Best Practices in Managing & Analyzing Services Procurement Spend

Best Practices in Managing and AnalyzingServices Procurement SpendDecember 15, 2011Transforming the Way theWorld Acquires Talent

Overview • Introductions • What is Services Procurement • Evolution of SOW Management • Best Practices in Managing & Analyzing Spend

Human Capital Solutions Experts• 71 current programs; 57 MSP, 14 RPO Recent Accolades HRO Today 2011 MSP Baker’s Dozen• Global Footprint; servicing 19 countries #1 in Quality of Service• SAS 70 Type II audit performed General Motors annually Supplier of the Year, 2002 and 2010 Microsoft• In excess of $2.5B in MSP spend Global Premier Vendor, 2011 under contract Diversity Excellence, 2010 • Founded in 1983 • $6.4B revenue, 2010 • 110 consecutive quarters of profitability Parent Company • $600M+ in working capital

Today’s Speakers Paul Gartland, Director-Services Procurement 17 years of experience in staffing, Managed Service Programs and Services Procurement. Paul consults with companies in how they are managing their Services Procurement/SOW business and helps determine if there is a better solution to their current process. Prior to his role as Director of Services Procurement he was the Program Director for one of AGS largest financial services clients leading a full service MSP that provides both staff augmentation and Services Procurement management for the client. Paul managed 18 dedicated program office staff members responsible for managing over $500M in spend spanning both staff augmentation and SOW services. Tracey Klein, Executive Director-AGS Consulting A consulting and implementations thought leader in the industry for over 20 years. Tracey provides global companies with new approaches to the internal and external management of their Workforce Management Solutions. Tracey is known as a turnaround manager with the proven ability to assess a variety of situations and implement process improvements to achieve increased service. Tracey runs the Consulting practice line at AGS providing services in Workforce Optimization, Workforce Planning, Business Analytics, HR Consulting and Employer Branding.

What Is Services Procurement Spend? Contracted Resource Non- Services resource Services Hard Goods Indirect Spend Categories

What Is Services Procurement?Services Procurement- contingent Statementworkforce providing services on an arrangement of Workother than just time and expense and notmanaged day-to-day by a client employee Project BPO Based Agreement Example Arrangements: Services Offshore Contract Outsourced Vendor

Polling Question #1

SOW- An Emerging Trend Evolution of Contingent Labor Management

Evolution Of CW Management As the industry has matured, best-in class companies are moving into more complex areas of contingent workforce management.Aberdeen’s Competitive Framework Are SOW consultants incorporated into Source: Staffing your program? Industry In place today - 39% Analysts, 2011 Likely to be seriously explored in next 2 years – 49% Seven Core Capabilities of an Expanded Program 1. Req to Payment – End to End Workflow w/ granular SOW functionality 2. Decision Support – Guide Managers to the Right Engagement Type 3. Reporting & Monitoring Across all Worker Types: Transparency and Control 4. Worker Identity Management & Security Controls: Compliance 5. Integration Points Source: 6. Change Management & Executive Sponsorship Aberdeen Group, April 7. Supplier Adoption 2011

Market Overview-SOWContingent Labor Spend Areas with High Visibility Source: May 2011 Contingent Labor Management Report by

Market Overview-SOWBest-in-Class Solution Utilization Source: May 2011 Contingent Labor Management Report by

ManagingServices Procurement

Polling Question #2

Contractor Vs. Consultant Review Contractor Consultant • Person • Firm • Resumes • Request for Proposal • Staff augmentation • Specialized expertise • Hourly • Milestone • Business unit • Consulting firm accountable accountable • Customer controls • Customer defines

Polling Question #3

Efficiencies Gained By ManagementProcess Efficiencies TransparencyReporting and AnalyticsControls and Compliance

Efficiencies Gained By Management Hiring/Buyer Immediate Management Manager • Visibility • Point-of- • Compliance • Transformation contact • Uniformity • Consolidation • Timeliness • Metrics • Standardized • Cycle times • Forecasting • Process • Productivity • Data • Cycle times • Standardized • Audit • Billing • Governance • Visibility • Visibility • Rate cards

Best Practices Managing/Analyzing SOW Centralized Program Technology Process Standardization Utilization of Analytics

Polling Question #4

QuestionsFor more information contact…Paul GartlandDirector, Services Procurementpgartlan@allegisgroupservices.com248.240.6919Tracey KleinExecutive Director, Consultingtklein@allegisgroupservices.com404.929.6680Visit our website for whitepapers, blogwww.allegisgroupservices.com

Best Practices in Managing & Analyzing Services Procurement Spend

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