The Benefits of Taking Control of a Statement of Work Program
Customer: US provider of digital cable television and telecommunications
A client since 2007, this major communications company headquartered in the southeastern US had realized significant savings with our Managed Service Program (MSP) and Vendor Management Solution (VMS). In 2009, they approached us to help them gain transparency in spend in order to better manage their entire contingent workforce across all requisition types, including those
Following initial discovery, a number of significant challenges presented themselves. These included:
By taking the time to understand the client’s current processes and working directly with them, we were able create a solution that not only met their needs but also greatly exceeded their expectations.
The results have been so positive, the client is implementing the program in every location for a total program size of $400M annually! Millions of dollars that hadn’t been tracked are now being managed through customized SOW module - now that costs are understood, suppliers can be ranked and competitive bids sought, bringing costs down considerably. Compliance exposure is eliminated and workers properly classified. Accrual system is in place and expenses recognized when incurred.
The Full Success Story
In 2009, the Senior Manager of Strategic Sourcing approached ZeroChaos with a request. Given the ever growing size, blend – and geographic distribution of their contingent workforce – the organization saw the need to gain transparency in spend to better manage its entire contingent workforce across all requisition types, including those service providers engaged under a Statement of Work. As a trusted partner, they asked us to customize our MSP program by enhancing our service delivery modules and VMS Technology to fit their specific business needs.
Upon the completion of our initial discovery, it became clear that the following challenges existed:
How Success Was Achieved
ZeroChaos conducted workshops to review each of the current steps in the service provider engagement process, identified gaps in those processes and worked hand-in-hand with the client to design our technology development roadmap. A little over a year later, a fully customized program was rolled out incrementally at the client’s corporate headquarters, making it possible for them to manage service procurement in conjunction with the existing staff augmentation program. An MSP compliance solution that included 1099 evaluation, service provider vetting and SOW classification was also deployed. In the first year alone, $16M in SOW spend was put under management to include 237 engagements and 76 client project managers.
Game Changing Results
By 2011, the new SOW module had 85% adoption without a mandate. The results were overwhelmingly apparent:
The Senior Manager also received well-earned kudos from the company for her foresight in understanding the cost savings that could be achieved by working with the right partner.
View / Download PDF