is SOW management your next big opportunity?

46% of companies surveyed around the world are exploring ways to include statement of work talent into their managed service programs for contingent workers over the next two years.

Imagine achieving double-digit savings on one of the largest categories of your human capital-related costs.

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get SOW under control

Do you know the hidden cost of statement of work (SOW) engagements in your organization? Have you considered how you can achieve greater SOW spend control and visibility through your managed service program (MSP)?

While SOW can be complex to manage and administer, procurement leaders are getting ahead of the curve by including it as part of their contingent workforce management programs, supported by a managed service provider. With this approach, they get:

  • a holistic system and program dedicated to SOW procurement management
  • transaction visibility and analysis for strategic decision-making
  • external worker compliance controls and access management
  • contracting terms compliance and efficiencies
  • supplier performance capture and optimization
  • savings via competitive sourcing and improved budgetary controls
 

what is SOW management?

Employers are increasingly engaging statement of work contractors and suppliers to deliver specific outcomes and milestones. As a result, managing SOW engagements and suppliers can be especially complex.

 

Under an SOW management program, your solution provider may support processes associated with each stage of the SOW engagement — creating efficiencies, ensuring compliance, uncovering savings, and promoting high service quality. Under a managed SOW solution, your program is also supported by a vendor management system (VMS) that automates some or all of your SOW life cycle stages, offering full visibility.

 

the benefits of an SOW management solution

Implementing an SOW solution is an opportunity for your team to deliver greater value to your entire organization. Through this comprehensive solution, your contingent workforce practice will bring this elusive spend category to light and deliver the kind of value your C-suite leaders expect and demand from you. An SOW solution will provide:

complete service life cycle transparency.

You may already enjoy clear visibility of existing contingent spend through your existing MSP staffing solution. By adding SOW, you can achieve a complete view of all engaged service and contingent workers deployed on and offsite. Whether combined with an existing MSP program or as a stand alone solution, SOW management provides visibility into all aspects of the service life cycle. You can gain insights at both an individual engagement level and aggregated across your organization.

enhanced controls for greater savings.

Stay within scope and payment agreements with improved budgetary controls. The savings opportunities continue with the development and enforcement of rate cards within your VMS controls. Our market advisors provide insights on rates, sourcing and supplier utilization and ensure you’re using the best work arrangement to meet your needs. We facilitate competitive bidding as part of your MSP to assure access to the most qualified and cost-effective suppliers.

improved supplier performance.

An SOW management solution significantly improves supplier delivery accountability and performance by tracking project and milestone achievements, SLA performance, change order/budget adherence and more. Performance tracking allows buyers to quickly identify reliable suppliers, reduces the vetting process for future engagements and helps eliminate poor performers from consideration.

reduced risks through compliance enforcement.

As your MSP, we ensure suppliers and SOW contract agreements adhere to your company’s  defined success terms and delivery expectations. Talent onboarding and offboarding events are validated with timing linked to prevent unauthorized access to your systems and facilities networks. Detailed project tracking confirms that milestones are delivered accordingly and your suppliers comply with company policies, and deliver to stakeholder expectations and outcomes.

improved SOW sourcing.

Get proven sourcing support from procurement specialists who are experienced in your service categories. Your MSP provides process advisory or agent-lead support for sourcing and negotiations, bid forum administration and supplier rationalization. We support sourcing and negotiation efforts based on your needs — whether we lead on your behalf or enable others in your company — to get the most from your suppliers and VMS technology.

SOW and services procurement represent the biggest opportunity for the modern CWM program, as it is the largest area of contingent labor spend and volume within most organizations.

Ardent Partners, Statement of Work (SOW)/Services Management and the Future of Work
 

are you already engaging SOW suppliers?

If your organization is considering or already engaging SOW suppliers, a managed services approach may be the answer for you. Enterprise-wide SOW management requires resources that may already be in short supply. According to Staffing Industry Analysts, 74% of workforce solution managers say they spend more than half of their time on responsibilities related to contingent workforce management, up from just 16% in 2004.

Our SOW management solutions are designed to support your SOW strategy and administration across a range of activities, from sourcing to project set-up through to invoicing.

 

You can achieve double-digit savings on one of the largest categories of your human capital-related costs. Capture and report on these savings, and have visibility into all aspects of your organization’s service engagements through the insights and talent analytics delivered by your MSP.

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an SOW solution at work.

Centralizing SOW management not only gives you greater control and visibility; it can also help you improve service quality, mitigate security risks and realize savings. Find out how this technology leader saved 10 to 15% on each new SOW engagement by rolling management into its MSP.

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learn more about incorporating SOW into your MSP can lead to savings, compliance and transparency gains

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