Strategic Savings

Meeting Missions: Revealing Economic Opportunities Through Greater Visibility

A global fintech leader, our client is data-driven by design. When they were looking for cost-savings opportunities across their global extended workforce, they knew visibility into the data paired with expert labor market analysis would be key to not only identifying cost-saving measures but bringing them to reality.

The company partnered with Allegis Global Solutions (AGS) as its managed service provider (MSP) to engage the global contingent workforce and streamline statement of work (SOW) suppliers through a robust extended workforce management program.

After an initial evaluation of the organization’s tech systems, workforce needs, overall goals and various contracts, as well as a misclassification analysis, our team designed a plan that would address the client’s immediate concerns and set them up for long-term success.

The plan would:

• Streamline the supply chain
• Reduce misclassifications
• Source quality talent across the globe
• Centralize and update its vendor management system (VMS)
• Deploy cost-saving levers for immediate and continued success

In addition, the company was planning a significant global expansion and wanted to ensure the plan would be scalable across multiple countries.

Taking Action: Strategic Moves Reap Big Results

As the client’s inaugural MSP, it was critical to demonstrate early wins for the client as well as map out a strategic contingent workforce process, update and centralize the tech stack, and roll out a data-based expansion plan.

Reducing Misclassification

To address the client’s concerns, the AGS team fully evaluated for misclassifications using Brightfield TDX tools. Following this evaluation, we reduced misclassifications from an industry standard of 75-80% to under 10% within two years.

Based on the client’s needs, we also optimized the number of suppliers while increasing the quality of the workers contracted to get work done. With a reduction in misclassifications and suppliers, as well as reevaluation of old SOWs and deployment of new ones, the client experienced significant cost savings very early in our partnership.

Centralizing the Client’s VMS

The client also needed greater visibility into their contingent workforce in a centralized VMS that could be used to monitor rate cards, workers, service providers and more. Fully integrating the system enabled the client to see data points on the performance of workers, suppliers and the business, as well as the same system for developing the SOWs.

With a fully centralized VMS in place, the AGS team developed an expansion plan that streamlined the process for onboarding new talent in a new location. Over just 18 months, the company’s services procurement strategy grew from 600 assignments in six countries to more than 15,000 active assignments in 31 countries. In the intervening years, we have supported the client’s expansions to now include 38 countries, including extensive training and onboarding. Now, every worker in every country experiences a consistent onboarding process.

Delivering Impact: Data-Led Planning Pays It Forward for Future Cost Savings

With the various levers in place to open visibility and create a centralized tech stack for data, plus the critical role of skilled analysts and workforce advisors, AGS provided true, measurable results for our client. Our interventions produced approximately $20 million in savings in the first year, reduced the number of unpreferred suppliers by 45% within the first few years and most recently decreased year-over-year spend by 50%.

Following the initial reduction in misclassifications to 10% in just two years, our continued measures have further reduced misclassifications to 5% just a year later. Using AI to measure misclassifications, we conduct an evaluation every couple of years to ensure the percentage remails low.

We continue to push the needle on savings, visibility and continued optimizations. With a more targeted and intentional choice of suppliers, we have impacted our client’s diversity, equity and inclusion efforts to improve company culture and guide managers. We also streamlined all client processes to be scalable to promote ease for expansion. The impact has yielded a partnership that continues to thrive into the next decade.  

One of our client’s leaders described our partnership, saying, “We’ve been able to solve all of what our business was looking for when it comes to compliance. We now have the visibility to report to our stakeholders and leaders on financial insights for the business, as well as our overall program growth and scalability."

Through clear and thorough data, innovative technology stacks and proven consultation, AGS has partnered with our client for measurable and continued success.