MSP Archives - Page 3 of 3 - The Future of Work Exchange

How Does The MSP Model Fit into The Future of Work?

General Insights Solution Providers by Christopher J. Dwyer on 02/28/2022

As solutions, they have been around longer than any other workforce management offering in our industry. As brand names, there may be no bigger logos than those synonymous with some of the largest in our space. And, as the extended workforce continues to grow in size, impact, and scope, they have evolved to meet the dynamic needs of businesses across the globe.

The Managed Service Provider (MSP) model has long been a powerful force across the contingent workforce management and traditional recruitment spectrums, offering an end-to-end, outsourced array of tailored, customized, and global offerings that help businesses tap into key staffing suppliers, standardize extended workforce management operations, and enhance the overall approaches to how talent is engaged and managed.

The non-employee workforce was once less than 20% of the average company’s total talent, as recently as a decade ago. With the stratospheric rise of this labor over the past ten-plus years, we’ve collectively experienced and leveraged a slew of both innovative, consistently-progressive outlets (such as VMS and extended workforce platforms), solutions that are actively capturing the power of direct sourcing, and digital staffing and talent marketplace offerings that enable real-time access to top-tier talent and expertise.

The Future of Work demands that business operations be dynamic, repeatable, and scalable. And, to boot, nearly half of the total global workforce is considered “extended” or “agile” in some manner. For service-oriented solutions like MSPs, the question becomes, “How does this model fit into the Future of Work movement?”

The answer is actually quite simple: an evolved model that blends traditional managed services with technological overlays for various “pieces” of the extended workforce lifecycle, combined with key integrations and partnerships with innovative platforms that address niche areas of talent engagement and talent acquisition.

One just has to look at the current landscape of MSPs ruling the day: some are some of the most mature in our industry and are revolutionizing the way services and technology interact, such as Randstad Sourceright and KellyOCG. RSR is reimagining SOW management and services procurement, as well as its bringing its unique TalentUX tech overlay to areas like direct sourcing. KellyOCG’s digital Helix infrastructure could be a gamechanger.

PRO Unlimited is advancing a “platform approach” that solves every need of the current workforce management program while pushing the criticality of data and intelligence; the solution has made incredible strides within direct sourcing, DE&I, and other key facets of extended workforce management. Talent Solutions TAPFIN is refashioning the market with a fresh approach to SOW management/services procurement and integrated, data-led offerings around workforce advisory and direct sourcing.

Solutions like GRI offer near-unrivaled, powerful, and self-service analytic modules that help clients design better business outcomes (GRI is also a robust provider of Managed Direct Sourcing (MDS) solutions).

Organizations like Atrium and nextSource are transforming how diversity, direct sourcing, and tech-led approaches can help the mid-market thrive. RightSourcing is actively helping a struggling industry (healthcare) take advantage of an evolving labor market whilst offering wide-scale support for those medical facilities that need it coming out of the latest COVID surge.

Pontoon continues to lead with its innovative service delivery models and technological foundations, while Guidant Global is building on its vast expertise, global reach, and progressive direct sourcing offerings. Even newer solutions, like Evaluent, are proving that there’s incredible room for innovation in our industry.

Tomorrow, Ardent Partners and the Future of Work Exchange will unveil the 2022 MSP Solution Advisor, an industry guidebook that will serve as the definitive guide for businesses seeking new insights on the mature MSP solutions market, allow them access to the necessary information to guide solution selection journeys, and enable contingent workforce program leaders to better understand how each MSP offering differentiates itself from the competition.

Why You Should Seek to Collaborate, Rather than Control, with Procurement Processes

Contingent Workforce Procurement by Featured Contributor on 12/06/2021

[Today’s guest contribution was written by Paul Vincent, Global Head of Services Procurement at Randstad Sourceright.]

No one volunteers to wear a straightjacket unless they are a magician.

It is now almost 25 years since I had my defining services procurement experience.

I was working for a global corporation, and, after spending 11 years in different buying roles, I switched to product management and took responsibility for a portfolio that generated about $200M revenue per year. While in this role, I was asked to spearhead a comprehensive change agenda that included reflecting on the external service providers we contracted at the time.

To achieve this objective, I worked closely with the procurement professionals who supported my new division. I had not worked with this team before but I was confident that we could easily collaborate.

I was so wrong.

During our first meeting, I asked for their opinions and ideas on how to best assess the performance of the incumbent suppliers. “We can do anything you want, Paul, as long as it is already written in the service schedules,” I was told.

But the service schedules didn’t seem to be as well defined as they could have been. I looked at this as an opportunity to get creative with the benchmarks.

“Of course, Paul, as long as we don’t ask the suppliers to do something new. We can’t risk them raising the price,” they suggested.

“We should also start to proactively look for alternative sources of supply,” I said.

“No, we can’t do that yet,” they replied.

“Why ever not?”

The procurement team explained that the contracts were not near enough to term and they didn’t want to waste time qualifying any new suppliers until they started the retendering process.

“But I want to explore what is available in the market,” I said, “and I am sure you have other suppliers you can recommend?”

“Well, not really, Paul,” they said. “We are so busy that we can’t monitor the supply market ourselves, so we typically ask stakeholders like yourself to nominate any additional suppliers for the tender.”

I took this as great news and thought it meant I could identify some new suppliers that we could hold exploratory meetings with.

“No. As we just told you, we can’t do that until we start the retendering process.”

This left me frustrated. I felt like the team wasn’t hearing my needs. I was the product owner and I wanted to begin this work. I also wanted to start meeting with the current suppliers to better understand our return on investment from working with them.

“You mean you want to challenge their pricing?” they said.

“No, not necessarily — I just want to know what we’re getting for our money.”

“Well, we would need to have that discussion with them. You are not empowered to talk commercial terms with suppliers, only the procurement team is.”

“But, I am the budget holder. I have a business need for their services. I am accountable for what they deliver. Why can’t I speak with them?”

“Sorry, Paul, you can speak to them about operational matters but when it comes to any commercial topics, you need to leave that to us.”

“I told you already I don’t necessarily want a price reduction, I just want to understand what value they are giving me.”

“Well, we need to be careful about that. You see, if you start asking them to increase their value then they might want more money. So we can avoid that if we control the conversation.”

And so, there you have it. Twenty-five years ago I first encountered that word “control” in a procurement/stakeholder context, and I have been allergic to it ever since.

Despite me being in charge of a product portfolio that brought in $200M a year, despite being accountable for decisions that affected hundreds of operations personnel, and despite being the budget holder of millions, apparently I couldn’t be trusted to speak to a supplier. Through the eyes of that procurement team, I was a maverick because I wanted to go outside of their process to instigate sensible and necessary business actions. I can still vividly remember the exasperation I felt at how little the team seemed to care about what was important to me. There was no collaboration.

In the 25 years since, in my various roles, I’ve seen many services procurement experiences play out similarly. And this naivety has infected managed services providers (MSPs), too.

Don’t set yourself up for failure.

How many procurement professionals are still viewing an SOW management solution as a way to stop their business stakeholders from doing something? How many MSPs focus their solutions on controlling or reining in perceived maverick or rogue behavior? If you have spent any time walking in a stakeholder’s shoes, you will agree that this mentality often leads to failure.

Ardent Partners’ and the Future of Work Exchange’s annual buy-side research, similar to many other contingent workforce research initiatives, consistently cites stakeholder resistance as the number one reason why services procurement solutions fail. And the number one reason stakeholders resist a services procurement solution is because, in reality, way too many of these programs have the characteristics of a straitjacket. So, who can blame them?

How to drive stronger collaboration.

In 2007, I returned to procurement, first as a global category leader and then a consultant. My experiences as a stakeholder had a transformative effect on the contribution I was able to offer to my internal and external clients. Here are the three key things I always tried to keep front-of-mind to improve outcomes:

Be oven-ready for new stakeholders. When primary stakeholders and budget holders rotate, as they very often do, there is a window of opportunity when the procurement team can be significantly valuable during their acclimatization period. What are the current supply arrangements? What are the issues of the day? How could the new stakeholder be a catalyst for increasing supplier value? Maintain a storyboard that can be ready at a moment’s notice. Being oven-ready like this also ensures the procurement lens is outwardly- and future-focused.
Always seek to improve the procurement process. It is critically important that you are regarded as a champion for effective and not outdated buying practices. Stakeholders will want speed and simplicity. Suppliers will want to minimize their cost of sale. True business partnering happens when all parties are invested in each other’s success, so the more you demonstrate a collaborative center of gravity, the more you can expect your stakeholders and suppliers to positively reciprocate.
Don’t expect anyone to volunteer to wear a straightjacket. The word control means to “to exercise restraining or directing influence over someone or something.” Through the lens of a services procurement solution, this means that reluctant participation is all you will be able to realistically expect. Better outcomes will result with stronger collaboration, rather than control.

The only way a services procurement solution can be sustainably successful is if it is insight-led and purposefully designed to enable the stakeholders’ objectives, not to control what they can and can’t do.

Connect with Paul on LinkedIn, or visit Randstad Sourceright for more information on their solutions and offerings.

Why SOW and Services Procurement Should Matter To Your CEO

Business Leadership by Featured Contributor on 10/21/2021

[Today’s guest contribution was written by Paul Vincent, Global Head of Services Procurement at Randstad Sourceright.]

The origins of modern commerce can be traced back to the eighth century in India, where early organizations, called shreni, first started to emerge. Shrenis were associations of crafts persons and merchants and the people who worked for them performed various functions. They provided services such as training, the purchasing of raw materials and the distribution of finished products.

In all the time that has followed since, the world of business has undergone tremendous amounts of change. But the one constant is that few, if any, commercial organizations are ever likely to be totally self-sufficient. They will always need to spend a proportion of their operating costs on some form of external services support.

With more than 1,200 years of practice under our belt, you would think that we’d have the procurement of external services down to a fine art. Requirements would always be well-considered and clearly articulated. Service providers would know exactly what they have to do and how their customers will be judging their performance. Price negotiations would always be fair and equitable. And all parties would be working seamlessly together to create bi-directional best value.

Unsurprisingly, this is not the reality of the business world we live in.

Buying services involves people, and people have different perceptions of value. People have different tolerances of quality. They have differing levels of budget, knowledge, patience, urgency, and ambition.

Every day we talk to organizations who would like to buy services better, who know they should be buying them better. Some are not sure what they need to do and how to do it. Some know what to do but they never quite get around to doing it. Some are ready and willing, but they are waiting for someone else to make the decision for them before getting on with it.

And this is precisely why services procurement should matter to your CEO.

Firstly, because a CEO is ultimately responsible for maximizing shareholder value. And if they are to do that, then they need to be aware of what might be diluting it too. It is highly likely that the assumed ROI of procured services is being negatively offset by the inefficiencies and procrastination embedded in your organization’s buying processes. For example, according to the World Commerce and Contracting association (formerly IACCM), the most frequent source of claims, disputes and disrupted relationships is due to poorly drafted contracts, most notably around the scope and objectives of the work.

Here are five insights that your CEO should have ready access to:

How much is your company spending on external services in their entirety?
How much is your company spending on different types of services?
How has your company’s spend profile changed over time and what is driving that change?
Who are your company’s key suppliers and how strong are your relationships with them?
How do your company’s buying processes compare to recognized best practices?

If these insights are not readily available to your CEO, then it is implausible to claim that shareholder value is being maximized.

The second reason why services procurement should matter to your CEO is because they are the guardians of your organization’s reputation. There are increasing legal and compliance risks associated with the engagement of external service providers, such as disguised employment off-payroll, and so it is crucial that executive leadership are not only wise to these risks but that they implement appropriate and workable mitigation strategies, too.

The third and final reason is because CEOs need to ensure their organizations are continually scanning the market for competitive advantage. Organizations that purposefully adopt a win-win approach to their engagement of external service providers are much more likely to become a customer of choice. Customers of choice are much more likely to be given access to the most current, innovative, and progressive thinking from their service providers because the relationship is mutually beneficial.

Clearly a CEO should not be spending their time down in the weeds of spend analytics, contract negotiations, and supplier relationship management. However, at the macro level, if they can’t be certain your organizational approach to buying services is fit for purpose, it could have serious repercussions for the long-term health of your business.

Connect with Paul on LinkedIn, or visit Randstad Sourceright for more information on their solutions and offerings.

Key Providers for 2021: GRI

Solution Providers by Christopher J. Dwyer on 09/30/2021

The Background:

The Managed Service Provider (MSP) model has long been a powerful solution in the workforce management industry, its longevity owed to decades of success in transforming how companies think about their talent, how they structure contingent workforce management (CWM) initiatives, and how they ultimately drive value from their extended workforce.

Today’s MSP offerings have evolved mightily in recent years to provide their clients with a slew of services designed to facilitate end-to-end management of SOW/services procurement, direct sourcing, payrolling, talent acquisition, and more. In fact, many leading MSP solutions are reimagining their services suites to reflect the dynamic changes occurring in the greater world of work and talent.

GRI is one of those solutions.

Why They Were Selected:

Many of the globe’s market-leading managed services offerings have a similar slew of products that are only slighted differentiated based on such attributes like service model delivery and sector-specific aspects. One key differentiator of those MSPs that stand out from the pack is the ability to provide its customers with not just traditional value, but true workforce and business agility through a focus on talent, technology, and transformative thinking.

Geometric Results, Inc. (GRI) has long been a household name in the MSP space, and for good reason: its Envision Analytics is a self-service portal that blends powerful business intelligence with real-time talent data. Predictive analytics, neural machine learning models, and hundreds of data sources position Envision Analytics as one of the contingent workforce industry’s deepest, most robust reporting-led offerings.

In addition, its “Managed Direct Sourcing” approach allows customers to build flexible direct sourcing programs and strategies that traverse beyond simple talent pools; GRI’s MDS product is one of the market’s most forward-thinking direct sourcing offerings and positions clients’ direct sourcing programs with a 360-degree brilliance of agility through a strong convergence of industry expertise, human-led processes, and Best-in-Class automation.

In Their Own Words:

GRI works exclusively for our customers and transcends the industry standards. The client comes first and our role as an exclusive advocate is absolute and unbiased. We are the only MSP that is (1) singularly focused (2) vendor-neutral, (3) free of all channel conflict, and (4) not controlled by a staffing company.

GRI focuses solely on delivering innovative, Best-in-Class workforce solutions as an independent MSP provider. And in an industry that largely lacks transparency, and is steeped with channel-conflict, no other workforce solutions company can back up this claim!

We offer a direct sourcing solution that is native to our MSP. It creates meaningful cost savings and reduced time-to-fill beyond the typical program while improving worker quality. It works well because we are motivated and incentivized by its success; no other MSP can confidently stake that claim.

We actually innovate — it’s not just an overused and largely misunderstood word at GRI. The ‘box’ doesn’t direct us, and therefore it’s much easier for us to think outside of it. And to think instead about technologies, talent acquisition models and processes as well as the collective ecosystem that will most benefit our clients.

The Outlook:

GRI is positioned as an MSP that will thrive in the years ahead due to its commitments to flexibility, innovation, and the Future of Work. Its unique Managed Direct Sourcing offering balances the necessary human elements with a deep technology stack and platform ecosystem, while its Envision Analytics tool is one of the industry’s finest talent intelligence solutions.

As the world of talent and work continues to evolve and adapt and require talent- and intelligence-led offerings, GRI will continue to establish itself as a preeminent source of workforce management innovation.

Key Providers for 2021: nextSource

Solution Providers by Christopher J. Dwyer on 09/22/2021

The Background:

With non-employee talent workforce comprising 47% of the total global workforce, businesses across the globe are actively finding that they require advanced tools and next-gen solutions to effectively manage a sector of talent that is growing in both size and prominence. The Managed Service Provider (MSP) model has long been the veteran presence in the contingent workforce management (CWM) solutions market, an “old standby” that has long delivered value in terms of cost savings, workforce visibility, and better access to top-tier talent. MSPs have long been a trusted solution in the operational and strategic management of extended talent, as many businesses have outsourced the day-to-day management of contingent labor to these offerings, who, in turn, facilitate talent acquisition, services procurement (and SOW management), staffing supplier optimization, etc

However, as businesses became more advanced in how they structure their workforce, how they leveraged self-service functionality, and how they tapped into alternative talent channels, the MSP model needed to evolve alongside their customers to continue driving that effective level of wide-scoping value across all facets of workforce management. In fact, some MSPs are placing innovation within its core and cascading a progressive mindset into the fabric of its offerings.

Enter nextSource.

Why They Were Selected:

Service-based offerings are often required to do more to stand out from the progressive technology platforms in today’s complex solutions marketplace. The MSP model has long relied on traditional services (such as payrolling, staff augmentation, supplier management, etc.) to provide immediate value to the world’s biggest CWM programs. However, today’s programs are much, much more intricate now than they were even just a few years ago, considering the criticality of direct sourcing, the complexities of diversity, equity, and inclusion (DE&I), and the overall need for CWM leaders to be able to tap into on-demand, top-tier talent.

nextSource has over 20 years of experience as a leading provider of managed services, but it is their unique blend of data science and forward-thinking, intelligence-driven offerings (that sit on top of its end-to-end MSP model) that enables the solution as a key provider for Future of Work-era talent programs.

In Their Own Words:

For more than two decades, the mission of nextSource has remained unchanged: advance the ways companies connect with talent. Today’s uncertain business environment is marked by talent scarcity in the midst of high unemployment, shifting demographics, increased talent acquisition and compensation costs, and technology that enhances and eliminates jobs at all skills levels. We navigate these workforce challenges to help our clients find, manage, and keep talent.

Traditional approaches to contingent workforce management produce poor results in this new competitive environment. As a vendor-neutral provider of solutions, we partner with the industry’s best staffing agencies, providing the support needed for them to deliver the talent needed by our clients. We augment their capabilities through the establishment of nextSourcing™ talent communities that draw from sources not reached through traditional sourcing channels to increase engagement of women and minorities. Working with our clients, we create a worker experience that is based on pay equity, revalued work, caregiving, and opportunities for challenging, career-building assignments.

Every Managed Services Provider, Employer of Record, and Agency of Record program applies our Entry Point Methodology, giving clients choice regarding their preferred level of service. And, annual Program Agility Assessments ensure that every program continuous innovates and evolves.

The Outlook:

It’s no secret that the world of work and talent has been permanently transformed. Hiring managers must leverage nuanced tools and strategies to find the best-fit, best-aligned talent, while both procurement and HR executives are forced to reimagine how they manage their total workforce in the face of foundational change. The Future of Work Exchange Report for 2021 research study found that Best-in-Class organizations are 66% more likely to leverage MSPs than all other businesses, a statistic that reinforces the continue value these models bring to the world of agile workforce management.

nextSource offers both traditional and forward-thinking solutions for its clients, with its Program Agility Assessments serving as an incredible differentiator in the application of data science and true workforce intelligence to drive educated and transformative recommendations for long-term contingent workforce management success. With its end-to-end approach balanced with dynamic offerings, nextSource is well-positioned to continue delivering progressive value in the evolving world of work and talent.

The Future of Work Exchange Meets “The Deep End”

Business Leadership Contingent Workforce Solution Providers Talent by Christopher J. Dwyer on 09/08/2021

The business world is consistently evolving, with a global pandemic setting off accelerants that are pushing the boundaries of how businesses address how work is done. Future of Work Exchange research points to a variety of factors that enterprises are focused on today in regard to how they are transforming the way work gets done, including:

The transition from manual- and paper-based tactics within workforce management to a world of a digital talent acquisition and recruitment.
The prevalence, benefits, and long-term impact of remote work and hybrid work models.
The rise of empathy-led business leadership and a greater focus on worker well-being/wellness.
The critical interjection of diversity, equity, and inclusion (DE&I) into core business operations, and;
The continued growth and impact of the agile workforce.

I recently had the pleasure of joining Workforce Logiq’s Chief Solutions Officer, Geoff Dubiski, for the company’s highly-regarded The Deep End vodcast/podcast series. Click below to enjoy FOWX meeting The Deep End for insights on empathy in the evolving world of work, why the hybrid work model is here to stay, and some peeks of Ardent Partners’ new Future of Work Exchange Research Study for 2021:

Services Procurement and the Future of Work: A Conversation with Paul Vincent, Global Head of Services Procurement at Randstad Sourceright

Contingent Workforce Procurement Solution Providers Talent by Christopher J. Dwyer on 08/16/2021

Last week, Randstad Sourceright announced the appointment of Paul Vincent as its Global Head of Services Procurement. In this Future of Work Exchange feature, Paul joins us to talk about how he views the current SOW management landscape, how this exciting topic fits into the greater Future of Work movement, and his new responsibilities at Randstad.

Christopher J. Dwyer: Hi Paul, it is great to chat with you once again, and congratulations on your new role. Pandemic aside, we’ve definitely seen some changes in the services procurement landscape over the past couple of years. Curious to hear your thoughts on these changes and how you feel MSPs can effectively tackle these challenges.

Paul Vincent: It’s good to catch up with you again, too, Chris, and let me start by commending you on the launch of the Future of Work Exchange. The site looks really smart, and I am sure it will become a valued resource for the talent industry.

The services procurement marketplace has unquestionably become more liberated during the past couple of years. Every MSP now seems to be selling some kind of SOW solution and buying organizations are clearly becoming more receptive to a proposal for help. VMS providers are building more tailored functionality into their platforms and there is a growing array of complementary digital tools which can further strengthen an MSP’s product offering if positioned correctly.

So, we are definitely entering a period where SOW-based spend is going to be increasingly supported by workforce solutions providers in some way. The $64M question is going to be: what way is the best way?

This is where I think the market gets most interesting. There is still quite a big difference between an MSP who really understands the nuances of the services procurement landscape versus one that fundamentally still treats this part of the workforce as a subset of an organization’s contingent staffing population.

For example, when you see an MSP only talking about classification, compliance, and control, then this is a tell-tale sign that they are not really thinking about how to best serve the people who have the need and budget for the services themselves. These people, who after all are the primary stakeholders for any SOW management solution, need an MSP who can give them speed, simplicity, ready access to the highest-performing and most innovative service providers, and ultimately the best bang for their budgetary buck.

CJD: One of the things I admire about your work in the market all these years is that you have a deep understanding of both the client and service provider sides of SOW and services procurement. What are two or three of the most valuable insights that this experience has given you?

PV: This is a tough question, Chris, as there are so many insights I could share. However, if you pushed me for my top three then I would probably select these ones.

Firstly, it is important to remember that price and perceived value are very different things. It is a common misconception that users of SOW-based services will want to pay as little as possible and this is a mentality trap that procurement professionals and MSPs can get themselves into. In a staff augmentation world, hiring managers typically don’t want to pay more than the prevailing market rate. In a services procurement world, business users want to pay an appropriate price and as it is their budget, then ultimately, they will need to decide on the price that most aligns with the value they perceive they are going to get from the service provider in return. The role of a good procurement advisor is to help their business stakeholders to identify and then critically evaluate the various commercial options open to them. Then they need to ensure that their stakeholder’s preferred option is properly encapsulated within a well-documented statement of work.

Secondly, whilst the SOW management triangle has three interdependent relationships (i.e., between the business user, centralized procurement, and the service provider), the most crucial relationship is always the one between whoever wants the work done and whoever is going to be doing the work. An effective SOW management solution will facilitate this relationship so that it is as commercially agile as possible. Those procurement functions and MSPs who seek to control this relationship instead will never be sustainably successful.

Finally, I passionately believe that an MSP should be delivering value throughout the entire SOW life cycle. However, in my experience, many MSPs seem to limit their boundary lines to the supplier selection and contracting phases in the process only. I have never understood this – because there is a huge amount of value that can be offered across the project definition, delivery, and evaluation phases, and this value often just gets left on the table.

CJD: These are great insights, Paul, and what resonates with me in particular are your observations about the breadth of the MSP value proposition when it comes to services procurement. So, turning to your new role and an obvious question is: what has attracted you to Randstad Sourceright?

PV: I am thrilled to be joining Randstad Sourceright and there were two main reasons why I could not let this opportunity pass me by. The first is the hugely ambitious and exciting vision that CEO Mike Smith has set for the organization, and in particular the impact and contribution that he expects services procurement to play. The more Mike talked me through his strategic intent for services procurement, the more I felt this was a journey that I wanted to be part of.

Secondly, I will have a chance to work with a very skilled team. Randstad Sourceright already has a number of sales, operations, and subject matter experts working on SOW-related activities across the organization and further recruitment activity is underway. All of this talent will now be unified globally under my leadership and a joint strategic vision focused on creating measurable business value for our clients. I am especially going to enjoy working with Scott Brewer, who will run our SOW center of excellence. Scott has laid some impressive foundations during the past 18 months and there is a strong platform to grow from.

CJD: This role sounds like the perfect fit for you. What do you see as your key priorities during the first few months?

PV: Well, like in any new role there are going to be many people that I will need to get to know across the organization. But I expect the bulk of my time will be spent getting a really good understanding of our current SOW proposition and what we are delivering across the active client programs. From what I have seen, I think the offering is already pretty compelling, particularly from an analytics point of view, but as I finalize our new team structure and future ways of working, I will get a feel for the areas which might have scope for further development.

CJD: Maybe it’s because I’ve known you for so long, but I have to imagine that you already have some ideas as to how you would like to see RSR’s SOW offering evolve…am I correct?

PV: You’re right, you know me well and I do have some ideas already germinating, but it’s important that I take the time to really understand the current offering first and to gather a range of input from across the organization. What I can tell you is that Mike has set me a very clear objective – which is for Randstad Sourceright to be regarded as the undisputed market leader driving services procurement value for our customers. I am very energized by this goal, and I have every intention of delivering it!

CJD: I am very sure you will, Paul, and we look forward to hearing more from you here on the Future of Work Exchange. Best wishes on your new role at Randstad Sourceright, and thanks again for taking the time so soon after your new appointment.

Connect with Paul on LinkedIn, or visit Randstad Sourceright for more information on their solutions and offerings.

Continuing its Unlimited Evolution, PRO Unlimited Announces Acquisition by EQT Partners

Contingent Workforce Direct Sourcing Diversity and Inclusion HR Procurement Solution Providers Talent Technology and Innovation by Christopher J. Dwyer on 07/01/2021

Earlier this week, contingent workforce management (CWM) solution PRO Unlimited announced that it has partnered with EQT Partners, who will acquire the company from Harvest Partners and Investcorp. When the acquisition officially closes in the second half of 2021, EQT Private Equity will be the majority shareholder, with Harvest Partners continuing as a large shareholder and management retaining a minority stake in the company.

This major transaction follows a year of aggressive market activity by the veteran MSP and VMS suite of solutions, which has undergone a seismic transformation since mid-2020. A longtime leader in the CWM technology arena, PRO continues to deliver on its promise to reimagine the end-to-end offerings of its core services and automation and become a true “platform” for agile workforce management activity.

“The team at EQT has been following the macro trends around the world of talent and work. They, much like us, see the contingent workforce segment growing at a rapid rate and becoming more and more strategic,” said Kevin Akeroyd, CEO of PRO Unlimited. “PRO was uniquely positioned here because we have the technology, the data, the analytics, coupled with the people / service assets in place, which has been a cornerstone of our MSP business, to not only satisfy the elements of what enterprises need today to manage their agile talent, but also having all of those critical elements inside the same platform.”

In several discussions with Akeroyd over the past several months, PRO’s CEO outlined an assertive range of objectives that mainly included a technological revamp, more dedicated offerings within the diversity and inclusion arena, and on-demand facilitation of data, intelligence, and workforce agility. The acquisition by EQT will allow PRO’s executive team to capitalize on an evolving market while enabling quicker time-to-market for burgeoning offerings for SOW/services procurement and direct sourcing, as well as its unique RatePoint solution.

“This is going to allow PRO to do what we want to do much faster and on a larger, global stage,” Akeroyd told CPO Rising. “EQT didn’t come here to change us or alter the fundamentals of who we are or what we want to accomplish. The vision that we had last year (becoming an end-to-end platform for all things contingent labor) can be realized much quicker with the investment from EQT.”

Historically, PRO Unlimited has not been known for major M&A activity, but that line of thinking changed when Akeroyd joined the organization last year, setting off a string of market-shifting moves that positioned the veteran solution for a major transformation in the months afterwards.

“Our organization went nearly 30 years without a major acquisition. It wasn’t until recently [Editor’s note: PRO acquired PeopleTicker and the Brainnet Group in 2020 and 2021, respectively] that the company started to shift its acquisition strategy,” Akeroyd said. “With EQT as a partner, we can accelerate M&A activity much more aggressively. If we need to buy, we can do that. If we need to build, they’ll support us. And we’ll have the power to partner with those solutions that are complementary to PRO’s end-to-end suite.”

The acquisition is certainly timely, as upcoming Ardent Partners research finds that the agile workforce continues to grow in size, impact, utilization, and prominence: nearly 47% of the average organization’s total workforce is now considered “extended” or “non-employee,” reinforcing the notion that businesses require more comprehensive, dynamic tools to effectively converge traditional aspects of contingent workforce management with the deeper elements (such as direct sourcing, services procurement, etc.) required to maximize the inherent value of the agile workforce.

“The contingent workforce is going to lead the economic recovery. If you look at the numbers and employment data regarding traditional workers and FTEs, they aren’t going up…but the agile workforce is,” said Akeroyd. “The Global 2000 enterprise is alive and well, and they’re largely thriving in this market due to their reliance on white-collar, remote, highly-skilled extended talent. PRO is enabling the average enterprise to achieve this level of success on the contingent workforce front; we are a leader in this solutions industry and what EQT has done is allow us to be a bigger, more impactful part of how businesses harness the power of their agile workforce across the globe.”