Millions of young Americans are experiencing a “quarter-life crisis.” They understand that the economy and the nature of work have changed forever. Talent today want more bang for their buck. They want to leave a mark, make a contribution, have a purpose. In short, they’re seeking a calling more than a career. They crave meaning, autonomy, and exploration. Managing one’s vocation successfully is no different than managing a business. And that’s why the contingent workforce has the power to[...]
If you’ll be attending ProcureCon’s Contingent Staffing 2016 Total Talent Management event, you may hear a lot about scope creep, tail spend and SOW. In many ways, they’re interrelated issues. Scope creep occurs when a project is not properly defined, documented or controlled. This leads to unexpected changes, delays and soaring costs as the project balloons into a continually expanding beast. Tail spend refers to spend in the organization that’s not actively being managed across the usual labor categories. More often than not, both of these issues reside in the world of Statement of Work (SOW) projects. SOW is truly the next frontier for procurement. However, capturing this lucrative and competitive piece of the market poses some challenges. By enlisting a Managed Services Provider (MSP), procurement leaders can reap the rewards SOW has to offer.
Last week, I wrote about the exciting opportunities available through a well-managed and organized Statement of Work (SOW) program. Despite being somewhat underdeveloped and misunderstood, as industry experts observe, SOW contracting is definitely one of the fastest growing segments of the contingent workforce. In a period of less than four years, SOW growth has surged. According to some estimates, nearly three-quarters of contingent talent are working under an SOW engagement in the United States alone. Analysts predict this trend to rise exponentially over the next decade. In fact, managing SOW services has become the top priority for 80 percent of clients engaged in MSP/VMS programs. The demand for SOW services is putting new pressures on organizations to enhance their capabilities.
Statement of Work (SOW), The Next Business Frontier
In an era of business that’s fueled by fierce competition and a push to innovate, organizations need to contain costs, streamline processes, develop fluid and elastic operations, and still find highly skilled workers who are capable of delivering results. It’s not an easy task. During the Great Recession, waning profits and the demand to curb overhead gave rise to an increase in contingent labor. Today, however, the continued growth of the non-employee talent force has less to do with slashing spending and more to do with the nature of work -- and workers themselves. Jobs in current business models are transitioning away from ongoing duties; they’re becoming a series of networked tasks and projects. Likewise, modern professionals are embracing this project-based mindset. They seek more control over the fulcrum that balances their working and private lives. They want to pilot their own courses.