Maximising MSP with Direct Sourcing

Meeting Missions: Lending Support to Reduce Risks

A global financial institution wanted to boost their access to talent while improving upon their ability to mitigate risk across multiple countries. When they approached Allegis Global Solutions, their existing managed service provider (MSP) programme lacked visibility into their total global contingent workforce and posed potential risks due to improper screening practices by their incumbent provider.

Upon launching our partnership with the client, AGS Managed Services (AGS) recommended that we make key improvements to their MSP programme, including direct sourcing and technological improvements to bring all aspects of contingent workforce management under one program and one provider. This strategy would make it easier to manage risks, compliance, consistency and delivery, as well as increase visibility of the entire workforce across a multinational company.

Taking Action: Investing in Visibility Solutions

With the client’s workforce goals and objectives in hand, AGS deployed strategies to increase the client’s visibility into their contingent workforce, providing greater access to quality candidates, reducing risks and increasing customer satisfaction.

For complete access and view of the client’s contingent workforce, we assisted with selecting and implementing an advanced vendor management system (VMS) to enable 100% tracking of all contingent workers. Not only did the VMS provide greater transparency and efficiency, but also better risk mitigation by having a consistent hiring process that was also aligned to local requirements and nuances. From the program's start to today, AGS has increased visibility from seven countries to over 50, including countries with low volumes or complex local regulations to ensure full visibility for their global contingent workforce.

In addition, AGS helped improve our client’s access to talent by implementing a direct sourcing program in the UK, US, Singapore, Hong Kong and Malaysia.

Many factors have contributed to delivering results for this client, including having an in-house direct sourcing team of more than 42 experienced professionals across seven countries to manage different laws, communications, cultural nuances and local regulations. Not only has this helped boost the success of the individual direct sourcing teams but having one global director for all of the countries has created a single point of contact for all regional leaders and high-level stakeholders. This allows for an open line of communication, helps determine a standard for all regions to follow and develops a strong ongoing relationship between the client and the AGS team.

Delivering Impact: Merging MSP with Direct Sourcing Saves Dividends

Providing measurable results for our client helped build trust and allowed AGS to continue our efforts towards reaching their short- and long-term goals. Our efforts have been rewarded with monthly hiring manager satisfaction scores that ranged from 83% to 100%, proving strong adoption and partnership.

Today, our direct sourcing programme sources 100% of all roles in APAC and 92% of roles in the UK, resulting in approximately 450 placements annually across the UK, US, Singapore, Hong Kong and Malaysia and 564 active payrollers. In the last two years, the programme has helped the client to realise $6.5 million in cost savings through direct sourcing, fee negotiations and other innovative levers — with $3.5 million in cost savings just last year. Since the partnership began, reporting has become standardised and more consistent across the entire workforce; our client’s risk rating is now at an all-time low; and hiring manager and customer satisfaction ratings have all increased.

The increased visibility of the contingent workforce has also had a significant impact on this successful partnership. With 100% tracking of approximately 25,000 contingent workers through their VMS, the client has access to the data it needs to make workforce decisions that save costs and improve ease of management of over 4,700 assignments worldwide.

Having a global MSP team, expertise in VMS technology and a robust direct sourcing programme has saved dividends for our client and built a balance between cost savings and access to high-quality talent.