Sourcing Savings

Direct Sourcing Boosts Cost Savings for Global Tech Company’s MSP Program

Impact At a Glance

$1M+

in annual cost savings achieved through direct sourcing

22%

faster time to fill

85%

bill rate management, compared with 101.2% supplier average

Meeting Missions: Rebooting Value for a Tech-Driven Future

In the current dynamic business environment, organizations must continuously seek new ways to enhance efficiency and control costs to remain competitive. Our client, a leading global technology company with an established managed service provider (MSP) program, understood innovation meant looking beyond traditional models to unlock untapped value.

Recognizing the need for strategic transformation, the company turned to a partner they could trust to drive meaningful change: Allegis Global Solutions. Building on a partnership of more than a decade as its MSP and procurement solutions provider, the client embraced direct sourcing as a forward-thinking evolution of its workforce strategy—a next step that would serve as a catalyst for cost reduction and enhanced value within its existing MSP program.

With an ambitious goal of achieving significant cost savings, improving user experience and expanding access to top-tier talent, AGS Managed Services (AGS) introduced a bold direct sourcing initiative. This move revolutionized the program’s approach, enabling the client to achieve over $1 million in annual savings and dramatically improve bill rate management, while advancing toward a scalable, globally competitive model for talent acquisition.

Taking Action: Powering Up Success with Direct Sourcing Innovation

Recognizing the client’s desire to maintain its competitive edge as an industry leader, we helped them launch a global direct sourcing initiative — incorporating advanced dashboards, enabling real-time analytics and benchmarking against competitors. This strategic approach ensured that the client could measure success not only internally but also in relation to market peers.

Crucial to the initiative’s success was the emphasis on strong brand usage and robust client engagement within the talent community. In comparing results with a key competitor, it became clear that enhanced brand visibility led to increased community growth and deeper engagement with candidates.

Innovation played a central role through the integration of AI and automation, particularly in optimizing job descriptions using the TalentNet platform. AGS highlighted the efficiency gains and application of AI technology, which streamlined the hiring process. Further, by integrating TalentNet with the Beeline VMS, we assisted in simplifying implementation and enhancing the end-user experience.

Further, we expanded access to talent, supporting the client’s efforts toward both regional and global growth. These solutions collectively equipped the organization with the tools and insights needed to build a scalable, competitive workforce program that could adapt to evolving business needs.

Delivering Impact: Lasting Results, Global Momentum

Through collaborative change management, advanced analytics and seamless technology integration, AGS enabled the client to create a globally competitive workforce program, benchmark performance and adapt to market shifts. AI and automation enhanced and streamlined the hiring process — broadening access to tech talent and positioning the organization for regional and global growth.

The impact was significant and measurable. The talent community grew to 100,000 members, surpassing a key competitor’s 86,500 in a shorter timeframe. In addition, AGS curated over 59,000 engaged talent profiles. The initiative delivered more than $1 million in annual savings, established a new standard for innovation and improved bill rate management, including an 85% bill rate management rate and a 22% faster time to fill.

These results propelled direct sourcing into a top-three market position for active headcount, with AGS becoming one of the client’s top three US suppliers and capturing 7.3% market share. Success in North America set the foundation for global expansion, with teams ready for further growth in EMEA, including expansion into the UK and Ireland.

Blending operational excellence, robust talent engagement and continuous improvement, AGS’ direct sourcing program redefines industry standards, providing clients with the tools to succeed in the complex talent landscape.