A Contingent Workforce Remodel

Meeting Missions: Rebuilding Trust in the Extended Workforce

With its incumbent managed service provider (MSP) program in disarray – including $30 million in invoices requiring resolution – a leading American retailer specializing in home improvement turned to AGS Managed Services (AGS) to improve total cost of workforce and misclassified spend and repair the program’s internal reputation.

AGS’ program takeover meant not only mitigating risk by cleaning up invoices and alleviating pressure from suppliers but also rebranding the program within the client organization to improve user experience, adoption, supply chain management and spend management.

Taking Action: Floor Plan for Success

With AGS on board, the first task was to renovate the internal brand of the client’s MSP program. The previous provider had mismanaged the program, causing some departments to avoid utilizing the MSP altogether. Leveraging the expertise of AGS Ignite Marketing, our rebranding aimed to improve the internal user experience and position the program as an attractive, effective, seamless way to source IT and business talent.

To address the client’s total workforce costs, AGS provided a full extended workforce solution, including staff augmentation and procurement solutions covering spend and resource insights, to improve visibility and consistency in how the client leveraged the extended workforce. Further, AGS evaluated the client’s statements of work (SOWs) and identified cost savings through market analytics and examining misclassified spend. Using tools such as the Power BI dashboard, AGS provided the client with real-time data to enable more informed decision making.

AGS brought more technology to bear for the client, enlisting the Glider AI software platform, which effectively screens candidates for unique roles, such as brand advocacy, and Brightfield TDX technology, which streamlines workforce spend using skills-based market rate benchmarks. TDX supports ongoing budgeting and contracting expectations with business partners and suppliers. AGS also established an annual rate card refresh to ensure the client maintained an edge in the market by offering competitive rates.

Delivering Impact: Foundational Improvements, Measurable Results

Within the first six months, results of the internal rebranding efforts, including creating new templates and documents, not only made a positive impact with client sponsors but also improved client and user experience—winning back business units that had stopped using the program due to the poor performance of its former MSP.

Demonstrating the strong partnership between the client and AGS, support of the program has grown exponentially over the years. While certain client business units stepped away from utilizing the program, those departments returned under AGS’ MSP program and now represent more than $3.5 million in spend under management. In just over a year’s time, the program reached an all-time high of $53 million in SOW spend and $47 million in contingent labor spend. The program is also expanding to include light industrial contingent labor, which is expected to further increase yearly program spend by $15 to $20 million.

Further, AGS launched the resource insights project to help track and gain visibility into the client’s entire external workforce, which includes more than 20,000 workers. Our resource insights project has also identified pockets of business that should be in the program through the MSP—ultimately saving the client from being overbilled by suppliers.

Feedback from the initial Voice of the Customer survey showed room for improvement—particularly in technology, analytics and business recommendations. AGS listened and has since helped the client achieve milestones by launching data-on-demand technologies, assisting with supplier optimizations and rate card refreshes, and enhancing the vendor management system (VMS). These efforts resulted in 100% NPS scores in the latest Voice of the Customer survey.

AGS continues to earn the confidence of the client, and we look forward to supporting their current and future workforce goals.