Across the continuum of contingent workforce management (CWM), few solutions have had the staying power of the Managed Service Provider (MSP) model. In fact, over the past fifteen years, they have represented one of the top two solutions adopted and leveraged by CWM programs [alongside Vendor Management System (VMS) platforms]. After the UK-based staffing group Impellam acquired Bartech Group in late 2015, one of the big questions around the deal was the impending merger between Bartech’s Workforce Management Solutions/Managed Solutions brands and another MSP giant, Guidant Group (owned by Impellam).
The merged solutions have completed their rebrand as Guidant Global, and we had the opportunity to sit down with Brian Salkowski, President, Americas to discuss the news, the evolution of the MSP model, and much more:
Christopher Dwyer: Congratulations on the rebrand. What is the ultimate mission of Guidant Global?
Brian Salkowski: Thank you so much. Simply put, the ultimate mission of Guidant Global is to challenge and transform the quick-fix, impersonal, and rush-to-revenue approach which prevails across the MSP market today by delivering solutions in a better way.
CD: The MSP model has been evolving to meet the dynamic needs of the average enterprise. How do you feel GG is equipped to deliver progressive value in the market?
BS: The industry is crying out for someone to deliver MSP services in a better way and – thanks to Guidant Global’s unrivalled experience, people-centric approach, and core values – we are best equipped to deliver services which reflect clients’ dynamic needs. We are led by our long-held values and guiding principles: we challenge conceptions, we have a global perspective, we think agilely, we are inventive, and we work collaboratively.
We have unprecedented insight into the world at work: Guidant Global works in over 80 countries, managing over 200,000 engagements for over 90 clients each year. We’re keepers of the bigger picture and we assist our clients in sourcing, assessing, and implementing complex talent solutions which engage contingent workers, consultants, and freelancers at a time when talent shortages are rife. We are partners, advisors, and strategic thinkers who deliver results.
CD: What’s the role of the MSP in the Future of Work/changing world of work?
BS: According to the World Economic Forum’s Future of Jobs Report 2018, almost 50% of companies expect that automation will lead to some reduction in their full-time workforce by 2022, based on the job profiles of their employee base today. Meanwhile, individuals are increasingly shunning full-time, permanent positions in favor of more agile ways of working. In the United States, the freelance workforce is growing three times faster than the overall workforce and the number of freelancers in the European Union (EU-28) doubled between 2000 and 2014.
The growth of the Gig Economy is just one element of a wider paradigm shift which is impacting the entire work ecosystem globally. We are witnessing a rise in the number of older people in employment, for example, with the UN anticipating that those aged 55-to-64 will represent 15% of the workforce in the next decade.
The fourth industrial revolution is not only impacting skills demand, it is also facilitating cloud-based working, enabling individuals to work in more flexible ways. Our workforces are also increasingly global: a recent study by Wakefield Research found that 83% of gig-workers in the UK, US, and Singapore are interested in relocating to another country for a contract job.
Against this backdrop, it is clear that the new world of work needs better business solutions delivered through a forward-thinking, genuinely people-driven approach. MSP providers must be able to manage flexible, global workforces in an agile way, by taking a human approach to enable businesses to thrive in a robot age.
Now is the time to take bold action and break through existing conventions to challenge the status quo to deliver better results, outcomes, and solutions for all. We need to be inventive – we can no longer do things the way they’ve always been done. We need to harness technology to deconstruct what ‘work’ is for our clients to determine their needs in real-time.
Any good business is only as good as its people and we are moving beyond the binary to deliver a flexible service model which accommodates the changing needs and expectations of our clients, both now and in the future.
CD: Services procurement and SOW-based work comprise the largest sub-group of contingent labor today. Why do you feel the MSP model is ideal for managing this subset of the contingent workforce?
BS: The MSP model can offer enormous benefits to both the buying organization and solution providers for this subset. There are quick wins immediately wherein the MSP can leverage the vendor management system to streamline processes, enhance expense controls, and bring action-oriented insights based on analytics. However, one of the largest value drivers of the MSP for SOW extends from our unique position as a single and consistent entry point for new service requests. By gathering detailed scope and requirements and a clear understanding of desired outcomes, we are in an ideal position to provide convincing guidance on the best possible sourcing strategy. In this situation, the MSP has no vested interest other than a better outcome for the requester and the customer. We often find that managers are “stuck in a rut” and reflexively default to a provider or purchase strategy. We are able to provide consultation that can drive a decision to hire an FTE, engage a SOW provider, enlist staff augmentation resources, or outsource delivery based upon a rational consideration set considering factors that include skill requirements/availability, cost, intellectual property, capability and more.
Through buy optimization, we have been able to deliver better outcomes and real savings that far exceed normal competitive bidding. In fact, direct savings have been as high 30%+ in some circumstances, and our experience has shown that, on average, 20% of SOW resources could be more effectively engaged through staffing channels. The MSP model is ideal for the management of the procure-to-pay process and can offer an unparalleled, comprehensive view of all external resources within a work ecosystem.
CD: Why is it critical for an MSP to have the ability to balance both cost savings and talent quality for its clients?
BS: The perception of “value” always brings an element of subjectivity, however our extensive analysis of the current market leaves no doubt that clients demand quality talent above all else. The ‘recruitment by numbers’ mentality that once dominated the industry is now a thing of the past and there is a greater desire for strategic thinking and solutions.
Clients don’t want an “off the shelf” solution – they want to be challenged by market leaders with breadth and depth of global experience. Cost effectiveness comes not from scrimping or cutting corners, but as a byproduct of innovation and agile thinking.
CD: Looking ahead, where do you see contingent workforce management headed in the years to come?
BS: While no one knows what the future holds, there is no doubt that workforce management strategies will become increasingly global in the coming years. Our research underlines the fact that international expertise is desirable even to those not currently seeking an international solution due to value of experience, applicability of lessons-learned, and development of innovations that can be broadly exported.
We will continue to see new channels emerge as viable strategies for sourcing talent, and intelligent technology will continue to make both sourcing and selection more efficient and effective. We see these as huge opportunities versus threats and are excited by the new possibilities.
However, in the age of automation, the “human” ability to listen, understand, advise, and partner will also become increasingly important. People will always be the vibrant force that drives thriving businesses, and by working collaboratively we can deliver in a way that benefits the entire work ecosystem.
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