A leading digital cable television and telecommunications organization with 22,000 employees and $20 billion in annual revenue had realized significant savings within two years of implementing Workforce Logiq’s integrated managed services provider (MSP) and vendor management system (VMS) solution. Based on this proven success, we advised them to expand their program to include additional requisition types, including those service providers engaged under a statement of work (SOW) – a multi-million dollar opportunity representing their largest contingent spend area.
The customer’s challenges included:
- Limited visibility into spend
- Compliance exposure
- Worker misclassification risk
- Lack of cost and accounting control
Workforce Logiq conducted workshops and discovery sessions to assess the current steps in the professional services provider engagement process. Our due diligence revealed:
- Limited visibility into services procurement spend, making it impossible to optimize the usage of service providers across the enterprise and garner competitive pricing.
- Exposure to significant worker misclassification and other legal and financial risks.
- Outdated accrual accounting system, which required expense recognition prior to invoicing (which could take weeks or months).
- Ineffective screening and onboarding processes leading to worker inefficiencies and unnecessary exposure of customer assets and intellectual property.
- Absence of security and administration processes—no controls over worker access to buildings, systems, intellectual property, and equipment.
Based on these findings, we implemented independent contractor evaluation, service provider vetting, and resource classification that included:
- Adding a VMS module to track and manage professional services projects.
- Initiating independent contractor vetting through our proprietary technology with dual compliance expert review.
- Implementing controls to ensure proper classification of professional service resources.
- Providing real-time expense recognition to support accounting requirements.
Workforce Logiq implemented a custom MSP and VMS solution that included independent contractor evaluation, service provider vetting, and resource classification. By eliminating all supplier bias from the procurement process and leveraging our patented and patent-pending technology,
Workforce Logiq helped the customer achieve:
- Visibility into $80 million in annual services procurement spend. Successful implementation of cycle time metrics.
- 27 percent decrease in additional service providers based on reporting visibility and improved business intelligence.
- $350,000 in annual savings realized through reclassification of engagements.
- Improved spend management— Workforce Logiq accounting tools streamlined spend management and supported $7 million in monthly expense accruals.
- Control and scalability—in one year, 570 professional services projects were created, over 30 service providers were vetted and screened, and more than 1,000 service provider resources were screened, onboarded, and tracked through project tenure.