2tues 1445 pavillion vms msp landscape renniee …€¦ ·...
TRANSCRIPT
©2016 by Crain Communications Inc. All rights reserved.
ResearchThe 2016 VMS & MSP Landscape Series
Speaker:§ Elizabeth Rennie, Global Workforce Solutions,Research Director, CCWP, Staffing Industry Analysts
TUES | 2:45 PM | PAVILION
©2016 by Crain Communications Inc. All rights reserved.
Revised Report Structure2015 FROM:
§ Covering 23 VMS vendors § Covering 28 MSP vendors
§ Covering 15 VMS vendors
VMS & MSP Landscape
VMS Differentiators Report
§ Covering 15 MSP vendors
MSP Differentiators Report
VMS Market Developments
MSP Market Development
Total Talent Acquisition Market Landscape NEW
2016 TO:
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q1
Q2
Q4
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q2
Q3
Q4
RPO Landscape and Service Developments NEW
©2016 by Crain Communications Inc. All rights reserved.
AGENDA
1. Executive Summary2. Definitions & Research Methodology4. Drivers and Benefits5. Vendor Landscape and M&A Activity6. Developments: New Offerings7. Geographical Capability and Targeting8. Vendor Profiles
Part 1: Drivers, Innovations & Geographical Capability Part 2: Market Sizing
AGENDA
1. Executive Summary2. Research Methodology4. Market Overview• Global Market Size and Growth • Size by Region • Size Spend by Sourcing Model • Size by Program Type • Technology Adoption• Funding & Pricing Models • Size by Buyer Market Size & Spend Size• Size by Industry• Size by Occupational Classification
5. Vendor Landscape6. Definitions
©2016 by Crain Communications Inc. All rights reserved.
Report High Level Findings
VMS Market Developments
MSP Market Development
Total Talent Acquisition Market Landscape NEW
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q1
Q2
Q4
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q2
Q3
Q4
RPO Landscape and Service Developments NEW
©2016 by Crain Communications Inc. All rights reserved. 5
1990-‐2006 2006 – 2010 2008-‐2016 2014-‐ and beyond• Supplier scorecards• Preferred Supplier Lists (PSL)
• Rate cards• Emergence of SOW • On/off boardingprocesses
• Increasing global capability
• Beginning analytics
• Worker tracking introduced
• Talent pooling• Onboardingprocesses for direct sourcing
• More benchmarking across workforce segments
• Open architecture with API’s• Market wide benchmarks• Better decision making with focus on analytics
• Increased functionality to decision tree sourcing
• FMS integrations• Total Talent Management delivered with improved integration with or adoption of ATS type functionality
Supplier Centric Marketplace CentricTalent CentricFOCUS:
VMS Part 1: Drivers, Innovations & Geographical Capability
Evolution:
©2016 by Crain Communications Inc. All rights reserved. 6
VMS Part 1: Drivers, Innovations & Geographical Capability
OrganizationalChallenges
VMS Focus
©2016 by Crain Communications Inc. All rights reserved. 7
VMS Part 1: Drivers, Innovations & Geographical Capability
Supplier Landscape:
©2016 by Crain Communications Inc. All rights reserved.
Number Serviced Regions Targeting
Vendor Countries
No. Countries with Full Invoicing
Lang-‐uages Americas Europe
Middle East/ Africa
Asia Pacific
Extensive (>50)Expanding (10 -‐ 50)Emerging (<10)
VMS Part 1: Drivers, Innovations & Geographical Capability
Geographical Capability:
©2016 by Crain Communications Inc. All rights reserved.
1. Availability of analytics across different worker types (Temp vs perm vs IC etc.) with greater data aggregation across multiple client bases for benchmarking
2. Greater integration across different platforms to better support sourcing decisions across worker types
3. Supply and demand being embedded in workforce planning programs for proactive forecasting
4. Marketplaces developed across SaaS platforms to streamline processes5. Direct sourcing functionality alongside the supply management6. Talent pools for contingent workers to increase with improved marketing7. Functionality to support employee referrals and recommendations. 8. Mobile apps for workers and managers to support entry of data and approvals as
well as increased use of automated invoices and electronic invoices9. Program growth in existing clients10. RFX capability
VMS Part 1: Drivers, Innovations & Geographical Capability
Predictions:
©2016 by Crain Communications Inc. All rights reserved.
Report High Level Findings
VMS Market Developments
MSP Market Development
Total Talent Acquisition Market Landscape NEW
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q1
Q2
Q4
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q2
Q3
Q4
RPO Landscape and Service Developments NEW
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
Annual Growth +20% +15% +30% +59%
Global North America Europe Rest of the World
VMS Global Market Spend by Region 2015 (billions)
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
$0
$20
$40
$60
$80
$100
$120
2014 2015
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
VMS Global Market Spend Work Arrangement 2015 (billions)
$36.80
$83.26
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Statement of Work
Temporary Employees & Independent Contractors
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
VMS Spend by Buyer FTE Headcount Size and Buyer Spend Size (%)
22%
10%
15%30%
24%
Less than $50m$50-‐$100m$100-‐$300m$300-‐$1,000m> $1,000m
17%
10%
9%
63%
Less than 2,000 Employees (FTE)2,000-‐4,999 Employees (FTE)5,000-‐9,000 Employees (FTE)10,000+ Employees (FTE)
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
VMS Market by MSP Service Model (%)
17%
42%
41%
Vendor's Own MSPInternal Service Program Third Party MSP
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
Estimated VMS Functional Adoption and Technical Integrations across Buyers
Adoption Rate of VMS Functionality
Agency Supply & Management of Workers including Payrolling üüüü
Contingent Talent Pools üüü
Statement of Work (Administration only) -‐ Emerging üü
Statement of Work (Sourcing & Administration) -‐Emerging ü
Worker Tracking -‐ Emerging ü
Integrated workforce planning (Contingent & Permanent) -‐ Emerging ü
Adoption Rate of VMS Integrations
Single Sign On üü
Integration with External Analytics Tools üü
Integration with SAP SuccessFactors üü
Integration with PeopleSoft (Oracle) üü
Integration with Workday üü
Integration with Taleo (Oracle) ü
FMS Integration* ü
©2016 by Crain Communications Inc. All rights reserved.
81%
8%
11%
Percentage of SpendFixed Monthly FeeOther
VMS Part 2: Market Sizing
VMS Market by Program Funding and Pricing Model
95%
87%
66%
88%
4%
4%
1%
5%
9%
30%
11%
0% 20% 40% 60% 80% 100%
LATAM
APAC
EMEA
N.America
Supplier Funded Combination Client Funded
©2016 by Crain Communications Inc. All rights reserved.
$22.14
$18.59$16.35
$14.72
$10.73$8.15
$6.25 $6.11 $6.00 $5.27 $4.53$1.26
$0
$5
$10
$15
$20
$25
VMS Part 2: Market Sizing
VMS Market Size by Industry (billions)
©2016 by Crain Communications Inc. All rights reserved.
VMS Part 2: Market Sizing
VMS Market by Occupational Skill Category (%)
27%
23%
11%
9%
8%
11%
6%
4%
Information Technology Industrial
Office/clerical
Finance & Accounting
Other Professional
Engineering & Design
Clinical/Scientific
66%
34%
ProfessionalCommercial
©2016 by Crain Communications Inc. All rights reserved.
Questions?
©2015 by Crain Communications Inc. All rights reserved.
©2016 by Crain Communications Inc. All rights reserved.
Report High Level Findings
VMS Market Developments
MSP Market Development
Total Talent Acquisition Market Landscape NEW
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q1
Q2
Q4
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q2
Q3
Q4
RPO Landscape and Service Developments NEW
©2016 by Crain Communications Inc. All rights reserved.
1990-‐1999 2000 – 2008 2008-‐2016 2014-‐ and beyond• Maximizing scale and volume discounts through Master Vendor approaches• Emergence of SOW • On/off boarding processes• Risk mitigation through automation
• Growing globally
• Emerging analytics
• Worker tracking introduced
• Rise of Vendor Neutral MSP enabled by VMS technology
• Levelling the playing field for strategic suppliers
• Increasing supplier visibility of performance
• More benchmarking across suppliers
• Emergence of centers of excellence and training programs to support MSP program managers in contingent workforce solutions
• Market wide benchmarks across all worker types (SOW, FMS, direct hire)
• Better decision making with focus on analytics
• Candidate pooling• Incorporation of digital sourcing solutions that include FMS offerings
• Direct sourcing for work to, where possible, squeeze out margins
• Increasing MSP value through offering more strategic TTA
• Supplier partnership and success strategies over vendor neutralityFOCUS:
MSP Part 1: Drivers, Innovations & Geographical Capability
Evolution: Sourcing Leveraging Scale Sourcing through Neutral Models Sourcing for Work
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 1: Drivers, Innovations & Geographical Capability
OrganizationalChallenges
MSP Focus
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 1: Drivers, Innovations & Geographical Capability
Supplier Landscape:
©2016 by Crain Communications Inc. All rights reserved.
Number Serviced Regions Targeting
Vendor Countries
No. Countries with Full Billing
Lang-‐uages Americas Europe
Middle East/ Africa
Asia Pacific
Extensive (>30)Expanding (10 -‐ 30)Emerging (<10)
MSP Part 1: Drivers, Innovations & Geographical Capability
Geographical Capability:
©2016 by Crain Communications Inc. All rights reserved.
Report High Level Findings
VMS Market Developments
MSP Market Development
Total Talent Acquisition Market Landscape NEW
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q1
Q2
Q4
Part 1: Drivers, Innovations & Geographical Capability
Part 2: Market Sizing
Part 3: Market Differentiators
Q2
Q3
Q4
RPO Landscape and Service Developments NEW
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
Annual Growth +13% +11% +14% +20%
Global North America Europe Rest of the World
MSP Global Market Spend by Region 2015 (billions)
©2016 by Crain Communications Inc. All rights reserved.
New Definitions• Contingent RPO is a type of Managed Service Provision (See Managed Service Provision)
whereby the supplier sources contingent labor through client-‐dedicated recruiters in an outsourcing mode. These recruiters are trained on the company business and employer brand to attract candidates and any candidate data derived as part of the sourcing process are owned by the client. As such, the candidate database is the IP of the client which is returned at the end of a contract. Also, unlike traditional Master Vendor MSP models, the candidate databases are not shared with other clients and candidates are not offered roles in other companies. The majority of activity for the Contingent RPO supplier relates to performing services that deliver a high percentage of direct sourcing through this model, rather managing and sourcing suppliers which strongly features in a Vendor Neutral MSP model. Further, unlike other MSP models, Contingent RPO pricing is typically volume based, with a price per candidate placed, rather than being based on spend. This model is closer to a Direct Sourcing model (See Direct Sourcing) except that the service is outsourced to a third party.
• Worker Tracking is where contingent workers are logged and tracked (location, time) in the VMS, but invoicing is not in scope. The rationale is to increase visibility of contingent workers and support compliance to onboarding/off boarding processes but invoicing may not be practical to include in scope because of other factors such as volumes, system capability or local regulations.
MSP Part 1: Drivers, Innovations & Geographical Capability
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
$1.14
$19.90
$0.19
$10.18
$20.36
$48.28
$0 $10 $20 $30 $40 $50
Outsourced Service Management
Statement of Work
Contingent RPO
Hybrid
Master Supplier MSP
Vendor Neutral
Temporary Employee or Independent Contractor
MSP Global Market Spend Work Arrangement and Sourcing Model 2015 (billions)
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Service Adoption across Buyers (measured by % share of workers)
5%
6%
4%
6%
6%
11%
67%
0% 20% 40% 60% 80% 100%
Worker tracking only (no timesheet)
Worker tracking with timesheet process only
SOW project -‐ sourcing & admin
SOW project -‐ administration
Stategic Workforce Planning
Contingent Talent Pool Mgmt
Supplier Management including billing
N=15
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
68%
15%
11%
6%
Over 10,000 Employees (FTE)
5,000-‐9,000 Employees (FTE)
40%
12%25%
19%
4%
Less than $50m$50-‐$100m$100-‐$300m$300-‐$1,000mOver $1,000m
MSP Spend by Buyer FTE Headcount Size and Buyer Spend Size (%)
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Share of Clients which blend with RPO services and Share which blend with Proprietary VMS (weighted by size of vendor) (%)
97%
3%
MSP with No RPO BlendingMSP Blended with RPO
66%
34%
MSP with No VMS BlendingMSP Blending with Provider Proprietary VMS
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Providers supporting different VMS Systems (%)
70%
20%
45%
60%
60%
70%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other
Lumesse TalentLink
Beeline
IQNavigator
Peoplefluent VMS
Proprietary
SAP Fieldglass
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
VMS System Utilization by MSP Worker Headcount Volume (%)
40%
20%
14%
14%
1% 3%7%
SAP Fieldglass
IQNavigator
Beeline
Proprietary
Lumesse TalentLink
Peoplefluent VMS
Other
©2016 by Crain Communications Inc. All rights reserved.
81%
13%
2%4%
Percentage of SpendPer WorkerMonthly FeeOther / Combination
MSP Part 2: Market Sizing
MSP Market by Program Funding and Pricing Model
59%
71%
78%
81%
10%
21%
6%
15%
31%
7%
15%
3%
0% 20% 40% 60% 80% 100%
LATAM
EMEA
N.America
APAC
Supplier Funded Other Client Funded
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Market Size by Industry (billions)$21.95
$17.08
$10.49$7.57 $7.60
$4.99 $4.33 $4.29 $4.45 $4.41 $3.64 $3.00 $2.96$1.55 $0.68 $0.61
$0
$10
$20
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Market by Occupational Skill Category (%)
29%
18%
13%
12%
11%
7%
6%5%
Information Technology IndustrialOther ProfessionalOffice/clericalEngineering & DesignFinance & AccountingHealthcareClinical/Scientific
58%
42%
Professional
Commercial
©2016 by Crain Communications Inc. All rights reserved.
MSP Part 2: Market Sizing
MSP Market Delivery Models (%)
57%43%
Employees working offsiteEmployees based on client site
44%
40%
12%
4%
Onshore -‐ Client site or Remote
Onshore -‐ service center
Nearshore
OffshoreN=15
N=16
©2016 by Crain Communications Inc. All rights reserved.
Questions?
©2016 by Crain Communications Inc. All rights reserved.
Two Easy Ways to Give Feedback§ Rate sessions on the Mobile Community (all sessions)§ Fill out Evaluation Card on your chair (concurrent sessions)
TUES | 2:45 PM | PAVILION
©2016 by Crain Communications Inc. All rights reserved.
Coming up Next at 3:45
• General Session – Summerlin Ballroom51 in 50
• RELAX at Workforce Solutions Industry Party– Poolside at 5:00