendor Management System (VMS) market represented $154 billion of spend under management, an 11% from the prior year. Although growth continues to decelerate, it is still in the double digits, evidence of the appetite for managing contingent workforce programs through a VMS. North America continues to dominate the market with a 66% share, still growing robustly at 10%. EMEA is growing at 14% as it has more untapped terrain in terms of penetration of the staffing and SOW market. The APAC market is growing the fastest of the three regions at 15%, but the growth is from a low base, and it continues to experience challenges in gaining traction in several markets.There is considerable room in the SOW market for more penetration of VMS, and while some providers are reporting 30%+ growth in SOW (and over large numbers), the robust growth is not universal among participants; for some, growth was less than that of temp/contract. Anecdotally, many enterprise buyers continue to struggle to clearly define the role of VMS in managing SOW versus traditional procurement software suites such as Ariba or Coupa.Nearly one third of programs cover three or more regions as vendors continue to roll out capability to new countries, driven by customers that want to gain visibility and centralize control of workers globally.A large share of the market (75%) is represented by client organizations of more than 10,000 employees (FTE), although buyers across all sizes of organizations are represented.As in previous years, the prevalent pricing method is percentage of spend through the program, typically funded by the supplier. However, Europe has a higher adoption of client funded programs due to a number of factors, which include nascent adoption of MSP models leading to supplier resistance in paying the incremental cost versus unproved value. Also, European staffing suppliers often have lower gross margins than most staffing suppliers in North America, making fee absorption a difficult proposition and hindering adoption.The three largest providers globally, each with spend under management above $10 billion, are Beeline, DCR Workforce and SAP Fieldglass. While there are providers that are focused on a given country (US, France, the Netherlands), the majority of providers in our study service multiple regions. VMS providers typically support a wide range of industries, apart from those that are focused on the healthcare market.The full report can be downloaded by clicking the link below: VMS Market Developments - Part 2 20181111 - You do not have permission to view this object. […]

  • MSP Market Developments Part 2: Market Size and Growth

    Executive SummaryIn 2017, the Managed Service Provider (MSP) market represented $131 billion of spend under management, a 12% increase over the prior year. The US dominates the global MSP market, representing a majority of spend by our estimates. Growth is higher outside the US where markets are less developed. Approximately 29% of MSP spend reported among respondents to our survey is associated with global contracts covering three or more geographical regions, an increase from 25% in 2016 as organizations expand program coverage beyond single country scope. Market growth can be attributed to both ongoing program expansions as well as net new clients. The market is represented by a range of client industries, with Financial Services being the largest (with a 21% share) followed by Technology/Telecom (19%) and Manufacturing (14%). IT remains the largest occupational skill represented in the market with 23% of the spend reported in our study, even though the industrial segment is the largest in terms of staffing revenue, both in the US and globally.The largest MSPs globally (each with more than $6 billion in 2017 spend under management) are Allegis Global Solutions, KellyOCG, Pontoon, Randstad Sourceright and TAPFIN.The vendor-neutral model for sourcing temporary employees and independent contractors continues to be the most prevalent sourcing model, with a majority of temp/contract spend.Notably, this was the first year that we have seen more growth in temp/contract spend than in SOW. It could be a one-year blip in the data, or perhaps the trend of SOW gaining share has plateaued. Anecdotally, successful MSP providers have found that managing SOW spend for clients requires a completely different skill set than is usually found in most program offices. This year’s data could represent an industry retrenchment.Despite the professed interest in blended ‘Total Talent’ solutions, only 5% of MSP spend was associated with a blended MSP/RPO service, underlining the difficulty in implementing a combined solution for contingent and non-contingent labor.On average, MSPs reported that only 15% of their workers are supported by programs in which the MSP uses its own proprietary VMS; most depend on several vendor management systems to support services. The most prevalent VMSs (by MSP worker headcount) were SAP Fieldglass (33%), Beeline (23%) and IQN (14%). Beeline and IQN merged in 2016 giving the combined company a 37% share.Not surprisingly, MSP providers offer the lion’s share of the load when it comes to implementation (configuration/data conversion/interface development/testing, measured in days), with 80% of effort delivered by the MSP. In fact, many providers are expanding their service offering to implementation only services in exchange for a fee, as opposed to always being a component of a longer-term relationship.MSP service delivery is relatively balanced in the number of employees working onsite vs. offsite. Of the 46% of employees working offsite, 80% work from onshore service locations, and 12% work nearshore (located in a different country to the client they are serving but in the same general region).The full report can be downloaded by clicking the link below: MSP Market Developments Part 2 2018 20181026 - You do not have permission to view this object. […]

  • Workforce Mix Modeling

    Executive SummaryOrganizations have a wider choice in determining how to get work done than ever before – from employed workers to the various forms of contingent labor; freelance, temporary (via an agency or not), independent contractor and SOW consultant. Workforce Mix Modeling will help you to source the right worker - at the right time - at the right cost - in the right location - with the lowest risk.As organizations continue to explore opportunities to optimize the make-up of their workforce, a bottom-up framework of modeling job title-level decision-making can provide insights as to whether an organization is getting the most from its workforce without assuming unnecessary costs or risks. Considering the relative newness of some worker types, it is not surprising that workforce mix optimization is still taking shape as both art and science. Regardless of current levels, many companies are projecting contingent workforce growth. Therefore, modeling efforts must account for as many priority factors as are practical, for what is most easily measurable (e.g. cost) may not necessarily be what is most important in the end. Workforce mix modeling is a beginning step in making trade-offs and decisions around the optimum way to get work done in your organization. Program owners need to consider both straightforward factors such as cost and softer factors such as learning curve, position volatility, intellectual property risks, customer interactions, etc. Taking the time to model workforce mix from the bottom up can yield significant payoffs and getting the most from one’s workforce is a critical success factor for most companies. But such an undertaking requires careful forethought and consideration if the exercise is to be completed in a timely and accurate manner. Undoubtedly, many recipients are likely to see this as additional work and will look upon such an exercise with suspicion, potentially tainting the validity of their input. Whether these concerns are reasonable or not, managing such perceptions should be taken seriously. Bottom-up planning makes a lot of sense for high-volume roles in an organization where there is a clear choice between contingent and permanent hire based on the workforce mix action plan and other strategic considerations relating to the talent segmentation, corporate priorities and labor market availability.To download the complete report, please select the following link: Workforce Mix Modeling 20180809 - You do not have permission to view this object. […]