Those of you who have heard this geek speak over the last few years – including as recently as early May at the Beeline customer conference in Florida - have no doubt heard me ramble ad nauseam about something, anything statement of work or SOW related. No topic more so than how the contingent labor program expansion into SOW-based services is being driven by our industry’s successful delivery of the program governance model to manage broad-based temporary labor spend.
Today my outlook for the contingent labor program and the future of the traditional MSP business model that has been supporting it is very strong:
The contingent labor industry's program-driven expansion into management of SOW spend is creating a new, more functionally adept and comprehensive spend management program model: Managed Services Procurement. This will be the new MSP.
My first procurement role was to initiate category management of $400M+ in annual professional services spend. I was fortunate to be able to collaborate with the Provade VMS team to develop some of the industry’s first SOW functionality. With that powerful tool and an empowering procurement leadership team, I experienced first hand the tangible value of having detailed visibility into and control over SOW transactions. Those basic procurement capabilities quickly gave rise to further spend segmentations, effective spend management strategies, significantly shorter cycle times, and an astonishing amount of savings.
The objectives of the Services Procurement function are really no different today than they were back then. But with new thinking and innovative advancements in service delivery and technology (i.e. MSP and VMS), the strategies for how to best meet those objectives have indeed changed. Managed Services Procurement is an evolving solution model to help meet those expectations. It will be the new MSP for the modern era.
Until next time,
NewDayMSP – Managed Services Procurement