The Services and Indirect Spend Category

3 Strikes? Your ROI on Purchasing is Out!

Spend Matters welcomes this guest post from David Wadler, CEO of Vendorful.

Some people suggest that the chances of generating good ROI on a major purchase are effectively a flip of a coin. Unfortunately, those odds may be wildly optimistic.

In 2015, the Boston Consulting Group published a report detailing the results of a study about large IT purchases ($10 million or more). The study found that the odds of successful delivery — on-time, on-budget and meeting the specified objectives — were roughly 10%. Put differently, achieving a positive result on such a project would be closer to flipping a coin and getting heads three times in a row.

Sponsored Article

Planning for a Successful VMS Implementation

Spend Matters welcomes this sponsored article from Justine Hauth, implementation manager at SAP Fieldglass.

Your company has chosen a Vendor Management System (VMS) and you’re anxious to get started on implementation… but stop! An implementation project’s success begins with a well-organized and thought-out plan prior to kick off. Most of us have experienced the impact that poor planning can have: increased timelines, budgets, missed expectations and other frustrations that leave you scratching your head and asking “what went wrong?” and ”how did we get here?” So it’s essential that you consider the following while planning for a successful VMS implementation.

Following Up on SAP Fieldglass Flex: The New VMS for Mid-Sized Organizations

services procurement

In December, Spend Matters covered SAP Fieldglass’ launch of its new product, SAP Fieldglass Flex. The new offering is effectively a VMS designed specifically for mid-sized organizations. Existing enterprise VMS solutions have tended to be too complex and costly for mid-sized businesses. And although some enterprise VMS solutions may have achieved some limited penetration in the mid-market, we believe none has been (1) designed from the ground-up specifically for this purpose, (2) benefited from best practices knowledge of a leading enterprise VMS and (3) had the support of one of the largest global software players. Given the above, we thought it was important to go a bit deeper into understanding Flex and were able to have a conversation with Rob Brimm, President of SAP Fieldglass, to gather more details about the product.

How Will CPOTUS Trump Deal with the Gig Economy?

White House

President-elect Trump has wasted no time intrepidly wading into numerous policy areas. One notable area of action has been federal spending, where his frequent pledges to cut costs from federal programs has made him seem more like the chief procurement officer of the United States (CPOTUS). Beyond federal spending, however, we as analysts of the contingent workforce and services procurement space have a far more specific question we’d like to address: How will Trump deal with the gig economy?

3 Ways Contingent Workforce and Services Procurement Professionals Can Stay Ahead in 2017

services procurement

New Year’s resolutions are a fun, time-honored practice that are often made with the best of intentions – yet, quite often, they melt away like the the gray-brown remnants of snow by the time February and March roll around. However, we’ve resolved to help contingent workforce and services procurement professionals stay on top of their game as we head into 2017. Last week, Spend Matters’ Research Director of Services and Labor Procurement, Andrew Karpie, gave his look ahead on platform-intermediated work trends in the coming year, including possible scenarios stemming from how digital platform intermediation for work and services will increasingly become “a mainstream sourcing mechanism in the enterprise.” So how exactly can procurement practitioners in this space stay ahead?

With Flex, SAP Fieldglass Targets Barriers to Middle-Market VMS Adoption

SAP Fieldglass announced last week plans to release a new contingent workforce management solution for medium-sized businesses, taking aim at a market segment historically beyond the reach of VMS providers. The solution, called SAP Fieldglass Flex, is a cloud-based tool designed to help organizations source, hire and manage external labor. Procurement groups could expect to use it to control costs, comply with contracted rates and gain visibility into detailed reporting and real-time data, according to the company’s website.

TalentWave: Vendor Snapshot (Part 1) –– Background and Solution Overview [PRO]

TalentWave

TalentWave is a third-party independent workforce compliance and engagement service/solution provider. As a provider within the workforce supply chain, its core function is to ensure that organizations remain in legal compliance when engaging independent workers –– through Employment of Record (EOR)/Payrolling, Agent of Record (AOR) and other services. While these kinds of services/solutions are materially provided by a limited number of large staffing conglomerates (like Kelly and Randstad), TalentWave is one of a larger number of independent/non-captive providers in this evolving and increasingly important space.

This Spend Matters PRO vendor snapshot provides facts and expert analysis to help buying organizations make informed decisions about whether they need a solution like TalentWave as an alternative for or complement to their organizations’ incumbent solutions for organizing, managing and assigning work to their own “affiliated” workers. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider TalentWave. The rest of this multi-part research brief covers product strengths and weaknesses, competitor and SWOT analysis, user selection guides, and insider evaluation and selection considerations.

Merging Beeline and IQNavigator: Customer, Prospect and Partner (MSP) Recommendations [PRO]

change of control clauses

Since the announcement of the GTCR/Adecco transaction Tuesday morning, Spend Matters has penned a summary overview of the Beeline and IQNavigator merger considerations (see: GTCR Acquires Beeline From Adecco, Merges VMS Firm with IQNavigator) as well as a more detailed analysis of the mechanics of the transaction and what it might bring for the combined entity for Spend Matters PRO subscribers (see: Beeline, IQNavigator & GTCR: Transaction/Valuation Analysis, Future Product/Technology Considerations and SWOT Analysis). This Spend Matters PRO research brief provides initial recommendations for Beeline and IQNavigator customers and prospects, alternative solution providers and partners, including managed services provider (MSP) recommendations, following the merger.

When I Grow Up, I Want to be a Gig Worker

sharing economy

A recent trip to the Harold Washington Library, in downtown Chicago, forced me to confront a conflict between the contingent workforce dogma Spend Matters preaches and my own skepticism about the modern job market. What followed was a momentary crisis, in which I had to scrutinize the advice we give to procurement groups and more fully demystify the contingent workforce and the gig economy.

Beeline, IQNavigator & GTCR: Transaction/Valuation Analysis, Future Product/Technology Considerations and SWOT Analysis [PRO]

Tradeshift Baiwang

Earlier Tuesday GTCR, a Chicago-based private equity firm, announced it had acquired vendor management system (VMS) and freelancer management system (FMS) provider Beeline from Adecco. Spend Matters’ initial coverage of the transaction provides background on the merger of Beeline and IQNavigator.

The combination of the two providers creates a VMS powerhouse, both by services procurement network volume and revenue, making GTCR — as well as Adecco and the management of both organizations — the owner of the largest independent services procurement technology provider by a significant margin. It also marks a potential (and even near-term) takeover candidate by Oracle, another solutions provider, or even a firm such as Accenture — or as an IPO candidate as early as 2017. We explore these and other considerations in this research brief, as well as the material potential upside for Adecco, owing to the new capitalization structure of the combined entity for GTCR/Adecco, based on our analysis of the transaction and benchmark valuation considerations.

This Spend Matters PRO analysis provides a more detailed look inside the transaction and what it means for GTCR, Adecco and Beeline/IQNavigator, including potential exit options and how the combination could change some of the core dynamics of the contingent workforce and services procurement market. It also provides a SWOT analysis to illustrate the comparative position of the merged Beeline and IQNavigator in the VMS and broader services procurement market, as well as a product/technology outlook. Subsequent research briefs will provide customer, prospective customer and partner (MSP) analysis of the transaction and the relative combined technology capabilities of the merged organization.

GTCR Acquires Beeline From Adecco, Merges VMS Firm with IQNavigator

GTCR, a Chicago-based private equity firm and owner of IQNavigator (IQN), announced early Tuesday it had acquired Beeline, a vendor management system (VMS) and freelancer management system (FMS) provider, from Adecco. Beeline had previously been part of Adecco’s acquisition of MPS, which valued that combined entity (including Beeline) at $1.3 billion in 2009. Financial terms of GTCR’s acquisition of Beeline were not disclosed.

DCR Workforce: A Disruptive Provider in the Services Procurement Scene — Year-End Tech Review

gig economy

This post is part of our 2016 Year-End Procurement Tech Review, in which we offer procurement practitioners a bird’s-eye view of some key vendors and their solutions in select categories. This is the last week of this series, and today we are highlighting a company in the services procurement field.

DCR Workforce is a difficult provider to paint into a box. On one level, DCR provides a next generation vendor management system (VMS) solution, more than capable of holding its own against some of the better known providers in the sector on a functional basis addressing basic contingent workforce requirements. But on another level, it delivers much more — a statement of work (SOW) capability that is fundamentally different than other VMS providers in approach and capability; a powerful analytics platform for managing broader services procurement activities; and even a freelancer management system (FMS) and supplier network that offers new ways to manage freelancers and contractors.