With contingent workforce (including SOW-based projects / services and independent contractors) expected to grow by nearly 30% over the next three years, leading companies will need a clear strategy to improve compliance and the intelligence of their spend decisions within this category. The evolution of contingent workforce requires that enterprises build a multifaceted program that can address spend, supplier, risk and talent management capabilities. Join Christopher J. Dwyer, research director at Ardent Partners, and a customer panel as they discuss the viability of this unique complex spend category and the opportunities available for organizations today to develop programs that can drive true strategic value from contingent workforce management. Learn more about Ariba LIVE at http://spr.ly/LIVE2014LV-d

1. Contingent Workforce and Services
Procurement:
An Overlooked Opportunity
#AribaLIVE

2. Christopher J. Dwyer
Research Director
Ardent Partners Ltd.
March 18, 2014
#AribaLIVE
Copyright © 2014- Ardent Partners Ltd.

3. ABOUT
•
3
Ardent Partners is a research and advisory firm focused on
defining, advancing, and promoting the supply
management strategies, processes, and technologies that
drive business value and accelerate organizational
transformation within the enterprise.
Copyright © 2014- Ardent Partners Ltd.

4. Speaker Bio: Christopher J. Dwyer
•
4
Research Director and VP of Operations
Copyright © 2014- Ardent Partners Ltd.
Recognized expert in complex spend management (business
travel, contingent workforce management, meetings/events)
Thought leader in the contingent workforce management industry
Industry analyst for nearly a decade
Previously a Director at the Aberdeen Group
Benchmarked thousands of organizations across spend and
supply management
Recently named an “Analyst Superstar” by HRO Today in 2013
Recognized as a “Pro to Know” by Supply & Demand Chain
Executive Magazine in 2014

5. Setting the Stage
•
•
•
5
The average contingent workforce is going to rise by nearly
30% over the next three years.
Only 45% of the typical company’s contingent workforce is
actively accounted for.
62% of enterprises consider contingent labor (and all of its
forms) as a vital business component.
Copyright © 2014- Ardent Partners Ltd.

6. Ardent Partners CWM Framework
•
•
•
•
6
The CWM industry’s first-ever official Framework.
Effective for ALL organizations, regardless of size, program
scope, or region.
Clear management path for each CWM category.
Includes:
Necessary performance metrics
Labor goals/objectives
Required competencies and capabilities
Underlying technology and automation
Copyright © 2014- Ardent Partners Ltd.

7. The Contingent Workforce Management
Framework
Traditional
Independent
Contractors
Complex
• Staffing suppliers
• SOW-based projects
• Freelancers / consultants
(“classic” sense
of temp labor)
Low-to-mid-level
talent
Requires supplier
management
capabilities
and services
Unique expertise
Requires a mix of
workforce and
spend management
capabilities
/ etc.
High-level talent
Requires robust
compliance and risk
management capabilities
Co-employment and
audit risks
•
•
7
Copyright © 2014- Ardent Partners Ltd.
•
•
•
•
•

8. What is the Value of Contingent Labor?
8
Copyright © 2014- Ardent Partners Ltd.

9. What is the Future of the CWM Industry?
9
Copyright © 2014- Ardent Partners Ltd.

10. What Does the 360-Degree CWM
Program Entail?
Spend Management
Supplier Management
Risk Management
Talent Management
10
Copyright © 2014- Ardent Partners Ltd.

11. Where Does Technology Fit In?
•
•
Vendor Management System (VMS)
•
Managed Services Provider (MSP)
•
11
Next-generation services procurement
Other solutions:
Analytics / Business intelligence
Pure procurement power
Workforce, spend and supplier management
Analytics / business intelligence
Automation of key CWM processes
Outsourced day-to-day operations (requisitions, supplier communications, etc.)
Recruitment Process Outsourcing (RPO)
Talent Acquisition
Independent Contractor Engagement Specialist (ICES)
Copyright © 2014- Ardent Partners Ltd.

12. Key Takeaways
•
•
•
•
12
The current scope of contingent labor includes traditional,
complex and IC-based labor.
The 360-degree program relies upon spend, supplier, risk and
talent management capabilities.
Quality is just as critical as cost or visibility.
To take advantage of this overlooked opportunity, enterprises
must look to the CWM Framework.
Copyright © 2014- Ardent Partners Ltd.

13. Contact Information
Christopher J. Dwyer
Research Director and VP of Operations
Twitter: @CJD_Ardent
cdwyer@ardentpartners.com
www.linkedin.com/in/christopherjdwyer
For more information please visit:
www.cporising.com and www.ardentpartners.com
13
Copyright © 2014- Ardent Partners Ltd.

14. Contingent Workforce and Services
Procurement:
An Overlooked Opportunity
Mary Finaldi, eEnablement Manager, Deloitte Services LP
March 18, 2014
#AribaLIVE
@ariba
Copyright © 2014- Ardent Partners Ltd.

15. The Contractor Challenge
•
•
•
•
•
•
15
Create a standard business process
Create a centralized repository
Improve spend visibility
Increase visibility into contractor details
Reduce on-boarding handoffs
Implement technology
© 2014 Ariba – an SAP company. All rights reserved.

16. Procurement Services Managed
•
55,000 Ariba Purchase Orders
800 Labor Purchase Orders
•
129 Preferred Suppliers
78 Labor Suppliers
•
16
7 Labor Categories
© 2014 Ariba – an SAP company. All rights reserved.

17. Ariba Implementation History
17
© 2014 Ariba – an SAP company. All rights reserved.

18. Initial Rollout – Temporary Labor
•
•
•
•
18
Established foundation for all labor categories
Introduction to e-Invoicing
Revised internal controls purchasing policy
Introduction of new Ariba users
© 2014 Ariba – an SAP company. All rights reserved.

19. Overall Services Procurement Benefits
•
•
Source labor categories to establish Preferred Supplier Program
Fully automated P2P process
•
•
•
•
19
Including Time Sheet & Expense PO Flip to Invoice
Cost Center Owners approve entire spend up front
Spend posts to budgets sooner
Improved reporting (spend, contractors, volume by location, etc.)
© 2014 Ariba – an SAP company. All rights reserved.

20. Services Procurement Expansion
•
•
•
•
•
20
Talent Development
Automate on-boarding
Plan integration between On Demand & On Premise for
Services Procurement
Contract Based Invoicing for Services Procurement
Project Based integrating Sourcing & Buyer
© 2014 Ariba – an SAP company. All rights reserved.

21. About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of
member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed
description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
“Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world
collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. These firms are
members of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm provides
services in a particular geographic area and is subject to the laws and professional regulations of the particular country or countries
in which it operates. DTTL does not itself provide services to clients. DTTL and each DTTL member firm are separate and distinct
legal entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts or omissions
and not those of each other. Each DTTL member firm is structured differently in accordance with national laws, regulations,
customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries,
affiliates, and/or other entities.
Copyright © 2013 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited

22. Contingent Workforce and Services
Procurement:
An Overlooked Opportunity
John W. Healy
Vice President & Managing Director Global Talent Supply Chain
KellyOCG
@unclejunkmuses
18March2014
#AribaLIVE
@ariba
Copyright © 2014- Ardent Partners Ltd.

23. KellyOCG
Holistic Talent Supply Chain
Management Approach
SUPPLIER
NETWORK
4,600
across the Americas,
APAC, and EMEA
Global/Regional Structure
SPEND UNDER
MANAGEMENT
Aggregator of the Niche
$7.5B
Client Retention
We bring the best talent supply chain
to the client
23
© 2014 Ariba – an SAP company. All rights reserved.
GLOBAL
FOOTPRINT
140
country capability

24. Talent Supply Chain Management
Outsourcing
Workforce Planning
Holistic Talent Management
Supply and Demand Forecasting
Talent Sourcing/Vendor Management
Workforce Balancing and Optimization
Talent Supply Chain Program Design
24
© 2014 Ariba – an SAP company. All rights reserved.

25. Actionable Analytics
25
© 2014 Ariba – an SAP company. All rights reserved.

26. QUESTIONS
#AribaLIVE
Copyright © 2014- Ardent Partners Ltd.

27. Appendix

28. What are the Current Challenges in Managing
Contingent Labor?
28
Copyright © 2014- Ardent Partners Ltd.

29. What are the Goals of the Typical
CWM Program?
29
Copyright © 2014- Ardent Partners Ltd.

30. Performance Metrics: Best-in-Class vs.
All Others
30
Copyright © 2014- Ardent Partners Ltd.

31. General Capabilities, Best-in-Class vs.
All Others
31
Copyright © 2014- Ardent Partners Ltd.

32. Complex CWM Capabilities, Best-in-Class vs.
All Others
32
Copyright © 2014- Ardent Partners Ltd.

33. IC Engagement / Management Capabilities,
Best-in-Class vs. All Others
33
Copyright © 2014- Ardent Partners Ltd.

34. Talent Management Capabilities, Best-in-Class
vs. All Others
34
Copyright © 2014- Ardent Partners Ltd.