MONDAY 3:15 4:15 PM DALLAS B Concurrent Session: Innova&on Build or Buy? Direct Sourcing and Internal MSPs: Is Going it Alone Worth it? Moderator: Bryan Peña, VP, Con0ngent Workforce Strategies and Research, Staffing Industry Analysts, CCWP Panelists: Sandra Buhler, Director, Con0ngent Workforce Program Office, MUFG, Union Bank Brooke Munier, Director Services Opera0ons, Insight Enterprises Gene Zaino, President & CEO, MBO Partners 2015 Crain Communica0ons Inc. All rights reserved. October 19-20, 2015 Omni Dallas Hotel
At our company we are interested in ge6ng the very best and brightest to work here. We feel the level of person working at our company creates a dis&nct compe&&ve and cultural advantage; Why on earth would I limit the way we engage them? HR Execu&ve, MicrosoF 2015 Crain Communica0ons Inc. All rights reserved.
Future of Workforce Management Employees Full 0me or part 0me Appren0ces, trainees, and paid interns Non- Employees Temporary workers Independent contractors or consultants/freelancers Online workers (e.g. micro tasks, crowdsourced, etc.) Professional services (e.g. management consultants, lawyers) Outsourced services (e.g. security guards, maintenance) Partners (e.g. supply chain, partnerships, joint ventures) Formal and informal volunteers (e.g. self- service customers) Franchisees/affiliates/associates (e.g. marke0ng, sales ac0vi0es, etc.) Robots/drones/cogni0ve compu0ng applica0ons
ConRngent Workforce Programme Maturity Model
EvoluRon of a Program Decentralized Several suppliers Procurement done on an ad- hoc basis Management done internally Preferred suppliers SelecRve set of suppliers selected Contracts in place Service level agreements (SLA s) in place Master Vendor One supplier (possibly managing 2nd and 3rd Rer suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA s and process Managed Service Provider (MSP) ConRngent workforce spend under management One contact point Direct cost savings on bill rate/ usage Customized SLA s and process Non- compliant spend eliminaron Total cost of ownership savings Total Talent Management Total workforce spend under management Complete workforce visibility Direct cost savings on bill rate and usage Customized SLA s and process Non- compliant spend eliminaron Increased total cost of ownership savings AddiRonal producrvity and process savings High degree of value added services CW as a Strategic CompeRRve Advantage CW talent as business differenrator Management strategies move beyond tacrcal considerarons into strategic ones CombinaRon of mulrple CW models to solve complex business problems. Technology crosses mulrple pla`orms in the enterprise Risks managed on a total enterprise basis with big picture focus on risks of acron and inacron
Program Opera0ons and Strategy Role of MSP is Evolving Buyer Sophis0ca0on/Expecta0on Evolu0on of Technology Time
What s Next?
Online Staffing: The Same and Different Temporary Staffing Online Staffing Temporar y Worker Freelance Worker Private Employment Agency Freelance Platform Clients Clients
Fastest Growing Part of the Staffing Industry Online staffing es0mated 1.5 billion in global revenue in 2014 Forecast growth to 2020 Conserva0ve 11 billion (CAGR of 40%) Quite plausible Online 14 billion (CAGR of 50%) Staffing Aggressive, but possible 32 billion (CAGR of 60%) Online Services Source: Staffing Industry Analysts Online Staffing Industry Segment Forecast Through 2020 Jan. 2014
Brooke Munier, Director, Services OperaRons, Insight
Insight at a Glance A Fortune 500 global provider of hardware, software, cloud and service solutions $ 5.3 billion in net sales for 2014 20 years on the Nasdaq Serving 80% of the global Fortune 500 Operations in 22 countries Clients in 200+ countries 1,200+ consulting and service delivery professionals 5,500+ Insight teammates worldwide 2,300+ technical certifications 3,600+ partnerships with hardware and software manufacturers 7+ million seats managed in the cloud Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. 2015 Insight Direct USA, Inc. All Rights Reserved.
TalentInsight Program Inception in 2012 Originated in the Services business to Meet the challenges of labor demand in a resale environment Consolidate a fragmented supplier base Centralize people/process/tools Internal MSP >16K temporary resources deployed annually 2015-2016 VMS implementation Expansion to include non-staffing supplier management Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. 2015 Insight Direct USA, Inc. All Rights Reserved.
Sandra Buhler, Director, ConRngent Workforce Program Office, Union Bank
MUFG WHO ARE WE? The Mitsubishi UFJ Financial Group (MUFG) is one of the world s leading financial groups, with total assets of approximately $2.4 trillion (USD) as of March 31, 2015. Services include corporate banking, commercial banking, retail banking, wealth management, investment banking, capital markets, personal and corporate trust, and transaction banking. Contingent Workforce Vision: Deliver a best-in-class, cohesive, bank-wide approach to staff augmentation/agency temp management that leverages technology to consistently deliver the required talent, at the right time, and optimal price Contingent Workforce Model: Hybrid Self Managed and MSP Annual spend on contingent labor 121M 14
PROGRAM TIMELINE Launched selfmanaged contingent workforce program (non-it spend) Bank of Tokyo request to replicate the program in NY/ NJ Merged both under one program office using a hybrid management model Integration to HR system Expecting to save $5M annually via direct sourcing/minimizing agencies use of subcontractors 2011 2013 2014 2016 2012 2013 2015 Expanded the program to include IT contingent workforce Bank of Tokyo launched their program using Fieldglass + an MSP Stabilized the program Building out a direct sourcing model to reduce dependency on staffing agencies 15
Gene Zaino, President & CEO, MBO Partners
The Compliance Tug-of-War SOW and STAFF AUG EMPLOYEE / EMPLOYER RELATIONSHIP FREELANCERS IRS DOL SMALL SVC. PROVIDERS COMMON-LAW TEST ECONOMIC REALITIES TEST A-B-C TEST 17
Introduction MBO Partners makes it easy for self-employed professionals and their clients to work together Largest, most experienced 60+ enterprise F100 programs 98% client retention Served 50,000+ independents Proprietary technologies State of Independence research reports Partnered with VMS and MSPs 18
Balancing Key Program Goals Risk Mitigation Cost Savings Program Adoption Talent Access and Management Operational Efficiency 19
Program Success Factors INTENT C-level mandate and buy-in Clear policy No backdoors Standardized processes Culture receptive to change Engaged Program Manager Client-funded Short payment terms Ease of use INCENT Proactive communications Culture facilitates new project access 20
Program Success Factors LOW Worker Satisfaction HIGH HIGH HIGH INTENT Forced Acceptance Clear Messaging Sustained Adoption Highly Engaged Talent Program Adoption LOW Death by 1,000 Cuts LOW LOW INCENT HIGH 21
Direct Source from a Pool of Proven Talent Small vendors Recruiting efforts Full-time alumni Existing payrollers Marketplaces/ networks Active contractors Private Talent Network Provider community 22
23 QuesRons?
Thanks!!!!
GIVE US YOUR FEEDBACK Build or Buy? Direct Sourcing and Internal MSPs: Is Going it Alone Worth it? Tap the ipad screen as you exit to rate this session. 2015 Crain Communica0ons Inc. All rights reserved. October 19-20, 2015 Omni Dallas Hotel