Amid the economic fallout of the pandemic, the C-suite will be looking for areas within their organization to capture more cost savings. The CW program can deliver via a focus on SOW arrangements.
If handled correctly, incorporating statement-of-work management into your CW program can bring significant benefits, including managing costs and risk. But proper planning is critical.
From efficiency to visibility, incorporating statement of work has great benefits to the program. Here are some organizational drivers that are pushing programs to incorporate SOW.
Growth in the MSP market — representing $141 billion of spend under management in 2018 — slowed to an estimated 8% compared to 12% in 2017, according to SIA research. Despite the slowdown, interest in MSP remains.
Organizations looking to expand can use the SIA Optimization Roadmap, which provides individual activities necessary to establish CW program or improve an existing one.
Information technology represents the lion’s share of the reported SOW spend (51%) going through an MSP, according to the 2019 MSP Landscape & Differentiators report by Staffing Industry Analysts.
VMS pricing modelsWhile contingent workforce programs’ appetite is increasing for alternative VMS pricing models, fee as a percentage of spend remains dominant.