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1 VMS/MSP Landscape 2015: The State of the Industry Presented by: Tony Gregoire, Director of Research Staffing Industry Analysts Kristen McArdle, VP Professional Services, Brightfield Strategies LLC Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts November 19, am PT/ 1 pm ET This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or [email protected].

2 Please note: This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or Within 48 hours after the webinar, the slides for this presentation, the replay and relevant links to research will be ed to you. CWS Council members may access the research via these links; non-member attendees interested in the research should contact for assistance with getting membership.

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6 Who We Are Staffing Industry Analysts is the global advisor on contingent work. Our staffing firm membership is composed of many of the largest regional, U.S. and global staffing firms in addition to representatives from all parts of the contingent workforce industry. Our CWS Council membership represents over $100 billion in annual contingent workforce spend. We are a trusted advisor providing objective research within the contingent workforce ecosystem. Founded in 1989 Acquired by Crain Communications ($200M media conglomerate) in 2008, headquarters in Mountain View, California and London, England Comprehensive and vast industry and advisory service experience among executive, advisory and research team

7 CWS Council Members (partial public list)

8 Your Guide to all things Council..

9 Terminology Free to download from

10 Our speakers today Tony Gregoire, Director of Research Staffing Industry Analysts Kristen McArdle, VP Professional Services, Brightfield Strategies LLC Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts

11 Questions

12 Before we get started..

13 Not to be confused Applicant Tracking System (ATS) -A software application that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their own website, as a way to attract candidates. The ATS solutions store these candidate data inside a database to enable effective searching, filtering and routing of applications. Enterprise Resource Planning (ERP) Integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this activity by way of an integrated software application in order to facilitate the flow of information between internal business functions as well as external connections to outside stakeholders..

14 A brief History of VMS Vendor Management Systemsemerged in the late 80s early 90s from the VOP Vendor On Premises concept With the advent of the internet more purchasing spend was managed through e-business and online auctions PeopleNetat Ford Motor Company was the first true VMS, circa 1995

15 VMS Options Own VMS Proprietary in-house built technology Third-party VMS Either directly from a VMS Vendor or via an MSP that utilizes a VMS Other Technology Existing Infrastructure(s) that provide VMS like functionality but not robust enough to be classified as a VMS No Technology Paper, pdfs Spreadsheets

16 MSP Models Master Supplier Hybrid Vendor Neutral Internally Managed

17 Vendor Neutral MSP

18 Master Supplier

19 Hybrid MSP

22 2014 Estimated Market Spend ($ Billions) North America Europe Rest of World Global VMS MSP

23 2014/2013 Growth in MSP Spend Among Participants Temp/Contract 7% 15% Global US SOW 8% 25% Outsourced Services 17% 67% Total MSP 7% 17%

24 MSPs Listed by 2014 Global Spend TAPFIN Allegis Global Solutions Pontoon* Randstad Sourceright KellyOCG PRO Unlimited ZeroChaos Bartech Geometric Results Agile-1 Hays Volt Consulting Group Impellam Group DCR Workforce* Temp/Contract Aerotek SOW RightSourcing Outsourced Services Capita Resourcing Superior Group Fircroft Parallon WF Solutions CDI AMN Healthcare Solvus Brainnet Yoh Cross Country isymphony ADfusion Billions $0 $2 $4 $6 $8 $10 $12 $14 *2013 spend is used for Pontoon and DCR Workforce.

25 VMS Providers Listed by 2014 Global Spend Fieldglass* Beeline IQNavigator** PeopleFluent PRO Unlimited ZeroChaos PIXID Agile-1 Econometrix Provade** Impellam Group Hays/3SS DCR Workforce** Netive VMS MSX International Connecting-Expertise Work Nexus ShiftWise Brainnet PiLOTT isymphony Medefis CDI Temp/Contract SOW Outsourced Services Billions $0 $5 $10 $15 $20 $25 $30 *2012 spend is used for Fieldglass. **2013 spend is used for IQNavigator, Provade and DCR Workforce

26 Temp/Contract, Vendor-Neutral 2014 MSP Spend TAPFIN Allegis Global Solutions Pontoon* Geometric Results Bartech ZeroChaos PRO Unlimited Agile-1 KellyOCG Randstad Sourceright DCR Workforce* Volt Consulting Group Impellam Group Hays RightSourcing Brainnet CDI Capita Resourcing isymphony Superior Group Yoh Adfusion Fircroft Solvus Billions $0 $1 $2 $3 $4 $5 $6 $7 US Outside US *2013 spend is used for Pontoon and DCR Workforce.

27 Temp/Contract, Master Supplier 2014 MSP Spend Randstad Sourceright Pontoon* TAPFIN KellyOCG Aerotek Capita Resourcing Hays Volt Consulting Group AMN Healthcare Fircroft Impellam Group Solvus Yoh CDI Cross Country Superior Group Bartech US Outside US Billions $0 $1 $2 $3 $4 $5 *2013 spend is used for Pontoon and DCR Workforce.

28 Percent of VMS Clients by Funding Model United States 100% 80% 60% 40% 20% 0% Europe 100% 80% 60% 40% 20% 0% Supplier Client Other/Combination Supplier Client Other/Combination

29 Percent of VMS Clients by Pricing Model United States 100% 80% 60% 40% 20% 0% Europe 100% 80% 60% 40% 20% 0% % of spend Fee per worker Fixed monthly fee Other/Combination % of spend Fee per worker Fixed monthly fee Other/Combination

30 2014 MSP Spend From Clients <$10M in Annual Spend Randstad Sourceright TAPFIN KellyOCG Aerotek ZeroChaos Impellam Group Volt Consulting Group Agile-1 PRO Unlimited RightSourcing Solvus Superior Group Cross Country AMN Healthcare Hays Geometric Results Allegis Global Solutions Yoh CDI Parallon WF Solutions Fircroft Bartech isymphony Brainnet ADfusion Billions Temp/Contract $0 $1 $2 $3 SOW/Outsourced Services

31 2014 MSP Spend From Clients $300M+ in Annual Spend Allegis Global Solutions TAPFIN KellyOCG PRO Unlimited ZeroChaos Bartech Impellam Group Temp/Contract SOW/Outsourced Services Geometric Results Parallon WF Solutions Agile-1 Randstad Sourceright Billions $0 $3 $6 $9

32 21-22 APRIL 2015 Hotel Okura, Amsterdam

33 The contingent workforce game is changing. Drivers Buyer expectations Industry maturity Increased complexity Disruptive technology Tactical, operational support Temporary labor scope Operational excellence Customer satisfaction Thought leadership/innovation Strategic partnership Multi-category, flexible capabilities Advanced analytics

34 Trending up the maturity path

35 Global Expansion Growth in existing buyers as well as new regional buyers 30% growth for VMS providers participating in SIA Differentiators Report y-o-y Challenges continue: regulatory requirements/changes, regional maturity, low volumes VMS Providers Improved rate and taxation functionality Expanded geographic experience Worker tracking capabilities Data purging capabilities Statutory reductions MSP Providers Expanded geographic experience Flexible program models Regional hubs follow the sun Targeted acquisitions Entry of newer, regional providers

36 Creative Models APRIL by Crain Communications Hotel Okura, Inc. All rights Amsterdam reserved.

37 Services Procurement Increased spend under management for services procurement through CW programs Sourcing and contracting still relatively immature but growing Supplier adoption improving VMS Providers Expanded sourcing capabilities Improved contracting functionality Enhanced quality/performance capture Improved configurability MSP Providers Introduction of sourcing services Differentiation in resource support model for SOW Enhanced classification services Developing supplier performance management

38 SOW/Worker Tracking is still an opportunity APRIL by Crain Communications Hotel Okura, Inc. All rights Amsterdam reserved.

39 Data Analytics Operationalizing of analytics Multiple channels MSP, VMS, external sources (Talent Data Exchange) Greater scrutiny on data integrity and relevancy VMS Providers Graphical data representation and analysis User customized dashboards Data export capabilities Data aggregation and benchmarking across client base Integrated vs separate portals MSP Providers Data aggregation and benchmarking across client base Separate analytics offerings from VMS Business Intelligence shared services Market research and insight Program performance

40 Which SLA s/kpi s APRIL by Crain Communications Hotel Okura, Inc. All Amsterdam rights reserved.

41 Attracting Talent Buyers focused on retaining relationships with top talent silver medalists, alumni, retirees, referrals Desire to engage known talent through lower cost models Focus on buyer branding and market position VMS Providers Partnership with freelancer management systems (FMS) Integrated self-sourcing solutions MSP Providers Developing approach for managing talent pools Building buyer-specific talent portals Engaging social media channels

42 The Human Cloud A Crowd Crowdsourcing How the Work is Organised Online Staffing Platforms Top 50 firms Online Work Services Top 50 firms 10.9 billion Just-in-Time Staffing FMS Specific Worker(s) Labor Relationship What the Client Gets Service Output Source: Staffing Industry Analysts

43 Total Talent Management Focus on: Right channel to support the business need Healthy mix for the organization Performance to expectations/need by resource channels Proactive forecasting and planning Comprehensive visibility Shifting governance models VMS Providers Improved decision wizard functionality Stand alone capabilities External routing MSP Providers Expanded RPO offerings Workforce mix analysis offerings Workforce classification services

44 Examples of Total Talent Initiatives Kelly Workforce Solutions KellyOCG service line A Total Talent Approach A holistic approach to talent acquisition and management Randstad Integrated Talent Management Group Launched in January 2015 A holistic capability offering Volt Consulting Group Total Talent Management Solutions Blending recruiting of both contingent and perm workers Peoplefluent A total workforce management solution that spans the acquisition and management of your hourly, salaried, and contingent workers Tapfin Integrated Resource Fulfilment

45 Expect innovation and progress in 2016/2017 Providers embracing shifts Buyers restructuring/refocusing

46 Moderator: Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts

47 Burning Question? Book an analyst call:

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51 CWS Council CCWP Benefit* Savings of $150 or $50 for Fall In-Person Class CCWP Events! Use registration codes: FALL150 or FALL50 (for training only option) Dec 8 th & 9 th (Tue/Wed) San Adobe HQ * Other Volume Discounts are available. Contact Member Services for more information: Phone: Or [email protected]

52 CCWP Continuing Education and Recertification Program Enhancement Announcement More ways to earn CE credits, More Third Party CE credits available, More automation to submit CE credits earned, More affordable. Today s Webinar Attendance = 1 CCWP CEU Credit EXTEND your CCWP Certification for an Additional Three Years!

53 Upcoming webinars In House vs Outsource, which model is right for you? 12/17/2015 Copies of the slides and a link to the audio recording will be distributed to all attendees within 48 hours following the webinar A replay of the webinar will be available for CWS Council Members at