The MSP/RPO/VMS Landscape Series€¦ · ©2017 by Crain Communications Inc. All rights reserved....
Transcript of The MSP/RPO/VMS Landscape Series€¦ · ©2017 by Crain Communications Inc. All rights reserved....
©2017byCrainCommunicationsInc.Allrightsreserved.
ConcurrentSessionTheMSP/RPO/VMSLandscapeSeries
Speakers:§ StephenClancy,Director,ContingentWorkforceStrategies,Knowledge&Research,CCWP,StaffingIndustryAnalysts
§ ElizabethRennie,GlobalWorkforceSolutionsResearchDirector,CCWP,StaffingIndustryAnalysts
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4
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68%
65%
63%
63%
61%
60%
59%
58%
53%
50%
45%
40%
37%
36%
34%
33%
24%
15%
14%
26%
30%
15%
21%
25%
12%
36%
24%
29%
40%
35%
25%
50%
28%
53%
22%
17%
36%
50%
VMS
Consolidationofsuppliers
Substantialuseofoffshoring
MSP
Suppliertiering
Useofdomesticoutsourcing
Analytics- benchmarkingbill/payrates
VendorforICcompliance
Encouragediversitysuppliers
SOWinCWprogram
Tryingoutnewstaffingsuppliers
Mastersupplier
GlobalmanagementofCW
RPO
StrategyplanningincludesCW
Directsourcing
Internallymanagedprogram
ContingentRPO
Totaltalentacquisition
Inplacetoday Exploringwithin2years
“Whichofthefollowingarecurrentlyinplaceinyourorganisation,orarelikelytobeseriouslyexploredwithintwoyears?
N = 107
Source:WFSolutionsBuyersSurvey2016- Europe- Trendsinsuppliermanagementstrategies
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WorkforceSolutionModels
MSPMSPEvolution
Maturitytowardsoutcomes
RPOEvolution
Maturitytowardsoutcomes
Decentralised
Preferredsupplier
MasterVendor
TotalTalentAcquisition
Decentralised
AgencypreferredorIn-house
RPO
FLEXIBILITYvsSTABILITY
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Terminology
Freetodownloadfromwww.staffingindustry.com
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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Nowit’syourturn…
Whatistheannualspendgoingthroughyourprogramme?
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VMSGlobalMarketSpendbyRegion2015(billions)
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
2014 2015
VMSMarketSizeandGrowth
Growth+20% +15% +30% +59%
Global N.America Europe ROW
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Growth+13% +11% +14% +20%
Global N.America Europe ROW
MSPGlobalMarketSpendbyRegion2015(billions)MSPMarketSize&Growth
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$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Global NorthAmerica EMEA APAC LATAM2015Revenue(USD$m) $3,695 $1,623 $1,137 $830 $106ShareofGlobalRevenue 100% 44% 31% 22% 3%
RPOMarketSize&Growth
GlobalAnnualGrowth+15%
RPOGlobalMarketRevenuebyRegion2015(billions)
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What’syournumber?
Thetotalannualspendgoingthroughyourcontingentworkforceprogrammesis…
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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OccupationBreakdownVMSMarketbyOccupationalSkillCategory (%)2015
27%
23% 11%
9%
8%
11% 4%
InformationTechnology
Industrial
Office/clerical
Finance&Accounting
OtherProfessional
Engineering&Design
Healthcare
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Nowit’syourturn…
WhatispercentageofIToccupationalspendgoingthroughyourprogramme?
a.0- 10%b.10- 20%c.20- 30%d.30- 40%e.Over40%
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ContingentWorkerProgrammeTrends
1.0 3.02.0WAVES:
FOCUS:SourcingLeveragingScale SourcingthroughNeutralModels SourcingforWork
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TopDriversofVMSGrowthOrganizationalChallenges VMSFocus
SpeedofChange
IncreasingCosts
IncreasinglyComplexOperationsandSupplierRelationships
MinimisingRisk
ImprovedSupplierManagement&OptimizationandProcessEfficiency
StrategicSourcingInsights
BetterDecisionswithSupplierandRequisitionOptimization
On/OffBoardingwithWorkerClassificationandRateVisibility
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VMSGlobalMarketSpendWorkArrangement2015(billions)
$36.80
$83.26
$0 $20 $40 $60 $80 $100
StatementofWork
TemporaryEmployees&IndependentContractors
MostPopularModels
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TypesofVMSandTypesofVendors
StaffingServicesAffiliations
PurePlay
SAPFieldglass(SAP)
PeopleFluent
PROUnlimited*
Ramco*
PrideOne*
Beeline
3StorySoftware(Hays)
DCRWorkforce
Medefis(AMN)
Brainnet*
Shiftwise(AMN)
Agile1*
WorkNexus(SuperiorGroup)
Econometrix(Manpower)
Nétive
Lumesse
DirectSkills
PIXIDShortlist
Connecting-Expertise(USGPeople)
Provade(Oracle)
iSymphony*
• Nameofaffiliationcompanyisthesame
ERPAffiliations
XRM(Acro)
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17%
42%
41%
Vendor'sOwnMSPInternalServiceProgramThirdPartyMSP
HowtoService?- BuildorBuy?VMSMarketbyMSPServiceModel(%)2015
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What’syournumber?
ThepercentageofIToccupationalspendgoingthroughyourprogrammesis
a.0- 10%b.10- 20%c.20- 30%d.30- 40%e.Over40%
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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MostPopularModels
$1.14$19.90
$0.19$10.18
$20.36$48.28
$0 $10 $20 $30 $40 $50
OutsourcedServiceManagementStatementofWork
ContingentRPOHybrid
MasterSupplierMSPVendorNeutral
MSPGlobalMarketSpendWorkArrangementandSourcingModel2015(billions)
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Nowit’syourturn…
IsStatementofWorkspendinyourprogramme?
a.Growingb.Fairlystablec.Nonexistentorreducing
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TopDriversofMSPGrowth
SpeedofChangeandLargeRamp-upsofWorkerVolumes
UnmanagedcostsRelatingtoSignificantSpend
IncreasinglyComplexOperations
MinimisingRisk
SourcingOptimizationtosupportDiverseneeds&BusinessProcessStreamlining
CostControl
AgilitytoSupportPeaksandTroughsofCWneeds
On/offBoardingwithCWAuditsandRateComplianceVisibility
OrganizationalChallenges MSPFocus
DriveforCostEfficienciesandImprovedPerformance
CloserSupplierManagementwithAccesstoBenchmarkRates
SourcingHardtoFindTalent DevelopingNewSourcingModels
ManagingVMSTechnologyandIntegrations
ServiceandTechnologySupportacrosstheCWDelivery
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TypesofMSPandTypesofVendors
IndustryFocus
SupplyChainFocus
PROUnlimited
Volt
Brainnet
Impellam
Hays
AMN
SuperiorGroup(WorkNexus)
CapitaAerotek
GRI
Solvus
iSymphony
BlendedVMS/MSPFocus
Agile1
Fircroft
DirectSourcingFocus
KellyOCG
Singular
Parallon
AGS
Yoh
RevTek
Mid-MarketFocus
SSSGibbsS3
RTM ContingentRPOAMS
MasterVendor
TAPFIN
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BuyerProfile
68%
15%
11% 6%
Over10,000Employees(FTE)5,000-9,000Employees(FTE)2,000-4,999Employees(FTE)Lessthan2,000Employees(FTE)
40%
12% 25%
19%
4%
Lessthan$50m$50-$100m$100-$300m$300-$1,000mOver$1,000m
MSPSpendbyBuyerFTEHeadcountSizeandBuyerSpendSize(%)
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What’syournumber?
IsStatementofWorkspendinyourprogrammegrowing?
a.Growingb.Fairlystablec.Nonexistentorreducing
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Predictions1. Availabilityofanalyticsacrossdifferentworkertypes(Tempvs
permvsICetc.)withgreaterdataaggregationacrossmultipleclientbasesforbenchmarking
2. Greaterintegration acrossdifferentplatforms3. Supplyanddemand beingembeddedinworkforceplanning
programmes4. MarketplacesdevelopedacrossSaaSplatformstostreamline
processes5. Directsourcingfunctionalityalongsidethesupplymanagement
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Predictions6. Talentpoolsforcontingentworkerstoincreasewithimproved
marketing7. Functionalitytosupportemployeereferralsand
recommendations8. Mobileappsforworkersandmanagerstosupportentryofdata
andapprovalsaswellasincreaseduseofautomatedinvoicesandelectronicinvoices
9. Programmegrowthinexistingclients10.RFXcapability
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Global NorthAmerica EMEA APAC LATAM2015Revenue(USD$m) $3,695 $1,623 $1,137 $830 $106ShareofGlobalRevenue 100% 44% 31% 22% 3%
RPOMarketSize&Growth
GlobalAnnualGrowth+15%
RPOGlobalMarketRevenuebyRegion2015(billions)
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Nowit’syourturn
HowmanyoftheaudienceuseanRPO?
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RPOKeyTrends
Source:RPOMarketDevelopments2016
1• TheRiseof“Sourcers”
2• TheCandidateisKing
3• DigitalPersonalization&Matching
4• StrategicTalentManagement
5• TotalTalentAcquisition
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RPOMarketDevelopmentsRPOBuyerAdoption
Source:EuropeanWFSolutionsBuyersSurvey2016:Trendsinsuppliermanagementstrategies
RPOInPlaceToday Exploringwithin 2years Not Considering36% 28% 36%
Source:EuropeanWFSolutionsBuyersSurvey
2016:RecruitmentProcessOutsourcing
14% 18% 21% 21%
39% 54%
64% 68%
ImprovingworkforceanalyticsImprovingworkforceplanning
ImprovinglegalcomplianceMeetingtalentneedsofashortterm…
ImprovingqualityofhiresMakinghiringmorescalable
ReducingcostsImprovingrecruitmentefficiency
N=28
RPODriverstoAdoption
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HighLevelServicesModels
12% 31%
52% 5%
0% 10% 20% 30% 40% 50% 60%
Source&SelectOnlySource,Select&Contract
Source,Select,Contract&OnboardSource,Select,Contract,Onboard&ExitInterviews
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DetailedRPOServicesAdoptionAdoptionLevelsacrosstheRPOClientBase
2% 10%
24% 38% 39% 43% 43%
50% 56%
60% 72%
87% 90%
GamificationServices
VideoCV's,VideoInterviews
StrategicWorkforcePlanning
InterviewingPerformedbyRPOProvider
IntegratedWorkforcePlanning(Contingent&Permanent)
VendorManagement(whereusingsuppliers/agencies)
CareerSitedevelopment&brandingservices
Assessments&Testing
DiversityProgramSupport
Onboarding
InternalMoves
ExternalLaborMarketData&BenchmarkService
TalentPoolManagement&Reporting
Source:RPOMarketDevelopments2016
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RPOGeographicScopeofRPOProgrammes
53% 24%
20%
SinglecountryclientscopeMulticountryclientscope(uptotworegions)Servicingtheclientin3ormoreregions
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What’syournumber?
HowmanyoftheaudienceuseanRPO?
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AGENDA
1. MarketOverview
2. VendorManagementSystemMarket
3. ManagedServiceProgrammesMarket
4. RecruitmentProcessOutsourcingMarket
5. TotalTalentMarket
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RPOServiceBlendingwithHROandMSP
86%
9% 5%
RPOOnlyServiceScopeRPOServicesBlendedwithMSPServicesRPOServiceBlendedwithHROServices
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Nowit’syourturn…
HowmanyarealreadyblendingRPOandMSPmodels?
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DrivenbyOrganizationalChallenges
How can I best integrate contingent and other non-employed workers with my employed workforce?
Who is doing work on behalf of my organization and to what reputational and legal risks does that expose me?
What training and career paths do I need to develop for workers of all types?
What is the real cost of these various workers and what are the optimal pay and benefits?
Which types of workers do I need and in what ratio in order to maximize productivity/cost-effectiveness?
How can I motivate and engage all those doing work on behalf of my organization (employed and non-employed)?
How can I best address skills shortages?
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WorkforceSolutions
22%78%
EmployedWorkforceContingentWorkforce
Source:SIA2016CWBuyersSurveyconsolidatedacrossregions
AverageBreakdownofWorkforcebetweenEmployedandContingentWorkforce
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WorkforceSolutions
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What’syournumber?
HowmanyarealreadyblendingRPOandMSPmodels?
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VMSMarketDevelopments
MSPMarketDevelopments
TotalTalentAcquisitionMarket
Part1:Drivers,Innovations&GeographicalCapability
Part2:MarketSizing
Part3:MarketDifferentiators
Part1:Drivers,Innovations&GeographicalCapability
Part2:MarketSizing
Part3:MarketDifferentiators
RPOMarketDevelopments
Wheretogetmore…..
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ThankYou!
Questions?
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TwoEasyWaystoGiveFeedback
RatesessionsontheConferenceCommunity (allsessions)
FillouttheEvaluationCardonyourchair(concurrentsessions)
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