Software Developer Gains Visibility and Control Over Contingent Labor Category Spend (onshore and offshore)
Client Profile: A developer, licensor, and supporter of software and devices
In late 2017, our client chose Simplify VMS to provide visibility into their contingent labor management program. Prior to onboarding Simplify VMS, the client’s HR managers experienced several challenges with managing their contingent workforce, including:
They didn’t have a full view of non-employees working for their organization; where they were located, which agency they were from, or which compliance procedures were followed (if any) to onboard them
They didn’t have one centralized process to manage their contingent workforce; creating a significant burden surrounding supplier engagement (e.g., contract negotiations, invoice reconciliation, etc.)
They didn’t have visibility into their talent suppliers’ pricing and markups; supplier base opacity often times resulted in higher costs to onboard contingent labor resources, which reduced the program’s return on investment
They did not have an existing vendor management system (VMS) and so they needed support to setup the tool
Through a competitive RFP bid process, the client decided to go with Simplify VMS for its ease of use, straight forward system setup and quick implementation timeline.
“Half of the 40% we saved on our non-employee workforce spend in the past 12 months can be attributed to onboarding Simplify VMS. The analytics we pulled were thorough and helped us make some tough, yet necessary, decisions around our workforce strategy. It’s been a pleasure working with the Simplify Team!”
By onboarding Simplify VMS, the client was able to setup their VMS of choice and centralize their contingent workforce data stream into one channel in five weeks. From this channel, hiring managers were able to pull workforce reports in real-time and automate workflows, which helped them when they needed to onboard offshore resources to support a new call center in South East Asia. Additionally, by having visibility into their supplier base, managers were able to transform their talent management strategy by expanding the base of suppliers from which they were pulling (both onshore and offshore), which resulted in price competition and an overall lower cost per head.
Another major benefit of funneling their contingent labor data (e.g., invoices, timesheets, requisitions, etc.) through one tool was the creation of a single channel of information that program stakeholders could leverage for a variety of uses. This channel has eliminated the need for touchpoints (e.g., emails) and requisitions outside of the system, which has helped the client gain control over all non-strategic program spend, ultimately resulting in greater value achieved from their contingent workforce program.
The client moved several onshore support functions to offshore sites. By having Simplify VMS setup, it made the transition to the new locations easier as new staffing suppliers in the program were able to quickly get up and running and contributing to the program’s needs. By having more visibility into their contingent workforce, the client sponsor was able to update their supplier base, source new suppliers, and significantly reduce their administrative workload.
Overall, program managers were able to successfully launch several new offshore initiatives, create measurable metrics for HR to use, and drive a significant number of inefficiencies out of the program. As a result, the client created a benchmark to measure the program’s return on investment against each year for HR, and reduced call center headcount costs by ~40%.