As a company’s employee landscape shifts to include more flexible workers, including project-based workers, it becomes increasingly more important and apparent that gaining visibility into this portion of a company’s workforce is not only necessary but vital to the future operation of the business. Companies have recognized the need to manage their temporary and professional staff (or contingent staff) through a Vendor Management System (VMS) but what about the projects and the consultants or workers associated with those projects obtained through a Statement-of-Work (SOW)? This category is managed through a process known as Services Procurement. Services Procurement is a process for buying and managing complex service categories. Unlike procuring physical goods, buying services is usually less centralized within a corporation and relies on a completely different supply chain than physical goods. The management of SOW engagements is dramatically different than that of contingent staffing. Beeline’s Services Procurement tool provides more than just insight into the workers and projects. This webcast will educate you on the benefits of managing this work group, over and above the cost savings it can provide.

1. HR.com Webcast
Getting the Most Out of Your Flexible
Workforce with Services Procurement
Presenter:
Amy Woodham, Product Manager – Beeline
July 25, 2012

2. #ServicesProcurement
Social Media
• Follow and contribute to the webcast
#ServicesProcurement
Beeline.com Confidential & Proprietary August 15, 2012 2

3. #ServicesProcurement
Agenda
• Where does Services Procurement Fit?
• Defining Services Procurement
• Common Terminology
• Current Trends
• Market Problems
• Organizational Benefits
• Key Considerations
Beeline.com Confidential & Proprietary August 15, 2012 3

4. Where does Services
Procurement fit?

5. #ServicesProcurement
Where does Services Procurement fit?
Beeline.com Confidential & Proprietary August 15, 2012 5

6. #ServicesProcurement
Where does Services Procurement fit?
• What is the difference?
Professional Temporary Services
Services Outsourced
Staffing Staffing Procurement
Procurement Workers
• Resource augments • Commoditized skills • Specialized skills not
• Specialized skills not • Longer duration contracts
current staff (for example, • Task oriented/lower value inherent to current staff
inherent to current staff that don’t change often
PM/IT resource) • Adds capacity/increases • Want to develop
• Want to develop • Not core business function
• High value added flexibility knowledge
knowledge • Supplier manages to
• Adds capacity / increases • Highly repeatable hiring • Typically brings expertise
• Typically brings expertise internal
flexibility and scalability process measured on delivery
measured on delivery requirements/SLAs
• Immediate cost savings • Compensated hourly • Compensated based on
• Compensated based on • Open-ended employment
opportunity • Managed by Organization competitive bid of
competitive bid of relations with the supplier
• Typical implementation • Supplier executes per deliverables or SOW
deliverables or SOW • 1 to many resources
focuses on IT Contractors internal requirements outcome
outcome
first due to large volume • Individual resources • Complex contracts
• Complex contracts
• Repeatable hiring process deliverables
deliverables
• Compensated hourly, • Milestone-based work with
• Milestone-based work with
usually to a rate card awards/penalties
awards/penalties
• Managed by Organization associated one to many
associated one to many
• Individual resources resources
resources
Beeline.com Confidential & Proprietary August 15, 2012 6

7. Defining Services
Procurement

8. #ServicesProcurement
Defining Services Procurement – What is it?
Services Procurement is a process for buying
and managing strategic outsourcing of
work and consultancy through a
Statement of Work (SOW)
Beeline.com Confidential & Proprietary August 15, 2012 8

9. #ServicesProcurement
Poll
• Is your Services Procurement
process centralized, decentralized,
I have no idea?
Beeline.com Confidential & Proprietary August 15, 2012 9

10. Common Terminology

11. #ServicesProcurement
Common Terminology
CompetitiveBid
Time&Materials
RFx
SOW
Milestone/Deliverable
Project FixedBid
Beeline.com Confidential & Proprietary August 15, 2012 11

12. Current Trends

13. #ServicesProcurement
Current Trends
95%
looking for
Services Procurement 14%
organizations
claiming SOW
visibility
Source: Aberdeen
Beeline.com Confidential & Proprietary August 15, 2012 13

14. #ServicesProcurement
Current Trends – Growth Outlook
Source: Staffing Industry Analysts
Beeline.com Confidential & Proprietary August 15, 2012 14

15. #ServicesProcurement
Current Trends – SOW based spend gaining visibility
65-78% of companies non full-time
employee labor spend falls into SOW
based engagements
Beeline.com Confidential & Proprietary August 15, 2012 15

16. Market Problems

17. #ServicesProcurement
Market Problems – What we’re hearing
Beeline.com Confidential & Proprietary August 15, 2012 17

18. #ServicesProcurement
Market Problems – Who needs it?
• Fortune 500
• Global 1000
• You?
Beeline.com Confidential & Proprietary August 15, 2012 18

19. #ServicesProcurement
Market Problems – Can you answer?
• Do you have visibility into your Statement of Work initiatives?
• Are you effectively managing this spend category?
• Is a competitive bid process used to generate the best cost and outcome?
• Do you have the data you need to trend project costs and analyze quality?
• Does your organization have insight into the budget and scope of all projects?
Beeline.com Confidential & Proprietary August 15, 2012 19

20. Organizational Benefits

21. #ServicesProcurement
Poll
• What is your #1 driver to implement a
# Services Procurement solution?
–
–
–
Visibility
Compliance
Cost Savings
– Quality
– Operational Efficiency
Beeline.com Confidential & Proprietary August 15, 2012 21

22. #ServicesProcurement
Organizational Benefits
• #1 reason to implement a Services Procurement solution is…
VISIBILITY
Beeline.com Confidential & Proprietary August 15, 2012 22

23. #ServicesProcurement
Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
COMPLIANCE
Beeline.com Confidential & Proprietary August 15, 2012 23

24. #ServicesProcurement
Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
OPERATIONAL EFFIENCY
Beeline.com Confidential & Proprietary August 15, 2012 24

25. #ServicesProcurement
Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
COST SAVINGS
Beeline.com Confidential & Proprietary August 15, 2012 25

26. #ServicesProcurement
Organizational Benefits
• Additional reasons to implement a Services Procurement solution is…
QUALITY
Beeline.com Confidential & Proprietary August 15, 2012 26

27. Key Considerations

28. #ServicesProcurement
Key Considerations
• VMS providers, there are a lot of different options
Beeline.com Confidential & Proprietary August 15, 2012 28

29. #ServicesProcurement
Poll
• Is your company currently building a
business case?
– Yes, we are currently trying to implement a solution
– We are 3-6 months out from implementing a solution
– We are 6 months+ out from implementing a solution
– I do not know
Beeline.com Confidential & Proprietary August 15, 2012 29

30. Summary

31. #ServicesProcurement
Summary
• Where does Services Procurement Fit?
• Defining Services Procurement
• Common Terminology
• Current Trends
• Market Problems
• Organizational Benefits
• Key Considerations
Beeline.com Confidential & Proprietary August 15, 2012 31

32. #ServicesProcurement
Summary – Download our latest whitepaper
• http://www.beeline.com/thought-leadership/whitepapers/services-procurement/
Beeline.com Confidential & Proprietary August 15, 2012 32

33. #ServicesProcurement
Summary – About Beeline
• Founded in 2000 & an independent subsidiary
of Adecco Group S.A. since January 2010
• Headquartered in Jacksonville, FL with key hub
locations in Chicago, London, Zurich and Manila
• 100+ clients and approaching $8B in spend
under management
• Support of all services types – Contingent Staff
(Staff Aug), SOW, Offshore, Recurring Services
& Outsourced Workers
• Industry leading Usability, Reporting and
Business Intelligence
• Proven integration with ERP and other
third party platforms
• A 2010 & 2011 Staffing Industry Analysts
“Top Overall Performer”
Beeline.com Confidential & Proprietary August 15, 2012 33

34. #ServicesProcurement
Questions
Beeline.com Confidential & Proprietary August 15, 2012 34