Do it yourself! Why you can configure your VMS without a third-party Managed Service Provider.
Updated: Nov 8, 2021
Organizations continue to seek out ways to manage their contingent, non-employee, or “extended” workforce. Historically, the technologies used have been called, Vendor Management Systems. With the rise of the gig economy and differing types of engaging talent, they have transitioned to Extended Workforce Technologies or EWT’s.
The objective of these tools is to provide transparency, consistency, and controls in sourcing, onboarding, managing, paying for, and offboarding non-employees. Organizations have often outsourced the management and configuration of their technologies (VMSs) to a third party with such complex processes. In the non-employee labor space, these are typically Managed Service providers (MSPs). However, more organizations are taking control of their non-employee workforce. They realize that they do not need to be beholden to a Managed Service provider, and here are the reasons why
It’s a SaaS ((Software as a Service) platform, like any other
A Vendor Management System or Extended Workforce Technology can be sold directly to an organization as a software as a service platform, and any organization can hold the license. And those organizations’ technology departments are often built to support other SaaS platforms like Workday, SAP Ariba, Coupa P2P, Salesforce, Oracle, and many more!
Talent and their skills are portable to your organization.
Similar to other SaaS platforms, expertise in selecting, implementing, supporting, and configuring Vendor Management Systems and Extended Workforce technology is available. Outside consulting firms can be a viable alternative to utilizing an MSP. For example, Tracz Consulting has extensive experience with all aspects of the extended workforce. Our resources have experience implementing, configuring, reconfiguring, and supporting over 40 VMS/EWT technologies instances. We can even help you build the business case, model out your ROI, and support other aspects of your program beyond the configuration of the VMS, including recruiting the talent for the ongoing support!
The biggest reason --- COST
An outsourced party has an ongoing cost, and while that is added to your supplier fees (also known as supplier funded), it is ongoing. An internally managed program can structure the fees to fund the internal support and an outside consultant. While still being supplier funded. Tracz Consulting would have a fixed fee cost over one quarter or one year and typically generates 3 to 5X ROI on our one-time fees, as we did with this client!