A direct contractual relationship with the VMS can create greater flexibility for buyers who may wish to either manage a program internally or make a change to their MSP provider without disruption to their technology solution. Forty-five percent of reported programs have a direct contract with their VMS provider, and 23% of programs are internally managed.
Statement-of-work continues to be a focus area for VMS providers, with more than half of participants reporting clients sending SOW spend through their systems. CW managers, too, report increasing desire to include SOW spend in their programs. Despite this, SOW represents just 16% of reported 2019 spend under management, suggesting that it remains a largely unpenetrated market for VMS. Despite the potential opportunity, VMS providers need to be clear in their SOW value proposition to persuade buyers that VMS is a credible alternative or complement to other, more traditional spend management platforms.