Best Practices, Tools & Solutions
VMS Evaluation: Simplify the Complex
Contingent Workforce Management Evolution
S
ince the late 1990s, staffing companies, managed service
providers, and vendor management systems have emerged
to form an industry that enables sophisticated contingent
workforce management strategies. Best in class companies have
been actively implementing managed services programs and VMS
tools to generate cost savings, increase visibility, and reduce risks.
The contingent workforce landscape brings complexity, a myriad
of suppliers, and its own language. And it is rapidly evolving.
In the past 24 months, we have observed significant acquisitions
and shifts in go-to-market and service strategies from most providers. Add to that an economic downturn, legislative and statutory
changes and new risk considerations for businesses. How can you
best assess your company’s needs and identify providers who can
best fulfill your requirements?
Look Inside
There is an opportunity to deliver results to your business by automating and proactively managing your services spend. But are
your internal stakeholders aligned to a common vision? Consider
the following dimensions to succeed with a new initiative or take
an existing program to the next level:
• Have you assembled a cross-functional team with an
Executive Sponsor to help drive the change?
• Do you have clear goals, outcomes and measures of success?
• What is your current state and desired future state process?
Look Outside
Once you assemble your guiding coalition and develop your contingent workforce strategy, you can begin evaluating providers.
When looking at VMS and Managed Service Providers (MSP’s),
there are a variety of factors to consider.
In addition to exploring the experience and credentials of a provider, take a closer look at its people and culture. Similar to
interviewing job candidates, you can learn a lot by asking ‘behavioral’ questions. Understanding how the provider will support
your program management team, respond to issues, and help
you drive improvements on an ongoing basis are the keys to your
success.
As it relates to VMS technology, “req to check” functionality is a
given. Match your evaluation criteria to your business requirements, and consider these thought-starters for further functional
and technical review:
• How intuitive is the application for an infrequent hiring
manager or suppliers who are critical to your talent supply
chain?
• Review project-based services and statement of work (SOW)
functionality to see how effectively you will be able to
address this specific spend category. Does it allow suppliers
to compete and submit creative approaches to projects?
6 | Sponsored Supplement to Contingent Workforce Strategies
• If your scope includes global operations, is the system already
configurable for multiple languages, currencies, and legislative differences?
• How effectively can your program office make both day to
day and “big picture” decisions with the analytics functionality delivered through the system?
• How does the VMS platform fit with your IT strategy? Is it
easily integrated with your existing enterprise systems?
Move Forward
There are many expert resources available to aid you in developing
your strategy and choosing your partners. Whether you are starting fresh or improving an existing process, total cost of ownership
is a primary consideration. You will talk to others and consider
their perspectives and experiences. At the end of the day, you will
evaluate countless possibilities, align your internal resources, and
determine your best path forward.
In summary, you can accelerate contingent workforce results by
selecting the best partners based on both hard and soft criteria:
• Strive to match your company’s culture and values for the
greatest long-term potential. Establish a mutually beneficial
relationship based on a clear vision for success.
• Confirm that the provider’s resources will be available to
meet and exceed your service expectations in the timeframes
you expect. Will the provider invest the time to proactively
bring you best practice recommendations?
• Invest the time to ensure your selected partners have high
integrity and will deliver on their promises. How well can
you get to know the people who execute in addition to the
sales team?
• Build SLAs that reinforce your expectations into your agreement. Protect your company’s investments and reduce your
risks.
Learn More
Want to build your personalized needs assessment and evaluation
checklist? Visit www.provade.com/checklist for more information. z
Edward Jackson
President and CEO
Provade
Edward “EJ” Jackson brings over 20 years of executive management, technology and entrepreneurship experience to
Provade, a leading Vendor Managed System (VMS) provider. Prior to co-founding Provade in 2004, EJ served as a
Director for Supplier Relationship Management (SRM) Product Strategy for
PeopleSoft. EJ joined the PeopleSoft SRM team when SkillsVillage, a company EJ was the CTO and co-founder, was acquired by PeopleSoft in June
2001. SkillsVillage was one of the first VMS software companies. Prior to
SkillsVillage, EJ served in a variety of capacities of IT and management consulting to Deloitte & Touche, Anderson Consulting (now Accenture), DOE,
Baxter Healthcare and Perot Systems.