Many companies do a good job of managing their temporary workers. Unfortunately, those workers may account for less than half of a company’s non-employee workforce.
According to Ardent Partners’ 2018 report, “The State of SOW Management,” 68% (or more) of non-employee labor is not “actively accounted for in corporate budgeting, planning, or forecasting.”
The reason for this dramatic shortfall is that many companies fail to centrally or systematically manage their largest source of contingent labor—the contractors whose activities are performed under statement of work (SOW) based contracts.
As a result, these companies frequently pay their SOW-based service suppliers more than contract terms require. And too often, overpayments are the tip of the iceberg. Low performance quality, security and compliance risks, missed savings opportunities, and other problems are likely to occur.