As we step into 2025, cost savings and return on investment remain critical priorities for contingent workforce programs. With lingering market uncertainties and tighter budgets, CW program managers face increased expectations to deliver measurable value while improving operational efficiency.

While it’s common to achieve significant savings early in a program through traditional strategies like volume discounts and rate cards, finding additional ROI can become more challenging once those options have been exhausted. So, how can program managers uncover the next level of savings? The key is to get creative.

Leverage Technology

Technology has become a game changer for CW programs, offering innovative tools to boost ROI. Many vendor management systems and AI-powered analytics platforms can help programs:

• Analyze spending trends. Gain spend insights across departments, suppliers and managers to optimize spending and utilization.
• Predict future needs. Use forecasting models to anticipate workforce demands, costs and savings opportunities.
• Streamline and automate operations. Identify bottlenecks and process inefficiencies to improve the program’s overall ROI. Reduce workloads by automating routine and manual tasks, boosting productivity.

Even if your organization isn’t ready to invest in new technology, start by reaching out to your current technology provider — you may be surprised by features they already offer. Ask how other clients are using their tools effectively. Even better, take a closer look at the features you already have but aren’t fully utilizing. Your technology provider can be a valuable partner and a great resource to help you make the most of what you’ve got.

Reevaluate Your Supplier Strategy

Suppliers play a crucial role in your program but can also drive significant costs. Optimize your supplier strategy to unlock untapped savings:

• Revisit contract terms. Analyze how supplier services are leveraged across your organization and refine contract terms — such as insurance requirements, SLAs and COLA — to align with actual needs. Overprescribed terms can significantly inflate costs without meaningful returns, limiting overall value.
• Encourage competition. Use RFPs to foster competition, helping you maximize value from current suppliers or discover better options.
• Rebalance location mix. Optimize the mix of onshore, nearshore and offshore resources for improved cost efficiency.

A competitive and aligned supplier strategy enhances both program cost-effectiveness and quality.

Explore Alternative Workforce Models

Workforce models like direct sourcing and freelancer platforms provide programs with cost-effective ways to secure talent while maintaining — and often improving — quality.

• Lower costs. Bypass staffing supplier markups and gain direct access to talent at reduced rates.
• Faster talent engagement. Quickly reach pre-vetted candidates to fill roles faster and meet workforce demands more efficiently.
• Greater control. Take charge of the sourcing process and build direct relationships with talent, ensuring alignment with organizational goals and quality standards.

Embracing alternative workforce channels not only enhances flexibility but also drives significant cost savings and efficiency gains.

Adjust Bill Rates with Real-Time Market Data

Market trends like demand, location and skill availability heavily influence bill rates. By leveraging real-time data, program managers can make smarter, faster decisions to optimize costs and attract talent:

• Negotiate smarter rates. Leverage current market insights to secure competitive rates that align with industry and regional norms.
• Stay ahead of trends. Proactively adjust bill rates to reflect regional or skill-specific shifts, ensuring your program stays agile and attractive to talent.
• Reduce inefficiencies. Replace outdated rate cards, which add significant delays to the sourcing process, with real-time data-driven pricing to speed up hiring and eliminate inefficiencies.

Agility in rate adjustments helps keep your program competitive and cost effective while avoiding unnecessary overspending.

Implement Guided Workforce Buying

Guided-buying programs help managers make smarter, cost-effective workforce decisions by providing the right tools, guidance and structure:

• Structure buying guidelines. Implement process guardrails to guide engagement managers to the most efficient and cost-effective channels to achieve the desired outcomes.
• Promote preferred suppliers. Encourage the use of internal talent pools and preferred vendors to drive volume savings and access higher-quality talent.
• Educate managers. Educate managers on the cost and risk advantages of each engagement channel, empowering them to make informed decisions and decreasing dependence on supplier influence, which often prioritizes the supplier’s financial interests.
• Right-size resources. Align resource levels with actual needs to avoid overinflation. Assess whether senior-level resources are essential for the task or if mid-level talent could deliver the same results. Determine if a general supplier can fulfill the requirements as effectively as a specialized consulting firm.

These strategies guide managers toward making smarter workforce investments, saving both time and money while improving overall program success.

Mitigate Risks to Maximize ROI

Reducing risk can be just as valuable as saving money upfront. Here are some key risk mitigation strategies:

• Adhere to labor laws. Stay compliant with local regulations to avoid costly fines and legal issues.
• Prevent worker misclassification. Properly classify workers to prevent lawsuits and protect your company’s reputation.
• Maintain quality control. Ensure suppliers are financially viable and adhere to contractual requirements throughout the entirety of the engagement.

Avoiding major compliance violations can save your firm significant costs. By estimating the potential financial impact of such violations, you can clearly demonstrate the true value and ROI your program is delivering. Proactively managing these risks not only protects your organization but also ensures a positive ROI.

Delivering ROI isn’t just a challenge — it’s an opportunity for innovation. By embracing creative strategies, CW managers can achieve cost savings while driving strategic growth and success throughout 2025 and beyond.