Key trends affecting industry: CWS Summit wrap-up
CWS 3.0 - Contingent Workforce Strategies
Key trends affecting industry: CWS Summit wrap-up

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SIA’s 20th annual CWS Summit examined a range of industry trends and offered attendees actionable information to move their programs forward. The final panel, “Closing Speed Session: Key Takeaways for the CWS Summit,” featured a fast-paced conversation as SIA’s industry experts reflected on the week and summarizing key takeaways from the event.
Here are 10 noteworthy trends discussed at this year’s event.
Internal versus external MSP. Currently, 55% of enterprise buyers surveyed have an external MSP, with internal programs catching up at 52%. Key considerations when considering whether to adopt an internal or external program include the value-added processes MSPs bring, especially in consultancy, benchmarking and managing external tech stacks.
An internal program doesn’t have to be everything, said Peter Reagan, senior director of SIA’s CWS Council. “I would suggest that if thinking of going internal, that you start to map out your swim lane, the various different processes, and decide which elements of that process you think an external managed service provider adds value rather than just conduct the process. Work on your value-added process. Work out whether you need a complete internal, complete external, or whether you need some kind of hybrid.”
VMS health checks and vendor optimization. Conduct regular vendor management system checks, which helps optimize supplier performance. Review the evolving functionalities of VMS and optimize their vendor networks based on performance and value delivery.
“If you are not getting a health check quarterly, biannual, annual from your VMS, you need to do it,” said Cindy Chunn, workforce solutions technology analyst at SIA. There’s new functionality that’s released and being ignored. “You miss a really great functionality that they spent time on creating.”
Gig and IC programs. Avoid using independent contractors at your peril; if they’re correctly classified, they’re the easiest workers to deal with and the easiest workers to pay. The estimated world spend for nonemployee labor is $3.8 trillion, about half of which goes to ICs. However, the use of independent contractors and gig workers requires proper classification to avoid compliance risks.
“The talent wants to be independent,” said Frank Enriquez, director of the Contingent Workforce Strategies Council at SIA. “The younger generation wants to have multiple jobs, especially in the professional IT and high-skilled positions.”
Statement of work. SOW is a complex area requiring a distinct, solutions-focused operational model separate from traditional procurement methods. There is a need for a shift from cost-saving approaches to value-driven models that deliver faster products and services to market.
“SOW is different than procuring goods. It’s different than sourcing a staff augmentation worker,” said Lori Telischak, director, CWS Council at SIA. “And if we try to continue to rubber stamp that same process, we’re going to just continue to get more headaches.”
Direct sourcing. Direct sourcing is a growing trend with significant benefits including improved quality of talent, efficiency and reduced risk. The session noted the challenges of scaling direct sourcing initiatives and advised focusing efforts on the top job categories that account for most contingent workforce spending.
How do you get started? “Maybe setting up a pilot program, taking one occupational category or one location and starting there before you go big bang and expand to different locations or different skill sets,” advised Matt Norton, SIA’s workforce solutions research director.
Cost savings. There are four areas of cost savings: internal costs of running your program, costs of running the program on behalf of your supply chain, pay rate and statutory costs. Where can your MSPs, staffing suppliers and technology providers reduce costs? Look at pay rates and what you can do to manage those, use a very simple formula for head count and profit per employee and try to work out how you can quantify the cost savings.
But proceed with caution. “We talk a lot about cost savings and contingent workforce programs, and a lot of times the short-term cost savings can be very expensive in the long term,” Telischak said. “So, if you calculate what that cost savings would be, it actually turns into an expense maybe five years later. Just consider that.”
Technology (AI automation and bots). AI has the potential to enhance supplier performance management, particularly in terms of matching candidates’ skills with roles through automated chatbots and natural language processing. AI is accelerating candidate selection and improving overall workforce efficiency.
“We’re starting to see chatbots come in and help the supplier get the right candidate to the right rep,” Chunn said. “The chatbots are incredible. They work for the supplier, they work for the candidate and they work for the client.”
Data and analytics. Speakers stressed the importance of actionable data, advising organizations to model out potential scenarios based on data trends. Additionally, clear and concise executive summary reporting was recommended to drive decision-making and demonstrate the value of workforce programs.
“I see time and time and time again, great data, great analytics not being acted upon,” Reagan said. “So, model out your data. What would you do if it went that way? What would you do if it went another way? You don’t have to wait for it to go that way. You can decide now.”
Contingent workforce program team structure. Look for resources with a data analytics skillset and/or VMS experience to build out your team and your strategy. Culture fit is also an important component of your partners and teams. Don’t let a person go on longer than they need to be when you can speak up. Don’t just go to RFP — have a transparent conversation and let your MSP or VMS partners handle it for you.
“Often a lot of us come from a background in MSPs,” Telischak said. “We might let a person go on maybe longer than they need to be there when we could have spoken up and said something.”
DE&I. Despite recent cuts in DE&I programs in some companies, diversity remains essential for better economic and business outcomes. Tracking candidate diversity and embedding DE&I into the organization’s culture and technology stack remain critical strategies for sustained success.
“DE&I isn’t an initiative because initiatives fail,” Norton said. “It needs to be embedded within your organization, not something you turn off and turn on with the economic climate. It needs to have executive support and be embedded in your technology. So, how are you using your VMS to track it? If you can’t measure it, you can’t prove it.”
And this was just the tip of the iceberg when it comes to innovative solutions, strategies and tactics discussed at the CWS Summit. What did you find to be compelling? What could we add next year? Reach out and let us know at [email protected].