3 pm gmt/4pm cet 7am pst/10 am est sow & project services ... · sow & project services:...
TRANSCRIPT
©2015 by Crain Communications Inc. All rights reserved.Confidential Report – NOT for Distribution | ©2015 by Crain Communications Inc. All rights reserved.
SOW & Project Services: Are Europeans Late Adopters?Presented by:
Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts
Manuel Roger , SVP EMEA Markets and Operations, Beeline
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 bar on the audio broadcasting icon. If you cannot access the audio, you
may dial into the call by dialing 1-650-479-3208 and using access code 665 039 810 . Need further assistance?
Contact SIA customer service at 800-950-9496 or [email protected]
25 March, 2015
3 pm GMT/4pm CET
7am PST/10 am EST
CWS Council Members (partial public list)
DuPont
Confidential Report – NOT for Distribution | ©2015 by Crain Communications Inc. All rights reserved.
©2015 by Crain Communications Inc. All rights reserved.
Take the class.CCWP is the only accreditation program for the CW
management professional.
Pass the test.CCWP certification is earned by taking the
class and passing a rigorous certification exam.
Get Certified.Join an elite brand of industry professionals and get the
respect and recognition you deserve.
©2015 by Crain Communications Inc. All rights reserved.
New 2015 Dates:
March 17th & 18th (Tue/Wed) Orlando, FL
April 14th & 15th (Tues/Wed) NYC, NY (Pfizer)
May 12th & 13th (Tue/Wed) Washington, DC
July 14th & 15th (Tue/Wed) Chicago, IL
Oct 6th & 7th (Tue/Wed) London, UK
Oct 21st & 22nd (Wed/Thur) Dallas, TX
Dec 8th & 9th (Tue/Wed) Northern California
Contact Member Services for more information:
Phone: +44 (0)203 478 5287 or
Email: [email protected]
Mark Your Calendar
2015 Contingent
Workforce Conferences
CWS Summit Europe | April 21-22 Hotel Okura, Amsterdam | cwssummiteu.com
CWS Summit Asia Pacific | July 22-23Shangri-La Hotel, Singapore | cwssummitap.com
CWS Summit North America | October 19-20CW Solutions Forum | October 21-22Omni Dallas Hotel, Dallas, TX cwsolutionsforum.com | cwssummit.com
Our speakers today…
Bryan Peña, VP, Contingent Workforce Strategies & Research, Staffing Industry Analysts
Manuel Roger, SVP EMEA Markets and Operations,Beeline
Confidential Report – NOT for Distribution | ©2015 by Crain Communications Inc. All rights reserved.
Questions
Time for a poll?
©2015 by Crain Communications Inc. All rights reserved.
Agenda
• SOW and Project Services
– What does the data say?
• How does this differ from “Staffing
Procurement”
• Elements of the Services Procurement
Market
• Are Europeans late adopters?
– Why/Why Not?
©2015 by Crain Communications Inc. All rights reserved.
Programs are evolving….
Buyers are changing….hopefully
Adoption Curve
Innovators Early
Adopters
Early Majority Late Majority Laggards
Enthusiasts
Visionaries
Pragmatists
Conservatives
Skeptics
For now…..
Decentralized• Several suppliers
• Procurement done
on an ad-hoc basis
• Management
done internally
Master Vendor• One supplier
(possibly
managing 2nd and
3rd tier suppliers)
• One point of
contact
• Direct cost savings
on bill rate and
usage
• Customized SLA’s
and process
Managed
Service
Provider (MSP)• Contingent
workforce spend
under management
• One contact point
• Direct cost savings
on bill rate/usage
• Customized SLA’s
and process
• Non-compliant
spend elimination
• Total cost of
ownership savings
Total Talent
Management • Total workforce
spend under
management
• Complete workforce
visibility
• Direct cost savings
on bill rate and
usage
• Customized SLA’s
and process
• Non-compliant
spend elimination
• Increased total
cost of ownership
savings
• Additional
productivity and
process savings
• High degree of
value added services
CW as a
Strategic
Competitive
Advantage
• CW talent as
business
differentiator
• Management
strategies move
beyond tactical
considerations into
strategic ones
• Combination of
multiple CW models
to solve complex
business problems.
• Technology crosses
multiple platforms
in the enterprise
• Risks managed on a
total enterprise basis
with big picture
focus on risks of
action and inaction
Preferred
suppliers• Selective set of
suppliers selected
• Contracts in place
• Service level
agreements
(SLA’s) in place
Procurement
HR
Buyer Plans: 2014
Vendor Management Strategies
SOW?
SOW management – “Services Procurement”
What is it? How does it work?
March 25, 201519
What is Services Procurement?
“Services Procurement is a process for
buying and managing strategic & non-strategic services and consultancy
through a Statement of Work (SOW)”
Services can be procured either on a fixed-priceor a time-and-materials basis.
Services Procurement vs. (Temp) Staffing Procurement
Temporary Staffing Services & Consultancy
General Staffing Professional Staffing Services Procurement
• Client is buying a person to staff augment their workforce
• Adds capacity, flexibility, and scalability
• Resource managed by the client (user company)
• Staffing law & regulations applicable (AWR, Phasing, Equal pay, etc.)
• Time & Material – compensated by the hour
• 3-party contractual relationship (Client / Temp. staff / Staffing agency)
• MSA – pre-agreed T&C
• Client is buying a service
• Adds expertise / Know-how
• Supplier managing and responsible for the delivery
• No (direct) link to staffing legislation / regulation
• Fixed priced – Delivery based – Milestones
• Bilateral commercial relationship (Client / Suppliers)
• MSA – T&C negotiated case by case in SOW
• Commoditised skills
• Task oriented/lower value
• Repeatable hiring process
• Weekly workers
• Short assignments (H – D - W)
• High value added
• Project oriented
• Thorough hiring process
• Monthly workers
• Longer assignments (W – M)
• Specialised skills not inherent to current staff
• Project oriented
• High value / high cost / high risk
• Fragmented
• Complex contracts and deliverables
• Longer time frames (M)
Candidate - Worker - Resume - Interview - Earning code / Coefficient /
Markup
Consultant – Skills / Know-how - SOW – SLA – Delivery based
– Milestone – Service
22
AW
AR
D
Source Engage Manage Report
Build Bid & Release to Vendors
Negotiate & Finalise SOW
ManageProject
Report
Review Bid Submission
Build SOW from Template
1 2 3 4
PR
OJ
EC
T
INV
OIC
E
AN
ALY
SIS
OverseeComplete work
All steps can be managed within an appropriately configured VMS
Services Procurement – How does it work?
SOW management – “Services Procurement”Some insights on the market
March 25, 201523
Ciett 2014 Economic ReportAgency Workers
36 million temporary workers
11.5 millionjobs
300 billion eurosspend
36.5%Europe’s share of global market
28.9%United States share of global market
Global Temporary (Contingent) Staffing
1.6%Europe
2.0%United States
3.5%United Kingdom
Agency Worker Penetration Rates
© Prisme
11 500
2 696
96
3,5%
1 500
18 667
350
1,9%
9 078
4 583
95
2,1%
3 540
2 458
59
2,4%
363
63 085
331
0,5%
85
296 471
2 529
0,9%
142
34 507
599
1,7%
500
9 800
130
1,3%
265
19 623
264
1,3%
# ETT différents
Population active / ETT
ETP Intérim / ETT
Tx de pénétration TT
# Staffing agencies
Active population / supplier
FTE staffing / Supplier
% Penetration rate
Liberal Legislation
Restrictive Legislation
European Temp Staffing Market Structure
$354.7
$250.5$122.1
$345.2
Value of SOW by Sector ($bn)
IT Consultancy Law Accountancy
Asia Pacific Europe Americas Rest of World
Total by Sector
Information Technology 67.5 105.5 173.2 8.5 354.7
Corporate Strategy 2.3 15.8 47.8 0.4 66.3
Operations Management 8.3 38.5 49.4 0.5 96.8
Human Resources Management
6.8 9.9 21.7 0.2 38.7
Other Consultancy 3.1 15.1 30.3 0.3 48.7
Law 16.1 36.9 67.4 1.7 122.1
Accountancy 43.8 133.2 159.8 8.3 345.2
Total by Region 148.0 354.9 549.6 19.9 1.072.4
Value of SOW by Region (USD billion)
Source: Staffing Industry Analysts Global Contingent Market Estimate, 9 March, 2015 (based on Informa MarketLine 2013 data)
$354
$1,055
$1,072
$673
Value of Contingent Work ($bn)
TAW (FTE) Independent Contractors SOW Other Temporaries
Europe is 33% of SOW spend
SOW is 34% of global spend
SOW is 3x Temporary Agency Work (TAW)– I/C is 3x TAW
Spend (
€B
illio
ns)
of Top 3
Glo
bal V
MS
Europe trailing in VMS adoption
March 25, 201528
SOW management growing more slowly than Contingent Staffing in Europe. Why?
More fragmented spend and markets
Market less mature & structured
Niche suppliers
Staff Aug first – then SOW
Professional Services considered:
– “too strategic”
– “too difficult”
– “too risky”
for indirect procurement to manage
EMEA laws/regulations are complex – Perceived risk
Are MSPs ready?
Possible explanations
Many organisations use ERP and eProcurement
– Right tools for buying goods and commodity services
from a catalog
– Wrong tools for managing SOWs
Unaware of VMS’ ability to manage Services Procurement
– Just learning value of VMS for Contingent Staffing
– Not aware that “staff aug tool” can solve same
problems for
Services Procurement
Misunderstanding about tools to use
“I have untracked workers in my facilities.”
“My managers go outside
our systems & processes
to procure projects.”
“Non-standard SOWs require additional
reviews that create bottlenecks in our
process.”
“Manual processes have
caused delayed payments and
gaps in productivity.”
“We continue to use poorly
performing suppliers that deliver
late.”
“Our only performance
reports are generated by
our suppliers.”
“I have no visibility or safeguards to know
if suppliers are following our rules and
regulations.”
“I don’t know our true amount of spend
for services.”
“We’ve used consultants when a lower priced
contractor would have been more
appropriate.”
“Our managers have ‘reused’ project funds or purchase orders
to bill for unplanned work.”
What we hear…
Early adopter? Lagger? Still thinking about it?
Does your organization have a process in place to manage your
SOW/Services Procurement engagements?
A. Yes
B. Somewhat
C. No
D. Not sure
E. What do you mean?
What about you?
Recap – now you know:
• The core elements of Services Procurement management
- What it is
- Where it fits
- Significance as percentage of overall extended workforce
spend
• Reasons for slower adoption rate in Europe
• There is light a the end of the tunnel
Innovative organisations increasingly engage consultants and outsourced services as a way to achieve leaner, tighter business models. Engaging outside experts can reduce costs while helping businesses become more competitive and improve customer service, but only if the services procurement process is well managed. Learn how.
Download our whitepaper at
http://www.beeline.com/thought-leadership/whitepapers/services-procurement/
Services Procurement Management: Optimise the Value of Your Extended Workforce
Contact information:
Manuel RogerSVP EMEA Markets and [email protected] House, 6 Kean Street, London, WC2B 4AS
Thank You!
Thanks!!!!!
Mark Your Calendar
2015 Contingent
Workforce Conferences
CWS Summit Europe | April 21-22 Hotel Okura, Amsterdam | cwssummiteu.com
CWS Summit Asia Pacific | July 22-23Shangri-La Hotel, Singapore | cwssummitap.com
CWS Summit North America | October 19-20CW Solutions Forum | October 21-22Omni Dallas Hotel, Dallas, TX cwsolutionsforum.com | cwssummit.com
©2015 by Crain Communications Inc. All rights reserved.
Take the class.CCWP is the only accreditation program for the CW
management professional.
Pass the test.CCWP certification is earned by taking the
class and passing a rigorous certification exam.
Get Certified.Join an elite brand of industry professionals and get the
respect and recognition you deserve.
©2015 by Crain Communications Inc. All rights reserved.
New 2015 Dates:
March 17th & 18th (Tue/Wed) Orlando, FL
April 14th & 15th (Tues/Wed) NYC, NY (Pfizer)
May 12th & 13th (Tue/Wed) Washington, DC
July 14th & 15th (Tue/Wed) Chicago, IL
Oct 6th & 7th (Tue/Wed) London, UK
Oct 21st & 22nd (Wed/Thur) Dallas, TX
Dec 8th & 9th (Tue/Wed) Northern California
Contact Member Services for more information:
Phone: +44 (0)203 478 5287 or
Email: [email protected]
Join us next time for:
Managing Risk & Understanding Operating Models
For European Programmes
29 April, 2015
3 pm GMT/4pm CET
7am PST/10 am EST
Full schedule at www.staffingindustry.com