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Leading Financial Services Provider Realizes Cost Savings, Risk Mitigation and Planned Future Program Growth via Direct Sourcing on the MBO Platform
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SITUATION
Moving from Risk to Reward
A Fortune 500 financial services company based in the Midwest was struggling to manage their contingent worker spend. Procurement was overseeing the entire process-from handling SOWs to vetting independent contractors. This presented not only an administrative burden but a legal risk as well. With a company-wide initiative of cost savings in mind, the organization was looking for a partner who could manage their independent talent end-to-end, while avoiding the hefty costs currently paid to a third-party staffing provider.
GATE
This initiative proved particularly fruitful after a company-wide "cost-cutting" mandate in the wake of COVID-19, and positioned the organization to more accurately track, categorize, and pool talent for easy future re-engagement and on-the-horizon projects.
SOLUTION
Moving from Procurement to Partnership
MBO approached the organization's challenges from multiple angles, working closely with program sponsors in both procurement and talent acquisition. MBO helped the organization increase visibility into their contingent workforce at the executive level, as well as to reduce costs by streamlining invoicing, tracking SOW spend, and transforming talent engagement by implementing a direct sourcing initiative. Furthermore, MBO's platform offered value throughout the independent engagement lifecycle, enabling the organization to consolidate from multiple vendors to just one.
Here's how we did it:
Mitigated Risk by Establishing an Enterprise-Wide Independent Contractor Compliance Program
- MBO approached the organization's challenges from multiple angles, working closely with program sponsors in both procurement and talent acquisition. MBO helped the organization increase visibility into their contingent workforce at the executive level, as well as to reduce costs by streamlining invoicing, tracking SOW spend, and transforming talent engagement by implementing a direct sourcing initiative. Furthermore, MBO's platform offered value throughout the independent engagement lifecycle, enabling the organization to consolidate from multiple vendors to just one.
Managed Cost and Increased Efficiencies by Adding in Direct Sourcing via a Talent Marketplace
- The organization reduced third-party labor spend (which often carries a 200-300 percent markup) by directly sourcing independent contractors through MBO's talent marketplace. In particular, the group has seen good traction with independent IT professionals, who are often considered hard-to-source talent. This group was considered a focus due to their high hourly rates.
- This initiative proved particularly fruitful after a company-wide "cost-cutting" mandate in the wake of COVID-19, as well as positioned the organization to more accurately track, categorize, and pool talent for easy future re-engagement and on-the-horizon projects.
RESULTS
Moving from Costly to Cost Effective Via Direct Sourcing
The current program has grown from $8 million in spend at its onset in 2017 to more than $17 million in total spend with MBO and about 285 contractors working on a weekly basis today. This totals more than $800k in savings to date in Q3 2020. The organization cites other success metrics as well, including reduced reliance on third-party suppliers, thanks to direct sourcing efforts through the MBO marketplace, as well as significant risk reduction because of MBO's compliance assistance.
Industry
Financial Services
Number of Employees
6,000 Employees
Company Revenue
$30 Billion
Areas Served
United States
$800,000
In savings to date in Q3 2020.​
285
Contractors working ​on a weekly basisÂ
112%
Growth since ​conception
THE TEAM
Dawnette oversees MBO's Financial Services vertical and is a passionate leader suppporting the future of work.
THE TEAM
Vice President, Strategic Accounts
Dawnette oversees MBO's Financial Services vertical and is a passionate leader suppporting the future of work.
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