Demystifying The Marketing on Vendor Neutrality
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Contract Workforce & Talent Exchange Demystifying the Marketing on Vendor Neutrality
description
There has been a growing trend of having procurement and sourcing department oversight and/or involvement in the due diligence process of reviewing and selecting Recruitment Process Outsourcing companies. This presentation will focus on the importance for organizations to still involve key stakeholders and business users of recruitment process oursourcing versus simply “turning over the keys” to procurement, possibly resulting in a price-only focused process.
Transcript of Demystifying The Marketing on Vendor Neutrality
Contract Workforce & Talent Exchange
Demystifying the Marketing onVendor Neutrality
Today’s Presenters
JEFF NUGENT, Founder & Managing Director
TED WEYN, Co-Founder & Managing Partner
Agenda• Overview: What is an MSP?• MSP Programs History & Evolution• MSP Programs
– Structure– Design– Pricing
• What is Vendor Neutrality?– Definition– The Marketing of Vendor Neutrality
• Keys to Success– What to Watch For– How to Drive Results
What is an MSP?
• Managed Service Providers take on responsibility for outsourced management of all facets of contingent labour program, including day-to-day operations including hiring, on-boarding, administration and off-boarding activities.
What is Vendor Neutrality?
• A vendor service that is not proprietary (e.g. not privately owned and controlled) by one of the vendors. Vendor neutrality can be of concern, especially in the enterprise where there is a need for processes to integrate with others vendors or processes. The presumed advantage of choosing a vendor-neutral model is that the best solution can be chosen at any time, and without conflict of interest.
Staffing Industry History:Managed Services
1970s1970s – American Express originally introduced the concept of Managed Services through their Travel Services Division.
1980s1980s – “On-site” programs grew into Vendor on Premise Programs and were adopted by the staffing industry.
1990s1990s – Vendor on Premise Programs migrated into full departmental/category outsourcing.
2000s2000s – Vendor Management System (VMS) Technologies emerged for Staffing.
2003-20052003-2005 – Refined MSP , VMS, ICES
20102010 – Programs are expanding into broader indirect goods and services with outsourced models evolving beyond typical MSP SOW, Legal, Marketing, Printing.
Future of Managed Services:Business Process as a Service (BPaaS)
• A combination of Business Process Outsourcing (BPO) and Software asa Service (SaaS)
• Changes focuses from “Resources to Results”
• Provides total ownership to one outsource entity• Provides a process vehicle for greater scalability
Best In Class Solution Utilization
Courtesy of: Complexities of the Contingent Labour Umbrella (June 2010), Aberdeen Group
Enterprise CWM Program Model
CLIENT
+
ICES & Payrolling Vendor
Vendor Management Software (VMS)
Independent Contractors & Non Preferred Vendors
Managed Service Provider (MSP)
Vendor1
Vendor2
Vendor3
Pricing
MSP 2-5%VMS 1-2%Vendor 25%
Percentage of Spend / Invoice Margin Breakdown
Note: MSP/VMS fee is paid by the Vendors
Alternative Pricing Models
• Flat Management Fee
• Incentive % Share of Savings
• KPI / SLA Incentive
LinkedIn Poll Results
How it Works: The Marketing of Vendor Neutrality
STAFFING MSP VMS PAYROLL
Companies provide various solutions which are branded differently to appear neutral.
Key Components When Selecting an MSP Vendor Neutrality
• Does the organization have the depth of experience to provide the service?
• What is the organization’s core business?– Staffing?– Software?– Services?
• What is the structure of the commercial arrangements
• Are the KPI’s reasonable• Do the KPI’s ensure a “level playing field”
Key Components When Managing MSP
Keep the fox out of the henhouse!
Benefits to Vendor Neutrality
• Focus on program performance without fulfillment distractions or conflicts
• Internal staffing program goals and strategies fully aligned and supported
• Program support not tied to staffing industry economic cycles
• Better overall supplier relationships• Protection of human capital assets
Keys to Success
Ensure fill ratios and to keep users in the system
Flexibility to expand and contract with varying labour market and consumption needs
Period Review of Market Rates
Keys to Success
Provide visibility and tracking Flexibility to meet client
requirements and changing needs
Keys to Success
No association with a staffing company or vendor management application
Contracted to ensure service levels and savings Rewarded not only on percentage of spend
Manage change management and communications initiatives
Other Keys to Success
Policy DevelopmentExecutive endorsement and support Identification of a neutral cost effective
billing and payroll firm • Firm not in the business of staffing • Protects your company’s IP assets
Thank You!
