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Confidential Report – NOT for Distribution | ©2014 by Crain Communications Inc. All rights reserved.

December 18, 201410 am PT/ 1 pm ET

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Presented by:

Kristen McArdle, Director of Professional Services, Brightfield Strategies

Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts

Colleen Tiner, SVP, Product Management, Beeline

Ben Walker, Vice President, Operations, Brightfield Strategies

The 2014 VMS/MSP Landscape: the state of the industry sponsored by

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©2014 by Crain Communications Inc. All rights reserved.

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Thank you to our sponsor…

Kristen McArdle, Director of Professional Services, Brightfield Strategies

Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts

Colleen Tiner, SVP, Product Management, Beeline

Ben Walker, Vice President, Operations, Brightfield Strategies


Our speakers today…

Before we get started…..


Not to be confused…


Applicant Tracking System (ATS) ‐ A software application that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their ownwebsite, as a way to attract candidates. The ATS solutions store these candidate data inside a database to enable effective searching, filtering and routing of applications.

Enterprise Resource Planning (ERP) — Integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this activity by way of an integrated software application in order to facilitate the flow of information between internal business functions as well as external connections to outside stakeholders..

A brief History of VMS• Vendor Management Systems emerged in the late 80s

early 90s from the VOP – Vendor On Premises concept• With the advent of the internet more purchasing spend

was managed through e‐business and online auctions• PeopleNet at Ford Motor Company was the first true

VMS, circa 1995

• $110 Billion VMS spend under management 2013• $85 Billion MSP spend under management in 2013


VMS Options• Own VMS

– Proprietary in‐house built technology• Third‐party VMS

– Either directly from a VMS Vendor or via an MSP that utilizes a VMS

• Other Technology– Existing Infrastructure(s) that provide VMS like functionality but not robust enough to be classified as a VMS

• No Technology– Paper, pdfs– Spreadsheets


MSP Models

• Master Supplier• Hybrid• Vendor Neutral• Internally Managed


Vendor Neutral MSP


Master Supplier


Hybrid MSP


A POLL.But first…


Which of the following describes your program?

• No VMS technology in place• Planning to implement in next 2 years• Have a VMS Technology in place 1 to 3 years• Have a VMS Technology in place 3+ years• Have VMS in place but planning on switching/removing



Source: 2014 Buyers Survey

Three‐year moving average trend in VMS use

Source: 2014 Contingent Buyer Survey


Three‐year moving average trend in MSP use

Source: 2014 Contingent Buyer Survey


Temp/contract MSP spend by sourcing model

66%11%

23%

Vendor‐neutral Hybrid Master supplier

41%

18%

41%

Vendor‐neutral Hybrid Master supplier

2013 Temp/Contract MSP Spend by Sourcing Model ‐ US 2013 Temp/Contract MSP Spend by Sourcing Model – Outside US

Source: SIA 2014 VMS & MSP Competitive Landscape Report

Percent of all buyers noting use of VMS and MSP (3 Yr. Moving Avg.)

Source: SIA 2014 Contingent Buyers Survey – North America

Year‐over‐year growth in global VMS and MSP spend

0%

10%

20%

30%

40%

50%

60%

70%

80%

2006 2007 2008 2009 2010 2011 2012 2013 2014

VMS

MSP

How can we explain this seeming discrepancy?

22% 21%23%

29%

18% 19%

2011 2012 2013

VMS MSPSource: SIA 2014 VMS & MSP Competitive Landscape Report


Majority of growth is from increased spend per client

22% 21%23%

29%

18% 19%

2011 2012 2013

VMS MSP


8% growth in number of clients

Percent of all buyers noting use of VMS/MSP (3 Yr. Moving Avg.)

Source: SIA 2014 Contingent Buyers Survey – North America


0%

10%

20%

30%

40%

50%

60%

70%

80%

2006 2007 2008 2009 2010 2011 2012 2013 2014

VMS

MSP

Different geographic scope

22% 21%23%

29%

18% 19%

2011 2012 2013

VMS MSPSource: SIA 2014 VMS & MSP Competitive Landscape Report

2013/2012 growth in MSP clients in the U.S.

4%Source: SIA 2014 VMS & MSP Competitive Landscape Report

Increased spend per program driven by…

40%

74%

10%

19%

104%

61%

13%

19%

Outsourced Services

SOW

Temp/Contract

Total MSP

Global

U.S.


2013/2012 growth in MSP spend by work arrangement

Increased spend per program driven by…

2012/2013 Growth in MSP Spend by Country

0% 20% 40% 60% 80% 100%

Germany

Belgium

Canada

Japan

Spain

India

US

UK

Netherlands

Ireland

France

Australia

+86%

+44%

+28%

+19%

+11%

+7%

+3%

+2%

+40%

+32%

+8%

+34%

Source: 2014 VMS/MSP Landscape

One size doesn’t always need to fit all…..


Mix of 2013 MSP spend by country

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ireland

China

Spain

Japan

Switzerland

India

Sweden

Australia

Belgium

France

The Netherlands

Canada

Germany

UK

US

Temp/Contract SOW/Outsourced


A POLL.But one more….


Which of the following describes your VMS objectives?

• Cost Savings• Quality of talent• Control Risk• Increase speed to hire/increase efficiency


VMS AND MSP DIFFERENTIATORS REPORT


Objectives of the Differentiators Report


• Understand provider capabilities within specific scenarios as well as general capabilities

• Gain insight into new trends and innovations

VMS Provider Participation


0 50 100 150 200 250 300 350

Fieldglass

PeopleFluent

Beeline

IQN

Netive

PRO Unlimited

Provade

Agile 1

3 Story Software

Work Nexus

Tapfin

iSymphony

CDI

MSXi

Safe Computing

# Unique Clients

Axis Title

VMS Providers by Number of Clients

20142013

Differentiation is the goal ‐ VMS

• Driving towards parity on key VMS features• Features excluded from 2014:

– User specific configurations (fields, permissions, approval routing)

– Dynamic notifications– Use of templates for jobs


New Capabilities Questions ‐ VMS

• Industrial Capabilities: shift differentials, timecards supporting multi‐day shifts

• Reporting/Analytics: dashboards, export capabilities, graphical representation

• SOW: evaluations, negotiation, expense configuration

• Global: worker tracking, currency exchange, taxes, statutory reductions


Configuration versus Customization

• Two primary approaches to design:– Product‐based solution (Configure)

– Custom software solution (Customized)


Benefits and DrawbacksModel Benefits DrawbacksProduct‐based Solution

New features automatically available to customer base

Development efforts focus on overall product roadmap

Greater breadth and depth of functionality across platform

Product development may be guided by industry direction and opportunity

Buyer or MSP may be empowered to make configuration changes at an administrative level

Limitations on customer‐specific enhancements

Comprehensive UAT across clients required prior to all releases

Custom Software Development Solution

Technology solution developed to meet customer needs at a greater level of specificity or alignment

Focused on individual buyer needs and satisfaction

Buyers may have less involvement in the overall system administration of the VMS

Buyers are on their own timeline for code changes, not tied to the entire product

Development efforts focused on individual buyers, limiting overall product roadmap bandwidth

Product development guided by client needs, not industry direction and new features not applied to all customer solutions

Minor changes such as new user defined fields (UDFs) may require coding


Worker Tracking

• Key drivers– Expanding globally– Low volume areas– Need for visibility ‐ SOW– Controls related to systems and facilities access

• Solution capabilities vary widely


Areas of VMS Innovation• Mobile functionality for tablets and phones through provider‐specific apps for iOS and

Android• Use of social media to reach candidates directly and establish client‐specific talent pools,

often linked directly into the client‐specific VMS database• Analytics and dashboard capabilities built directly into the VMS to allow for improved

access to real‐time, actionable data for all users• Improved rate management functionality that allows for advanced flexibility related to bill

rate and pay rate structures, provides complex taxation capabilities and enables clients to meet statutory requirements globally

• Features to support program management activities for MSPs or internal PMOs such as program management dashboards, task lists and end user chat features

• RFx/SOW enhancements such as enhanced in‐tool negotiation capabilities, documentation publication features, improved configurability and enhanced performance information

• Ease of integration through integration self‐service tools for the buyers with established templates and processes

• Improved usability via new or enhanced User Interfaces


MSP Provider Participation


0 50 100 150 200 250 300 350 400 450

iSymphony

Strategic Staffing Solutions

CDI

Yoh

Fircroft

Bartech

Hays

GRI

Superior Group

Agile1

AGS

PRO Unlimited

KellyOCG

Impellam

Tapfin

MSP Providers by Number of Clients

2014

2013

New Services Questions ‐MSP

• Industrial supplier scorecards• Supplier management for SOW‐based work• Global support services• Program governance and planning• Reporting and analytics


Areas of MSP Innovation


Less true innovation, or even service differentiation, within the MSP space than the VMS space. A few noteworthy examples include:

• Training on specialized topics for clients• Use of social media to attract candidates• Data analytics capabilities• Market analysis to drive work location decisions• Global mobility—finding candidates to support remote locations


Thank you to our sponsor…


Next webinar January 21, 2015 10 am PT:

Total Talent Management: 2015 ‐ The Journey Continues

• Copies of the slides and a link to the audio recording will be distributed to all attendees within 24 hours following the webinar

• A replay of the webinar will be available for CWS Council Members at www.staffingindustry.com

Slides and Audio

Thank You!


the 2014 vms/msp landscape: the state of the industry ... › content › download › ...applicant...

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