fact sheet
Is a suite-based VMS the right solution for you?
Large, suite-based software companies are acquiring VMS providers, who specialize in managing the contingent workforce.
They try to persuade their clients to add their newly acquired vendor management system (VMS) to the company’s ERP, HCM/HRIS, or other applications already in use.
They talk about “seamless integration,” single points of contact (“one throat to choke”), and “synergies,” but these are not very specific and, without specificity, not very meaningful.
The ‘all-in-one suites’ era ended in 2016. We’re now in the ‘ecosystem era.’ CPOs must select solutions that fit their strategies and not be side-tracked by the excuse that ‘our IT group won’t allow it.’
To find out what you really need to know, here are a few questions you will want to ask:
| How many years of contingent workforce technology experience does their solution design, implementation, and integration teams have? Is their expertise primarily in VMS architecture or HRIS architecture? | |
| Is the company’s primary focus on managing contingent workers or on managing employees? What proportion of resources (staffing and budget) are devoted to each category? What proportion of revenues does each category contribute? | |
| How much relevant contingent workforce data (transactions, spend, skills taxonomies, geographic locations, over how many years) can they apply to help clients optimize their sourcing and rate strategies? | |
| How does their solution manage omni-channel sourcing? Direct sourcing? ICs? Outsourced service providers (SOW-based contractors)? | |
| In which countries have they adapted their VMS for full compliance with local contingent labor laws and regulations? How do they ensure compliance with local and regional data privacy laws for non-employee workers? |
| They claim their VMS integrates seamlessly with their HCM system. Do they share the same code base? Or are the integrations managed using APIs or other methods? Are clients charged for these integrations? | |
| If contingent worker data is shared between the VMS and the other modules in the suite, do they add license fees or other charges for using these other modules? | |
| If staffing suppliers’ rate cards have been loaded into the system, will these rates be pulled automatically into applicable job postings? Or do MSPs or program managers have to enter this information manually? | |
| Which is the system of record for non-employee workers, the VMS or the HCM? How do they separate employees and non-employees to minimize co-employment risk? | |
| What contingent management technology were they the first to introduce? What new contingent management technology is on their strategic roadmap? When will they deliver it? | |
| Which members of their executive leadership who were with the company when it was acquired are still part of the company? |
When you have received their answers, compare them with ours. Our only focus is empowering you to get the most value from your contingent workforce.