Spend Matters 50/50: ZeroChaos – A Provider to Watch in 2015

Spend Matters Almanac

ZeroChaos, founded in 1999, is highly innovative global workforce solutions management company that is sometimes pigeonholed in the industry categories of MSP and VMS. In terms of spend under management, the company does rank high among other providers in these categories, certainly in the 70th percentile. However, ZeroChaos has clearly differentiated itself based on its own unique approaches to spend management and its innovative approaches to workforce and project sourcing and delivery. It has done so leveraging its own technology platform that may not fit neatly into the category of vendor management system (VMS).

The company’s website states, “More than a managed service provider, ZeroChaos is a workforce consultancy of unbiased, 100% transparent contingent workforce solutions.” Other than the hyperbolic 100%, this statement appears to be accurate.

To start off with, ZeroChaos is definitely not a part of a staffing firm as most of the high-ranking managed service providers (MSPs) are, making for a stronger argument for vendor neutrality.

As Spend Matters has thoroughly analyzed, “ZeroChaos applies many methodologies in the sourcing of services that would be more at home in a strategic sourcing consultative environment.”  The company provides relatively more extensive and detailed spend analysis, focused both on the buyer and supplier sides. In addition, in its analysis, ZeroChaos targets not only hard savings but also soft savings, including management time and compliance overhead.

Furthermore, ZeroChaos brings a unique approach to statement of work (SOW) management, which includes detailed analysis of costs and other project components as well assessing the value of the relationship based on service quality and delivery. One of the most innovative solutions ZeroChaos offers its clients — in connection with SOW — is what it calls crowdsourcing. In this highly cost-effective solution, ZeroChaos becomes the outsourcer of an SOW project, which is fulfilled by offshore contractors and contract firms, which are vetted and selected by the client.

The crowdsourcing approach to SOW is not the only non-supplier-based contingent workforce sourcing solution ZeroChaos offers. The extent of direct sourcing solutions — which it calls Alternative Sourcing, including recruitment process outsourcing (RPO) and private-label sourcing — further differentiates ZeroChaos from many other MSPs. Accordingly, in Oct. 2015, ZeroChaos introduced a new cutting-edge, artificial intelligence-based solution, Global Talent Cloud, which enables clients to rapidly and efficiently source contingent workers from a range of sources, including staffing suppliers participating in the ZeroChaos Cloud.

Without a doubt, ZeroChaos is one of the most distinctive players in the contingent workforce managed solutions space. Its innovative supplier and spend management and contingent workforce sourcing approaches, and ongoing innovation, would seem to put ZeroChaos in its own category. (Let’s call it “contingent workforce solutions management”.) 

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