CXC Corporate Services Underscores Growing Need to Field and Manage Global Contract Talent Andrew Karpie - June 19, 2015 6:30 AM | Categories: Contract Management, Managed Services, Outsourcing, Procurement Strategy & Planning, Services Procurement & Contingent Labor Management | Tags: L1, Sourcing and Categories This week, CXC Global, a 22-year-old provider of contractor compliance and payments with a global footprint, launched a new entity, CXC Corporate Services, to directly engage with and address the unique needs of large enterprises managing extended contractor workforces in different parts of the world. It’s an interesting story of how the global supply chain for contingent talent is evolving, as well as a heads-up to services and contingent workforce procurement professionals who will likely be facing increasing demands to directly engage contract talent in different parts of the world. Globalization Changing Talent Rules of Engagement Globalization is giving rise to a flat world game where companies of all sizes must increasingly conduct business with great agility across an international playing field. In many cases, companies – even very large ones – must establish individuals or teams in different countries, without sinking the large investments and taking the time to establish an in-country legal entity. In these increasingly common scenarios, businesses need a support system or services network that will ensure wherever their in-country contract workers are activated, they will at least be engaged and paid in accordance with local laws, regulations and customs. In most of these cases, businesses will need more. A very interesting long-term trend has been unfolding where companies can forego asset acquisition and ownership in other countries – whether for materials sourcing, manufacturing plants, support services or human capital – and can obtain what they need through contractual relationships. This may not be news to procurement professionals managing materials and manufacturing supply chains, but for services procurement professionals, this is not an old hat and needs increased attention. Directly engaging and managing contract talent abroad and not through outsourcers or staffing firms is a rapidly growing requirement, particularly for enterprises playing their game globally with agility and competitiveness. But for most enterprises, this process remains a foreign and obscurely complicated one. CXC Global Plays On with CXC Corporate Services The CXC Corporate Services parent company CXC Global has long acted as a service provider adjunct to major managed service provider (MSP) and recruitment process outsourcing (RPO) companies operating around the globe. (CXC Global is also known as a direct servicer of companies in verticals such as minerals extraction and oil and gas, making it the largest global contractor compliance and payment services network of its kind, in terms of processed spend and country coverage.) Now the new entity CXC Corporate Services will begin engaging enterprise clients directly to better address their growing needs to engage more critical talent as an extended, contingent and integrated part of their strategic business workforce. I recently had the chance to speak with Managing Director Connor Heaney, based at CXC Corporate Services headquarters in Dublin, Ireland, this week, who shared with me a bit more detail about the new business. Connor pointed out that parent company CXC Global, the foundation of CXC Corporate Services, is an operational, tactical execution service delivery network that incomparably supports global contractor payments and compliance. Now CXC Corporate Services is being formed to engage, support and enable enterprises to develop their own strategic approaches to executing and managing their extended global contractors across the globe, while leveraging the well-established and proven CXC Global service delivery network as a part of their implemented programs. According to Connor, CXC Corporate Services will provide enterprise clients advisory and implementation services in the following areas: Contingent workforce and vendor neutral management Workforce management and planning Cost transformation programs Contingent workforce compliance Outsourced payroll management While in a number of ways these services seem similar to some that may be provided by MSPs, it is important to realize that these services focus on the highly specialized and deep area of engaging in-country contact workers, who often represent indispensable talent for the businesses with which they contract. As demand for these types of contractor engagements rises, CXC sees that enterprises need more than a one-size-fits-all approach. In addition, CXC Corporate Services is strictly vendor neutral and will not enter into sourcing or recruiting of this talent, a value stream that remains fully intact with the MSPs or related types of businesses. So What’s the Score at This Stage of the Game? When it comes to competing on the global field of play – especially in operating with the agility and global reach to engage critical talent – it’s not clear how much stoppage time companies will be afforded to get on the ball. From its vantage point as a 22-year-old global services provider for contract workers, CXC has identified some key trends for how enterprises increasingly need to engage contract workforce in foreign countries. These trends seem to be real and merit further attention from services and contingent workforce professionals in enterprises that are doing business in a wider range of locations around the world. Checking out CXC Global Services – a new, expertise-based and execution-ready service provider geared-up to address these challenges – may also be worthwhile. 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