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Services Spend Compass – Free Research Download

Services Spend — Beyond Contingent Labor: Achieving And Implementing Savings Across Previously Unmanaged Categories

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In recent years, many procurement organizations have begun to examine the opportunity to consolidate their contingent—and even statement of work (SOW)—buying activities under a single buying umbrella. But in today’s environment, services procurement in non-contingent categories can have potentially an even greater impact from both cost and non-cost perspectives. Spend Matters research suggests that in categories such as marketing and print it is often possible to achieve 10%-20% total savings without changing vendors. Furthermore, in certain categories where companies have not yet specified service levels or consolidated their spending with specific providers, 25%–50% savings is not uncommon. In the legal spending arena, for example, some organizations we’ve spoken with have discovered that savings on the order of 10%-40% are often possible in targeted spending areas (e.g., patent filing work, paralegal support, etc.) without jeopardizing preferred-provider supplier relationships in key areas. Procurement organizations that actively manage non-contingent services categories also plan and budget more effectively by deploying new engagement and performance-based management approaches with vendors, building greater overall transparency and visibility.

Download the second paper in the Services Spend Compass to learn more about the non-contingent services opportunities and Spend Matters’ recommendations for achieving increased levels of savings, transparency and supplier performance across a range of categories in this area.