the msp/rpo/vms landscape series - staffing industry …...the msp/rpo/vms landscape series ... wf...

©2017byCrainCommunicationsInc.Allrightsreserved.

ConcurrentSessionTheMSP/RPO/VMSLandscapeSeries

Speakers:§ StephenClancy,Director,ContingentWorkforceStrategies,Knowledge&Research,CCWP,StaffingIndustryAnalysts

§ ElizabethRennie,GlobalWorkforceSolutionsResearchDirector,CCWP,StaffingIndustryAnalysts


4


68%

65%

63%

63%

61%

60%

59%

58%

53%

50%

45%

40%

37%

36%

34%

33%

24%

15%

14%

26%

30%

15%

21%

25%

12%

36%

24%

29%

40%

35%

25%

50%

28%

53%

22%

17%

36%

50%

VMS

Consolidationofsuppliers

Substantialuseofoffshoring

MSP

Suppliertiering

Useofdomesticoutsourcing

Analytics- benchmarkingbill/payrates

VendorforICcompliance

Encouragediversitysuppliers

SOWinCWprogram

Tryingoutnewstaffingsuppliers

Mastersupplier

GlobalmanagementofCW

RPO

StrategyplanningincludesCW

Directsourcing

Internallymanagedprogram

ContingentRPO

Totaltalentacquisition

Inplacetoday Exploringwithin2years

“Whichofthefollowingarecurrentlyinplaceinyourorganisation,orarelikelytobeseriouslyexploredwithintwoyears?

N = 107

Source:WFSolutionsBuyersSurvey2016- Europe- Trendsinsuppliermanagementstrategies

©2017 byCrainCommunicationsInc.Allrightsreserved.


WorkforceSolutionModels

MSPMSPEvolution

Maturitytowardsoutcomes

RPOEvolution

Maturitytowardsoutcomes

Decentralised

Preferredsupplier

MasterVendor

TotalTalentAcquisition

Decentralised

AgencypreferredorIn-house

RPO

FLEXIBILITYvsSTABILITY


Terminology

Freetodownloadfromwww.staffingindustry.com


AGENDA

1. MarketOverview

2. VendorManagementSystemMarket

3. ManagedServiceProgrammesMarket

4. RecruitmentProcessOutsourcingMarket

5. TotalTalentMarket


Nowit’syourturn…

Whatistheannualspendgoingthroughyourprogramme?


VMSGlobalMarketSpendbyRegion2015(billions)

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

$0

$20

$40

$60

$80

$100

$120

2014 2015

VMSMarketSizeandGrowth

Growth+20% +15% +30% +59%

Global N.America Europe ROW


Growth+13% +11% +14% +20%

Global N.America Europe ROW

MSPGlobalMarketSpendbyRegion2015(billions)MSPMarketSize&Growth


$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Global NorthAmerica EMEA APAC LATAM2015Revenue(USD$m) $3,695 $1,623 $1,137 $830 $106ShareofGlobalRevenue 100% 44% 31% 22% 3%

RPOMarketSize&Growth

GlobalAnnualGrowth+15%

RPOGlobalMarketRevenuebyRegion2015(billions)


What’syournumber?

Thetotalannualspendgoingthroughyourcontingentworkforceprogrammesis…


AGENDA

1. MarketOverview






OccupationBreakdownVMSMarketbyOccupationalSkillCategory (%)2015

27%

23% 11%

9%

8%

11% 4%

InformationTechnology

Industrial

Office/clerical

Finance&Accounting

OtherProfessional

Engineering&Design

Healthcare



WhatispercentageofIToccupationalspendgoingthroughyourprogramme?

a.0- 10%b.10- 20%c.20- 30%d.30- 40%e.Over40%


ContingentWorkerProgrammeTrends

1.0 3.02.0WAVES:

FOCUS:SourcingLeveragingScale SourcingthroughNeutralModels SourcingforWork


TopDriversofVMSGrowthOrganizationalChallenges VMSFocus

SpeedofChange

IncreasingCosts

IncreasinglyComplexOperationsandSupplierRelationships

MinimisingRisk

ImprovedSupplierManagement&OptimizationandProcessEfficiency

StrategicSourcingInsights

BetterDecisionswithSupplierandRequisitionOptimization

On/OffBoardingwithWorkerClassificationandRateVisibility


VMSGlobalMarketSpendWorkArrangement2015(billions)

$36.80

$83.26

$0 $20 $40 $60 $80 $100

StatementofWork

TemporaryEmployees&IndependentContractors

MostPopularModels


TypesofVMSandTypesofVendors

StaffingServicesAffiliations

PurePlay

SAPFieldglass(SAP)

PeopleFluent

PROUnlimited*

Ramco*

PrideOne*

Beeline

3StorySoftware(Hays)

DCRWorkforce

Medefis(AMN)

Brainnet*

Shiftwise(AMN)

Agile1*

WorkNexus(SuperiorGroup)

Econometrix(Manpower)

Nétive

Lumesse

DirectSkills

PIXIDShortlist

Connecting-Expertise(USGPeople)

Provade(Oracle)

iSymphony*

• Nameofaffiliationcompanyisthesame

ERPAffiliations

XRM(Acro)


17%

42%

41%

Vendor'sOwnMSPInternalServiceProgramThirdPartyMSP

HowtoService?- BuildorBuy?VMSMarketbyMSPServiceModel(%)2015


What’syournumber?

ThepercentageofIToccupationalspendgoingthroughyourprogrammesis

a.0- 10%b.10- 20%c.20- 30%d.30- 40%e.Over40%


AGENDA

1. MarketOverview






MostPopularModels

$1.14$19.90

$0.19$10.18

$20.36$48.28

$0 $10 $20 $30 $40 $50

OutsourcedServiceManagementStatementofWork

ContingentRPOHybrid

MasterSupplierMSPVendorNeutral

MSPGlobalMarketSpendWorkArrangementandSourcingModel2015(billions)



IsStatementofWorkspendinyourprogramme?

a.Growingb.Fairlystablec.Nonexistentorreducing


TopDriversofMSPGrowth

SpeedofChangeandLargeRamp-upsofWorkerVolumes

UnmanagedcostsRelatingtoSignificantSpend

IncreasinglyComplexOperations

MinimisingRisk

SourcingOptimizationtosupportDiverseneeds&BusinessProcessStreamlining

CostControl

AgilitytoSupportPeaksandTroughsofCWneeds

On/offBoardingwithCWAuditsandRateComplianceVisibility

OrganizationalChallenges MSPFocus

DriveforCostEfficienciesandImprovedPerformance

CloserSupplierManagementwithAccesstoBenchmarkRates

SourcingHardtoFindTalent DevelopingNewSourcingModels

ManagingVMSTechnologyandIntegrations

ServiceandTechnologySupportacrosstheCWDelivery


TypesofMSPandTypesofVendors

IndustryFocus

SupplyChainFocus

PROUnlimited

Volt

Brainnet

Impellam

Hays

AMN

SuperiorGroup(WorkNexus)

CapitaAerotek

GRI

Solvus

iSymphony

BlendedVMS/MSPFocus

Agile1

Fircroft

DirectSourcingFocus

KellyOCG

Singular

Parallon

AGS

Yoh

RevTek

Mid-MarketFocus

SSSGibbsS3

RTM ContingentRPOAMS

MasterVendor

TAPFIN


BuyerProfile

68%

15%

11% 6%

Over10,000Employees(FTE)5,000-9,000Employees(FTE)2,000-4,999Employees(FTE)Lessthan2,000Employees(FTE)

40%

12% 25%

19%

4%

Lessthan$50m$50-$100m$100-$300m$300-$1,000mOver$1,000m

MSPSpendbyBuyerFTEHeadcountSizeandBuyerSpendSize(%)


What’syournumber?

IsStatementofWorkspendinyourprogrammegrowing?

a.Growingb.Fairlystablec.Nonexistentorreducing


Predictions1. Availabilityofanalyticsacrossdifferentworkertypes(Tempvs

permvsICetc.)withgreaterdataaggregationacrossmultipleclientbasesforbenchmarking

2. Greaterintegration acrossdifferentplatforms3. Supplyanddemand beingembeddedinworkforceplanning

programmes4. MarketplacesdevelopedacrossSaaSplatformstostreamline

processes5. Directsourcingfunctionalityalongsidethesupplymanagement


Predictions6. Talentpoolsforcontingentworkerstoincreasewithimproved

marketing7. Functionalitytosupportemployeereferralsand

recommendations8. Mobileappsforworkersandmanagerstosupportentryofdata

andapprovalsaswellasincreaseduseofautomatedinvoicesandelectronicinvoices

9. Programmegrowthinexistingclients10.RFXcapability


AGENDA

1. MarketOverview






$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Global NorthAmerica EMEA APAC LATAM2015Revenue(USD$m) $3,695 $1,623 $1,137 $830 $106ShareofGlobalRevenue 100% 44% 31% 22% 3%

RPOMarketSize&Growth

GlobalAnnualGrowth+15%

RPOGlobalMarketRevenuebyRegion2015(billions)


Nowit’syourturn

HowmanyoftheaudienceuseanRPO?


RPOKeyTrends

Source:RPOMarketDevelopments2016

1• TheRiseof“Sourcers”

2• TheCandidateisKing

3• DigitalPersonalization&Matching

4• StrategicTalentManagement

5• TotalTalentAcquisition



RPOMarketDevelopmentsRPOBuyerAdoption

Source:EuropeanWFSolutionsBuyersSurvey2016:Trendsinsuppliermanagementstrategies

RPOInPlaceToday Exploringwithin 2years Not Considering36% 28% 36%

Source:EuropeanWFSolutionsBuyersSurvey

2016:RecruitmentProcessOutsourcing

14% 18% 21% 21%

39% 54%

64% 68%

ImprovingworkforceanalyticsImprovingworkforceplanning

ImprovinglegalcomplianceMeetingtalentneedsofashortterm…

ImprovingqualityofhiresMakinghiringmorescalable

ReducingcostsImprovingrecruitmentefficiency

N=28

RPODriverstoAdoption



HighLevelServicesModels

12% 31%

52% 5%

0% 10% 20% 30% 40% 50% 60%

Source&SelectOnlySource,Select&Contract

Source,Select,Contract&OnboardSource,Select,Contract,Onboard&ExitInterviews


DetailedRPOServicesAdoptionAdoptionLevelsacrosstheRPOClientBase

2% 10%

24% 38% 39% 43% 43%

50% 56%

60% 72%

87% 90%

GamificationServices

VideoCV's,VideoInterviews

StrategicWorkforcePlanning

InterviewingPerformedbyRPOProvider

IntegratedWorkforcePlanning(Contingent&Permanent)

VendorManagement(whereusingsuppliers/agencies)

CareerSitedevelopment&brandingservices

Assessments&Testing

DiversityProgramSupport

Onboarding

InternalMoves

ExternalLaborMarketData&BenchmarkService

TalentPoolManagement&Reporting

Source:RPOMarketDevelopments2016


RPOGeographicScopeofRPOProgrammes

53% 24%

20%

SinglecountryclientscopeMulticountryclientscope(uptotworegions)Servicingtheclientin3ormoreregions


What’syournumber?

HowmanyoftheaudienceuseanRPO?


AGENDA

1. MarketOverview






RPOServiceBlendingwithHROandMSP

86%

9% 5%

RPOOnlyServiceScopeRPOServicesBlendedwithMSPServicesRPOServiceBlendedwithHROServices



HowmanyarealreadyblendingRPOandMSPmodels?


DrivenbyOrganizationalChallenges

How can I best integrate contingent and other non-employed workers with my employed workforce?

Who is doing work on behalf of my organization and to what reputational and legal risks does that expose me?

What training and career paths do I need to develop for workers of all types?

What is the real cost of these various workers and what are the optimal pay and benefits?

Which types of workers do I need and in what ratio in order to maximize productivity/cost-effectiveness?

How can I motivate and engage all those doing work on behalf of my organization (employed and non-employed)?

How can I best address skills shortages?


WorkforceSolutions

22%78%

EmployedWorkforceContingentWorkforce

Source:SIA2016CWBuyersSurveyconsolidatedacrossregions

AverageBreakdownofWorkforcebetweenEmployedandContingentWorkforce


WorkforceSolutions


What’syournumber?

HowmanyarealreadyblendingRPOandMSPmodels?


VMSMarketDevelopments

MSPMarketDevelopments

TotalTalentAcquisitionMarket

Part1:Drivers,Innovations&GeographicalCapability

Part2:MarketSizing

Part3:MarketDifferentiators

Part1:Drivers,Innovations&GeographicalCapability

Part2:MarketSizing

Part3:MarketDifferentiators

RPOMarketDevelopments

Wheretogetmore…..


ThankYou!

Questions?


TwoEasyWaystoGiveFeedback

RatesessionsontheConferenceCommunity (allsessions)

FillouttheEvaluationCardonyourchair(concurrentsessions)


§ CWSConnect16:50-17:30 |Saphir Room

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the msp/rpo/vms landscape series - staffing industry …...the msp/rpo/vms landscape series ... wf...

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