Contract Workforce & Talent Exchange Demystifying the Marketing on Vendor Neutrality

Today’s Presenters JEFF NUGENT, Founder & Managing Director TED WEYN, Co-Founder & Managing Partner

Agenda Overview: What is an MSP? MSP Programs History & Evolution MSP Programs – Structure – Design – Pricing What is Vendor Neutrality? – Definition – The Marketing of Vendor Neutrality Keys to Success – What to Watch For – How to Drive Results

What is an MSP? Managed Service Providers take on responsibility for outsourced management of all facets of contingent labour program, including day-to-day operations including hiring, on-boarding, administration and off- boarding activities.

What is Vendor Neutrality? A vendor service that is not proprietary (e.g. not privately owned and controlled) by one of the vendors. Vendor neutrality can be of concern, especially in the enterprise where there is a need for processes to integrate with others vendors or processes. The presumed advantage of choosing a vendor-neutral model is that the best solution can be chosen at any time, and without conflict of interest.

Staffing Industry History: Managed Services 1970s 1970s – American Express originally introduced the concept of Managed Services through their Travel Services Division. 1980s 1980s – “On-site” programs grew into Vendor on Premise Programs and were adopted by the staffing industry. 1990s 1990s – Vendor on Premise Programs migrated into full departmental/category outsourcing. 2000s 2000s – Vendor Management System (VMS) Technologies emerged for Staffing – Refined MSP, VMS, ICES – Programs are expanding into broader indirect goods and services with outsourced models evolving beyond typical MSP SOW, Legal, Marketing, Printing.

Future of Managed Services: Business Process as a Service (BPaaS) A combination of Business Process Outsourcing (BPO) and Software as a Service (SaaS) Changes focuses from “Resources to Results” Provides total ownership to one outsource entity Provides a process vehicle for greater scalability

Best In Class Solution Utilization Courtesy of: Complexities of the Contingent Labour Umbrella (June 2010), Aberdeen Group

Enterprise CWM Program Model CLIENT + ICES & Payrolling Vendor Vendor Management Software (VMS) Independent Contractors & Non Preferred Vendors Managed Service Provider (MSP) Vendor 1 Vendor 2 Vendor 3

Pricing MSP2-5% VMS1-2% Vendor25% Percentage of Spend / Invoice Margin Breakdown Note: MSP/VMS fee is paid by the Vendors

Alternative Pricing Models Flat Management Fee Incentive % Share of Savings KPI / SLA Incentive

LinkedIn Poll Results

How it Works: The Marketing of Vendor Neutrality STAFFING MSP VMS PAYROLL Companies provide various solutions which are branded differently to appear neutral.

Key Components When Selecting an MSP Vendor Neutrality Does the organization have the depth of experience to provide the service? What is the organization’s core business? – Staffing? – Software? – Services? What is the structure of the commercial arrangements Are the KPI’s reasonable Do the KPI’s ensure a “level playing field”

Key Components When Managing MSP Keep the fox out of the henhouse!

Benefits to Vendor Neutrality Focus on program performance without fulfillment distractions or conflicts Internal staffing program goals and strategies fully aligned and supported Program support not tied to staffing industry economic cycles Better overall supplier relationships Protection of human capital assets

Keys to Success Ensure fill ratios and to keep users in the system Flexibility to expand and contract with varying labour market and consumption needs Period Review of Market Rates

Keys to Success Provide visibility and tracking Flexibility to meet client requirements and changing needs

Keys to Success No association with a staffing company or vendor management application Contracted to ensure service levels and savings Rewarded not only on percentage of spend Manage change management and communications initiatives

Other Keys to Success Policy Development Executive endorsement and support Identification of a neutral cost effective billing and payroll firm Firm not in the business of staffing Protects your company’s IP assets

Thank You!