How outsourcing can help manage your Statement of Work (SoW) spend
What is Statement of Work (SoW) Procurement?
Statement of Work (SoW) procurement is defined as the process of finding, agreeing terms and acquiring services for a defined outcome, from an external provider, often via a tendering or competitive bidding process. This process is used to ensure the buyer receives the best possible price when aspects such as quality, quantity and time are considered.
While this is easy in theory, in practice consulting services work is often given to previous suppliers, or a limited vendor pool, with little oversight and no ongoing tracking or reporting. This is where partnering with an outsourcing services procurement provider can help.
The website Consultancy.org estimated that £9billion was spent on consultancy services in the UK in 2017, with over 80% of this spend falling into the following categories, listed in order of spend:
- Digital & technology
- Programme & project management
- Human capital
- Risk & compliance
- Change management
The size and scope of this spend alone warrants greater scrutiny from procurement professionals, who have historically had a better view of direct procurement costs. There are numerous reasons why addressing consultancy services spend is difficult to standardise, commoditise and analyse, including:
- Complexity of the services given
- Blurred lines of responsibility for end results
- Long-term impacts often emerge after services are provided
- The work delivered is often outside the client’s expertise to judge
- The work is often dynamic in nature leading to scope creep
How can a recruitment outsourcing provider help procurement leaders address some of these issues?
A recruitment outsource provider can help by working in partnership with business leaders to manage their services procurement and give those leaders the bandwidth to understand, analyse and action a more active strategy.
Hiring any consultant requires attention and diligent engagement to ensure you get the best results and value for money. With an experienced partner in place, an organisation’s procurement team should be able to:
- Gain early visibility and get involved at the start of any process
- Correctly classify the service requested
- Assist with the creation and recording of quality SoW contracts
- Manage the RFx process
- Track ongoing engagements and provide effective management information
There are five ways Resource Solutions can help deliver this:
- Provision of knowledgeable staff with the necessary focus
- Best-in-class process and procedure, designed for productivity
- Effective technology management – ensuring the VMS is configured correctly with appropriate functionality
- Streamlined accounts payable & automated invoicing services
- Standardised legal templates that meet best-practice
At Resource Solutions, we are happy to help build and operate efficient, productive services procurement solutions that are bespoke to your current needs.
If you would like to discuss services procurement outsourcing in greater detail, feel free to contact me on firstname.lastname@example.org or 020-7509-8511