The document discusses the services procurement framework with a focus on maximizing value through effective management of statement of work (SOW) and external workforce. It highlights market trends, benefits, and critical success factors for managing SOW engagements, emphasizing the use of automation and robust supplier management. Key drivers of savings and efficiency gains from services procurement include rate rationalization, competitive bidding, and enhanced spend visibility.

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Understanding the Services Procurement
Framework for Maximum Value
Mikael Lindmark – SVP EMEA, Fieldglass
Sarah Chaudhari – Sales Engineer, Fieldglass

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Fieldglass Overview
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
Industry Leader
Leading vendor for contingent and
SOW/project capabilities according to
Forrester Wave 2014 report
Culture of Partnership
15+ years experience
#1 in customer satisfaction for three
consecutive years (SIA)
Global
35% of deployments outside U.S.
Deployed in 100+ countries and
18 languages
Largest Customer Base
300+ companies
$25B in global spend
Largest data set for benchmarking
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External Workforce Management Platform
Identity Access Management
Compliance
Core HR Systems for Internal Workforce
Agency
Workers
Plant
Maintenance
Worker Profile
Management
SOW-
based
Services
Freelancers
Recurring
Services
Outsourced
Services
EXTERNAL
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Global Market Trends in SOW-based Services
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
Emerging category for delivering savings and efficiencies
* SOW includes global spend on consulting & offshore services. Source: Staffing Industry Analysts.
Avg Temp:SOW Spend Ratio
Temp SOW
3x SOW spend compared to temp
70% Addressable SOW spend in Europe
& N. America
20% Annual growth in managed
SOW spend
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• Automation of processes throughout
the procurement lifecycle
simplifies the management
of projects and services
• Compliance to safety and
security policies
• Measurement of quality of
services delivered
• Average realised cost savings
of 8-12% in first year
Services Workflow
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Recognizing Common Engagement Patterns Is Key
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
• Common patterns are emerging in the market
Project-based Services
- Characterized by well-defined
projects or functional areas
Outsourced/Offshore
- Any combination of off-site, near-
shore, or off-shore services
Business Consulting
- High-value consulting; engaged
typically at corporate level
BPO
- Complete outsouring of a category
from planning to delivery
Re-billable Services
- Engaging vendors to deliver
services to end-clients
Independents
- Engaging independent consultants
or a community of smaller
suppliers
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SOW Support Models Differ by Engagement
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
Actor
Multi-Bid Creation Support
Multi-Bid Negotiation
Supplier Onboarding and
Management
Supplier Contract Manager
SOW Creation Support
Deliverable and Milestone
Tracking
Worker Profile Tracking
Consolidated Invoicing and
Payment
Supplier Performance
Tracking
ProcurementPMO/MSP SupplierHiring Manager
Degree of Engagement
Less……….…….More
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Fieldglass Services Procurement Analysis
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
30%
OF RELEASES
DEDICATED TO
SOW in 2015
4k+
SUPPLIERS
ENGAGED IN SOW
- IT Services
- Financial Services
- Facilities
- Risk & Compliance
- Engineering
- Business Consulting
- Maintenance & Support
- Training
- HR & Benefits
- Print
- Call Center
- BPO
- Research
- Audit Services
- Legal
- Marketing & Creative
- QA & Testing
- Field Services
S A M P L E S O W C A T E G O R I E S
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Services Procurement Business Benefits
Key Drivers Description
Est. % of savings
over two years
Rate rationalization
- Contracted rates for each assignment role
- Enforce rate cards
3-6%
Competitive bidding
- Competitively bidding transactional engagements among preferred suppliers
3-5%
Supplier rationalization
- Rationalize number of suppliers based on performance
- Negotiate lower rates based on higher volume
- Reduce supplier management effort
1-3%
Service type classification
- Decision matrix to correctly classify spend
2-4%
Discounts
- Volume discounts
- Early payment discounts
2-4%
Spend visibility
- Cost controls through financial authority based approval cycles
- Compliance to spend policy
- Spend trends and anomalies
1-2%
Payment process efficiencies
- Payment cycle time efficiency
- Accruals management/Cash flow control
- Reduction in manual processing
1-3%
Program office efficiencies
- Reduction in operational effort
- Improved compliance to policy
- Effectively drive change management
Higher efficiency;
difficult to
measure hard
savings.
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Six Critical Success Factors for SOWs
© 2015 Fieldglass, Inc. All rights reserved. Proprietary and Confidential.
1.Identify core business objectives
2.Stakeholder buy-in
3.Funding model
4.Supplier buy-in
5.Program management model
6.Scope and role of relevant enterprise systems
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DEMONSTRATION
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QUESTIONS?
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