Steady State

Driving Sustainable Savings for an Australian Government

Impact At a Glance

AU$67M+

in savings over the course of the partnership

10+

years as a trusted MSP partner

20%

of total client category spend

Meeting Missions: Adding Value Through Optimised Workforce Costs

In government, a dollar saved is a dollar invested back into the community. For over a decade, Allegis Global Solutions (AGS) has supported an Australian state government in its mission to deliver quality services in a cost-effective manner. 

As its managed service provider (MSP) partner, AGS’ primary focus is on compliance and cost reduction. Aligned with our client, we help to ensure risk mitigation and complete visibility into the contingent labour workforce and spend across more than 20 separate departments and other government corporations, from education and healthcare to justice. The client requires a trusted advisor that can deliver customised solutions to meet the unique needs of individual stakeholders under its vast umbrella.

This custom support has led to collective impact. Over the course of our partnership – the first of its kind for any state government in Australia – AGS has driven more than AU$67 million in savings through our success in capturing and analysing data, and advising the client on a myriad of workforce strategies. With more efficient government spending, that drives value back into the community.

Taking Action: Impacting Stakeholders with Custom Solutions

Working hand-in-hand with each stakeholder, AGS manages the sourcing, procurement-to-engagement process and full treasury function, and oversees distributed resources, activity and costs. Employing benchmark insights and best practices, AGS’ project management office (PMO) provides each government department a clear view of worker supply and demand; consistent spend and cost savings; and improved responsiveness and risk control. 

At the heart of AGS’ ability to deliver effective workforce solutions is our Global Business Services (GBS), which helps support the PMO through centralised functions such as customer enablement, technology and analytics.

A few key areas of impact have been:

Labour market analytics

For one particular project, the client needed two securities contractors, but without insights into the market, they relied on historic spending and instinct to determine a day rate. When the client approached AGS with the approved budget for the roles, our team concluded the day rate was higher than required. As a trusted partner, AGS was able to map the market and make a recommendation back to the client, returning with a daily rate AU$1,000 lower than their original price point. The client agreed to amend their budget down, and its suppliers responded positively on the job specification and rate, successfully – and quickly – filling the roles.

Technology operations and system enhancements

The client’s process for managing invoices through the government’s accounts payable (AP) system was overly manual and drawn out. The client-requested solution – which AGS prioritised for Australia – is an e-invoicing system that provides a faster and more secure way to transfer encrypted invoices directly into our client’s AP system. Automated e-invoicing not only increases efficiency and mitigates risks, but also streamlines a three-day process to under three seconds with the click of a button.

Supplier optimisation

The client has an extensive and comprehensive supplier panel. Through our access to data, AGS provides reports to support the business in making informed decisions. For example, one key report offers insight to role types, suppliers filling those roles and rates. Another details whether the supplier submits applicants, declines the role or does not respond.

Account management through a singular vendor management system (VMS)

A VMS is an important tool used in workforce management. It captures the recruitment process, data and enables an auditable process. The PMO supports the client in the use of the VMS to ensure continuity by verification of accurate data capture and report generation.

Delivering Impact: Sustaining Success Through Trust, Cost Savings 

The sustained success of this complex government programme didn’t happen overnight. What began as a pilot programme filling primarily information technology roles is today a fully integrated MSP programme managing 20% of total client spend across various departments and has resulted in one of the largest and longest-running MSP partnerships in the region.

Our collective approach – “fill a job with the right person, as quickly as possible within budget” – has led to AU$67 million in savings over the course of the partnership and has enabled an aspect of sustained impact that has exceeded expectations. Through these significant cost savings, the client is able to better allocate budget toward valuable community services and programmes.

Our ability to become an integrated partner and help our client meet and exceed its cost savings and workforce optimisation goals has resulted in AGS being viewed as a valued extension of the team.