Case Study: A Global MSP Brings Efficiency and Savings

A Global MSP Brings Efficiency and Savings

Workforce expertise combined with technology helped one of the world’s largest telecommunications companies consolidate its global contingent workforce management efforts.

Business Issue

With a total contingent headcount of 4,700 across 400 locations in nine countries, the process of streamlining multiple managed service provider (MSP) programs would be complex for a variety of reasons. First, the company had seven separate instances of its vendor management system (VMS) across multiple locations and no efficient mechanism to understand if workers were being classified appropriately or rates were competitive. The previous program also included approximately 250 suppliers, and the company required that all original suppliers be included in the rollout. Finally, decentralized efforts resulted in a significant amount of rogue spending by local hiring managers, particularly through statement of work (SOW) arrangements that would have been better suited to being included in the MSP. In addition, the company continues to expand via acquisitions. requiring continuous deployment on a global scale.

To successfully carry out such a significant undertaking, the company chose Talent Solutions due to their global presence, a firsthand understanding of the company’s corporate culture, extensive technical experience and the experience to navigate local market conditions and stakeholder management needs.

Solution

To meet the client’s far-reaching needs, the Talent Solutions’ team designed a holistic Global Workforce Solutions program. This allows the team and the client to leverage the capacities and competencies of a large group of global specialists across the ManpowerGroup brands. 

A major area to address was technology alignment. The integration effort covered alignment of vendor management and enterprise platforms as well as sourcing and approval systems. For example, the team drew on its deep expertise of existing VMS platforms to merge seven instances of the client’s VMS technology into a single instance. The integration effort also aligned four separate enterprise platforms into one foundational feed, which improved invoice accuracy and standardization efforts. Improvements to the authorizations that feed into the approval system ensured greater control over financial approvals related to sourcing. Lastly, the team created custom interfaces to the client’s contract sourcing module to support SOW efficiencies.

The program also features a range of cost-saving initiatives designed to lower the overall expenditure without sacrificing quality or productivity. The team works to systematically identify areas of potential savings and to proactively implement solutions on an ongoing basis. These measures are organized into three categories: soft savings, which include reductions in economic costs related to modifying the maximum rates offered in requisitions and overtime/double-time factor savings that are calculated via a reduced markup for overtime and double-time; hard savings, including reductions in the overall MSP implementation cost, program-wide rate reductions and VMS rebates based on volume and economies of scale (hard cost savings are also achieved by opening up certain service activities, such as payroll, to a competitive bidding process); and cost avoidance, including efficiencies in accounts receivable systems and transference of screening costs to suppliers (e.g., for background checks or testing for illicit substances).

To address the issue of out-of-program, or rogue, spend and unauthorized SOW engagements, program development also involved the development of a formal process for SOWs, as well as training for relevant lines of business.

Results

Leveraging its workforce expertise combined with technology, Talent Solutions was able to achieve the following results: 

  • Total cost savings of $62 million, including $33 million in soft savings, $25 million in hard savings and $4 million in cost avoidance.
  • A 32 percent reduction in the total supplier pool (from 250 to 170).
  • A request-to-job posting time of less than two hours.
  • Time-to-shortlist occurs in less than two days, while time-to-fill averages 10-25 days (depending on the position and skills required).
  • A retention rate for technical skills of more than 90 percent

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