Concurrent Session Strategy In house vs. Outsource Which Model is Best for You?

Transcription

1 THURS, OCT 9 3:15 PM ANTIGUA AB Concurrent Session Strategy In house vs. Outsource Which Model is Best for You? Moderator: Adrianne Nelson, Director, Global Services, Staffing Industry Analysts Panelists: John Dyer, ecam Supplier Liaison, AT&T Jennifer Hancock, Global Sub Category Manager, Staffing Services & Relocation, Schlumberger Art Knapp, VP, MSP Practice, Geometric Results Inc. Sponsored by: October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

2 DIGITAL SURVEYS In house vs. Outsource Which Model is Best for You? Don t forget to rate this session as you exit. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

3 AGENDA Insource vs Outsource Landscape Program Snapshots Defining and Arriving at Success Make vs Buy Geometric Results Inc. 3

4 Percent of buyers using different primary models, 2009 vs % 12% 21% 13% 23% 18% 47% 57% Source: Staffing Industry Analysts MSP Internally, VMS Internally, no VMS Master supplier Geometric Results Inc. 4

5 Percent of buyers primarily using selected primary model, as a function of buyer CW spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% <$20 mm Source: Staffing Industry Analysts $20 $49.9 mm $50 $99.9 mm $100 $199.9 mm $200 $399.9 mm $400 mm+ Master supplier 33% 9% 19% 0% 5% 6% Internally, no VMS 20% 18% 10% 10% 0% 6% Internally, VMS 7% 12% 24% 14% 14% 29% MSP 40% 61% 48% 76% 82% 59% MSP Internally, VMS Internally, no VMS Master supplier Geometric Results Inc. 5

6 AT&T PROGRAM OVERVIEW ecam Enterprise Contractor Acquisition and Management ecam was created in 2012 and replaced vendor who provided MSP support to legacy ATT ecam is the Internal MSP for ATT domestic staff supplemental needs focused on staff supplemental ecam also provides limited support for non staff supplemental (SOW) needs The team is comprised of 31 FTE and NPW team members in 6 states Top 6 states supported by ecam CA, WA, TX. GA, NJ and IL Filled positions in 2014 Recently implemented a VMS for domestic needs which replaced the legacy VMS, etemp The ecam team is made up of 2 groups 20 staffing managers who support the ATT hiring managers 11 staffing specialists/system administrators/supplier relations Geometric Results Inc. 6

7 SCHLUMBERGER PROGRAM OVERVIEW Schlumberger OpusConnect Staffing Service Global Program 1. Global Vendor Management System (VMS) 2. Local Managed Service Provider (MSP) 3. Program Contractor Count > 7700 USA Canada United Kingdom Norway Mexico Denmark Netherlands Geometric Results Inc. 7

8 PROGRAM CONSIDERATIONS Traditional Temporary Labor Statement of Work (SOW) Non Professional Services Professional Services Consultants Independent Contractors Domestic vs. Global Company Culture Technology VMS Bundled vs. Unbundled Integration with ERP, HRIS Geometric Results Inc. 8

9 PROGRAM VALUE Visibility Cost Savings Risk Mitigation Compliance Access to key information to drive business decisions with respect to the nonemployee workforce Drive negotiated rates; compete new positions/projects where applicable; manage to market rates Ensure suppliers and contractors meet corporate standardseven for those without direct billing With resource onboarding requirements, business rules, contractual terms, insurance Program Governance Quality Automation Supplier Management Ensure that strategies are in alignment with enterprise goals, drive stakeholder engagement Measure the effectiveness of the program, suppliers and resources; continual program improvement Creation of an efficient, integrated solution to manage all nonemployees Management of supplier marketplace; supplier performance reviews, supplier rationalization recommendations Geometric Results Inc. 9

10 IN SOURCE vs. OUT SOURCE BUSINESS CASE SUPPLY BASE Assess degree of supply base assessment, management and rationalization needed What politics need to be overcome regarding existing vendor relationships (especially in IT) Don t let supplier hesitation to a formalized program cloud the overall program decision. The supplier funded model is not new and better performing agencies do more business. RUN THE NUMBERS TO IN SOURCE Estimate total hours per month to manage a successful program by ALL potential constituents: HR, Admin, Purchasing, Finance and/or IT Compute number of FTE s and their salaries (fully burdened) to run program internally BE REALISTIC ABOUT WHAT CW MODEL TO CONSIDER Current/Projected Spend does total spend justify outsourcing to an MSP? Spent Mix By Category i.e. % Prof., Admin., Light Ind. A Preferred Vendor or Master Vendor model is not always a bad option; Hybrid MSP/Master Vendor model works well for organizations with large % of spend on Light Industrial temporary labor. Unique Industry Needs ex. How should an Insurer or Pharma address clinical roles in the program? Should SOW or Global spend be under same program? Launched at the same time? Geometric Results Inc. 10

11 Insource vs Outsource or Make vs Buy Do you have what it takes to run your own program? What is the true cost of implementation and service delivery? 2014 by Crain Communications Inc. All rights reserved. Geometric Results Inc. 11

12 QUESTIONS? Contact Tom Heene Global Account Executive Human Capital Solutions (MSP) Geometric Results Inc. (GRI is a wholly owned subsidiary of MSX International) Telephone: Geometric Results Inc. 12

13 DIGITAL SURVEYS In house vs. Outsource Which Model is Best for You? Don t forget to rate this session as you exit. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas