Tidal Wave of Change! Are you ready?
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1 North America Tidal Wave of Change! Are you ready? Bryan Peña, VP, Con'ngent Workforce Strategies and Research 26, June 2014 Confiden'al Report NOT for Distribu'on 2014 Crain Communica'ons Inc. All rights reserved.
2 The Global Advisor on Con2ngent Work Conferences Research/PublicaIons Advisory 2014 by Crain Communica'ons Inc. All rights reserved.
3 Over 700 client organizaions benefit from our internaional research services Who We Are 80% of the largest 50 U.S. staffing firms and 60% of the world s 25 largest staffing firms are corporate members Over 70 buyers of con'ngent labor are members of our CWS Council, represen'ng over $100 billion in annual con'ngent workforce spend Customers in more than 80 countries Founded in 1989 Acquired by Crain Communica'ons ($200M media conglomerate) in 2008 Headquartered in Mountain View, California and London, England 80+ years of industry and advisory service experience among execu've team 2014 by Crain Communica'ons Inc. All rights reserved.
4 Research 2014 by Crain Communica'ons Inc. All rights reserved.
5 Conferences Staffing Firms and Suppliers Corporate Buyers 2014 by Crain Communica'ons Inc. All rights reserved.
6 CWS Council Members (partial public list) DuPont 2014 by Crain Communica'ons Inc. All rights reserved.
7 2014 by Crain Communica'ons Inc. All rights reserved.
8 What are your current percepions? or or
9 The answer is or
10 TacIcal Problems to Strategic SoluIons
11 Before we get started by Crain Communica'ons Inc. All rights reserved.
12 Not to be confused Applicant Tracking System (ATS) - A soeware applica'on that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their own website, as a way to agract candidates. The ATS solu'ons store these candidate data inside a database to enable effec've searching, filtering and rou'ng of applica'ons. Enterprise Resource Planning (ERP) Integrates internal and external management informa'on across an en're organiza'on, embracing finance/accoun'ng, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this ac'vity by way of an integrated soeware applica'on in order to facilitate the flow of informa'on between internal business func'ons as well as external connec'ons to outside stakeholders by Crain Communica'ons Inc. All rights reserved.
13 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 auc'ons PeopleNet at Ford Motor Company was the first true VMS, circa 1995 FieldGlass founded by current CEO Jai Shekhawat in 1999 $27.4 billion spend under management in 2012 Sold to SAP for $1 Billion $90 billion VMS spend under management by Crain Communica'ons Inc. All rights reserved.
14 VMS OpIons Own VMS Proprietary in- house built technology Third- party VMS Either directly from a VMS Vendor or via an MSP that u'lizes a VMS Other Technology Exis'ng Infrastructure(s) that provide VMS like func'onality but not robust enough to be classified as a VMS No Technology Paper, pdfs Spreadsheets
15 MSP Models Master Supplier Hybrid Vendor Neutral Internally Managed 2013 by Crain Communica'ons Inc. All rights reserved.
16 Vendor Neutral MSP 2013 by Crain Communica'ons Inc. All rights reserved.
17 Master Supplier 2013 by Crain Communica'ons Inc. All rights reserved.
18 Hybrid MSP 2013 by Crain Communica'ons Inc. All rights reserved.
19 One size doesn t always need to fit all by Crain Communica'ons Inc. All rights reserved.
20 2014 by Crain Communica'ons Inc. All rights reserved.
21 2013 by Crain Communica'ons Inc. All rights reserved. Known VMS/MSP OrganisaIons Company Accolo Acro Service Corp. Adecco Pontoon Adi' Advantage xpo Aerotek Agile 1 Alexander Mann Allegis Group Services AMN Healthcare Ariba Bartech Beeline Capita Resourcing CDI Clover Collabrus Consul (powered by ProcureStaff Technologies) ConIngent Workforce SoluIons Contract- Central Cross Country Staffing DCR Workforce de Poel dotstaff Elevated Resources Emptoris esize Fieldglass Gonzalez Hays HireGenics Impellam Group Home Market CH JP UK UK UK NL UK UK Company IQNavigator isymphony KellyOCG Lumesse MedAssets Workforce Solu'ons Medefis Morson MSX InternaIonal myflex NéIve VMS nextsource Peoplefluent PIXID Populus Group PRO Unlimited Provade Randstad Sourceright Resource Solu'ons Group RGBSI RINGO Rullion Solu'ons S3 Shiewise Skillstream Staff Management Superior Group/Work Nexus TAPFIN/Econometrix G People Volt ConsulIng Group Yoh Yurcor ZeroChaos Home Market UK UK NL FR NL UK UK UK NL While all of the these companies were invited to par'cipate in the VMS/MSP Landscape report, not all provided sufficient informa'on to be included in our analysis. Those that did par'cipate are in bold/yellow.
22 2014 by Crain Communica'ons Inc. All rights reserved.
23 21% growth in global VMS spend among paricipaing providers $88 billion 21% y/y growth $73 billion Source: 2013 SIA VMS/MSP Compe''ve Landscape Report 2013 by Crain Communica'ons Inc. All rights reserved.
24 Spend Under Management in VMS and MSP Growing at Around 20% Globally 2012 VMS Global Spend Managed = $88B 2012 MSP Global Spend Managed = $63B SOW Spend growing quickly, up 37% for VMS and 46% for MSP in 2012 vs Source: Staffing Industry Analysts 2013 VMS/MSP Compe''ve Landscape
25 Growth in SOW Ied to other trends in VMS Internally managed programs Mega- programs Geographical expansion 2013 by Crain Communica'ons Inc. All rights reserved.
26 2013 by Crain Communica'ons Inc. All rights reserved.
27 Internally managed programs SOW VMS Spend 2012/2011 Growth in Global VMS Spend 34% Total VMS 21% 23% 66% Own MSP 3% 2% Global Internally Managed Managed Service Provider 3rd Party MSP 23% 28% Temp/contract VMS Spend Internally Managed 29% 45% 34% 66% Internally Managed Managed Service Provider Source: 2013 SIA VMS/MSP Compe''ve Landscape Report 2013 by Crain Communica'ons Inc. All rights reserved.
28 Mix of MSP Spend by Country Largest 15 Markets U.S. U.K. India Canada France The Netherlands Australia Japan Germany Sweden Belgium China (ex. HK) Switzerland Spain Ireland Temp/Contract SOW Outsourced 0% 20% 40% 60% 80% 100%
29 VMS/MSP Spend by Geography VMS Spend Contract Staffing/ Outsourcing MSP Spend Outside 30% Outside 33% 70% Temporary Staffing 67% Outside Source: Staffing Industry Analysts: MSP/VMS Global Landscape Report, by Crain Communica'ons Inc. All rights reserved.
30 Total CW in the Netherlands TAW, 12,8 Independent contractors, 62,1 Other Temporaries, 37, by Crain Communica'ons Inc. All rights reserved.
31 Netherland MSP by 2012 Program Count Randstad Sourceright Adecco Pontoon TAPFIN KellyOCG IQNavigator G People Volt Consul'ng Group Hays ZeroChaos PRO Unlimited Allegis Group Services Agile by Crain Communica'ons Inc. All rights reserved.
32 Netherland VMS by 2012 Program Count Ne've VMS Fieldglass IQNavigator Beeline Provade Consol PRO Unlimited ZeroChaos Agile- 1 Hays by Crain Communica'ons Inc. All rights reserved.
33 2014 by Crain Communica'ons Inc. All rights reserved.
34 EvaluaIng VMS General CapabiliIes VMS 1 VMS 2 VMS 3 VMS 4 VMS 5 VMS 6 VMS 7 VMS 8 VMS 9 VMS 10 VMS!! VMS 12 VMS 13 VMS 14 VMS 15 VMS 16 VMS 17 VMS 18 VMS by Crain Communica'ons Inc. All rights reserved.
35 What s next? 2014 by Crain Communica'ons Inc. All rights reserved.
36 Buyers are changing.
37 Programs are evolving.
38 Decentralized Several suppliers Procurement done on an ad- hoc basis Management done internally Preferred suppliers SelecIve set of suppliers selected Contracts in place Service level agreements (SLA s) in place Master Vendor One supplier (possibly managing 2nd and 3rd Ier suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA s and process Managed Service Provider (MSP) ConIngent workforce spend under management One contact point Direct cost savings on bill rate/usage Customized SLA s and process Non- compliant spend eliminaion 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 eliminaion Increased total cost of ownership savings AddiIonal producivity and process savings High degree of value added services CW as a Strategic CompeIIve Advantage CW talent as business differeniator Management strategies move beyond tacical consideraions into strategic ones CombinaIon of muliple CW models to solve complex business problems. Technology crosses muliple plarorms in the enterprise Risks managed on a total enterprise basis with big picture focus on risks of acion and inacion
39 Need Timeline/Planning Horizon Integrated with Inputs Outputs Scenario Planning Approach OperaIonal Approach Strategic Approach Accurately forecast hiring and/or training needs Develop the best talent strategies for longer- term success Usually 12 months with a quarterly focususually 3 years or longer matches the organiza'onal matches the yearly business plan strategic plan Annual or quarterly financial/budge'ng process Strategic planning process Mostly internal data, some management Wide range of internal and external informa'on including decisions demographics, business strategies, global trends, etc. Staffing plans, skill gaps Human Resource/People Strategies Uses variables to explore different models of staffing ForecasIng Key focus Only part of the process Uses futuring techniques to ques'on current paradigms and explore alterna've futures SegmentaIon Focus Internal demand Internal and external, demand and supply are all segmented Skills Competencies may be audited or gathered at Strategic Capabili'es analyzed and gathered at the group an individual level level Performed by HR or staffing organiza'on with input from the Business, facilitated by HR business Focus Opera'onal Management Line and BU Managers Strategic Management Execu've and Board Aligns to Business Plan Strategic Plan Terms used Predict, Calculate Explore, Design
40 Three- year moving average trend in VMS use 2014 by Crain Communica'ons Inc. All rights reserved. Source: 2014 Contingent Buyer Survey
41 Three- year moving average trend in MSP use 2014 by Crain Communica'ons Inc. All rights reserved. Source: 2014 Contingent Buyer Survey
42 LegislaIon and RegulaIon May Be a Barrier to InnovaIon in CW Management Source: Staffing Industry Analysts: Into the Future: Contingent Labour Trends Audience Survey May 2013 N=39
43 CWS Council Members (partial public list) DuPont 2014 by Crain Communica'ons Inc. All rights reserved.
44 What are you working on in 2014? Addi'onal Deployments Of Exis'ng Models, Project Plans And Payroller Rfp Looking For A Solu'on That Can Handle Low- Timelines, New Savings Benchmarking - Con'ngent Worker Proper Classifica'on Con'nue To Bring Sow And Outsourcing Spend Into Tool Con'nued Global Expansion Expanding The Internal Cwm Program From 3 Segments To 7 Segments In The Enterprise. Gezng Our MSPs In Order, Branding The Program And Adding Sows IC Compliance Implementa'on Of Interna'onal Contract Labor Into Enterprise Processs And VMS More Fully U'lizing Our VMS Technology, And We Are Going To Tackle Onboarding Issues And Light Industrial Worker Challenges That We Have In Our Program More Sow. Strategic Planning. What Does Our Program Look Like 5 Years From Now. Movement Of Execu'on- oriented "Consul'ng" To Contract Labor MSP Program MSP Reviews, VMS Roll Out, And Poten'al Resourcing Rpo None At The Moment. One VMS Tool For All Con'ngent Labor Spend Europe One Program/Portal For All Con'ngent Labor Spend Europ end Payroll To High End, 1099, Corp To Corp. Supplier Op'miza'on Program To Track All Non- employee Resources, With Facility And/Or Asset Access Redeploy VMS, Supplier Consolida'on Restructuring Pricing Model From Rate Card To Mark Up. Trying To Engage Senior Leaders In Discussions About Centralizing Con'ngent Labor Company- wide (Instead Of Silos Of Con'ngent Labor) Review Market For It Service Providers ( Not Contractor) For Key Skills In Na. Review Sap Services In Europe And Design Op'mum Labor Mix. Review Labor Strategy In India. Rfp For VMS And MSP Sow (It And Non- it) Sow Implementa'on And Expansion Beyond It Supplier Ra'onaliza'on, Geographic Expansion, Sow Service Category Expansion China, Iden'ty Mgmt. - Japan VMS Implementa'on We Are In The Process Of Rolling IC Compliance Into Our Current Program. (Currently We Only Have Temp Agency Workers In Our Program.) 2014 by Crain Communica'ons Inc. All rights reserved.
45 What s Next? From Supply Chain to Human Cloud Models Maturing Online Staffing Platform Models Emerging Other Human Cloud Models Degree of value chain digitization / platform integration VMS Global Buyers Job Boards Social Nets Platform Mature Staffing Supply Chain Models Global Contingents Crowdsourcing Microtasks, WaaS Platforms From Supply Chain to Human Cloud Models A Buyer/Client Suppliers Contingents Very Mature Direct Traditional Employment Models Degree of work contingency/ decomposition
46 ConIngent Workforce Management Becoming a Full Time Profession Source: Staffing Industry Analysts 2013 NAM Con'ngent Buyers Survey
47 A SIGN OF EXCELLENCE Confiden'al and Proprietary by Crain Communica'ons Inc. All rights reserved.
48 August th Atlanta, GA
49 6-7 October, 2014 October 6-9, 2014 Las Vegas NV The Mirage Hotel & Casino 8-9 October, 2014 All CWS Council seatholders will be pre- registered for both events. October 6, :30am Council Mee'ng Contact us with any subs'tu'ons/addi'onal agendees at a discount. On July 14, 2014 you will receive confirma'on and hotel informa'on Book your hotel and flight early Please contact Member Services at before July 14 if you can not agend.
50 Thank you & The Global Advisor on Con2ngent Work Conferences Research/PublicaIons Advisory QuesIons Bryan Peña, VP, Con'ngent Workforce Strategies and Research Phone: by Crain Communica'ons Inc. All rights reserved.
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