Unlocking workforce management ROI with services procurement optimisation

In today’s dynamic business environment, organisations are increasingly turning to external service providers to drive transformation, reduce costs, and enhance innovation. Many businesses want to achieve the absolutely maximum workforce management ROI with the highest level of visibility and control over their service provider relationships.  

What is services procurement? 

Services procurement refers to how organisations source and manage service providers, such as IT consultants, marketing agencies, and facilities management companies.   

However, research shows that many companies don’t integrate service providers into their workforce management strategies as efficiently as possible. According to Ardent Partners, only 48% of businesses have centralised SOW management, leaving significant opportunities for services procurement optimisation untapped. 

The growing demand for services procurement solutions 

The rise of agile business models and the need for specialised skills have further fueled the demand for external service providers. As businesses navigate the current challenging economic landscape, services procurement has become a critical component of workforce management. 

Research highlights several challenges organisations face in managing this hidden workforce: 

These challenges underscore the importance of adopting robust services procurement solutions to enhance control, visibility, and ROI. 

Key steps for services procurement optimisation 

To unlock the true potential of your service providers, organisations must adopt a structured approach to services procurement. Here are five key steps to consider: 

Step 1: Recognise service providers as strategic assets 

Service providers are no longer just support resources—they are essential players in driving digital transformation and business growth. By understanding their strategic value, businesses can align service provider goals with organisational objectives. 

Step 2: Bring service providers under tighter management 

Procurement teams need better visibility into service provider performance, costs, and compliance. Implementing a Vendor Management System (VMS) can centralise data collection and facilitate stricter oversight. 

Step 3: Monitor the hidden costs of poor service management 

Poorly managed service providers can lead to inefficiencies, compliance risks, and spiraling costs. A VMS can take on the ‘heavy lifting’ of tracking deliverables, but human oversight is crucial to interpreting data and ensuring quality outcomes. 

Step 4: Focus on people-centric services procurement 

Services procurement is inherently people-driven. Collaboration is essential for aligning service provider outcomes with broader business goals. Leaders must also decide whether to build in-house capabilities or partner with Managed Service Providers (MSPs) to achieve workforce management ROI. 

Step 5: Partner with a trusted MSP 

While technology like VMS is critical, it’s not enough on its own. MSPs bring deep market knowledge and expertise, helping organisations negotiate better rates, ensure compliance, and optimise service quality. Studies show that companies working with MSPs can achieve savings between 12% and 25% compared to the 7.5% savings typically realised with VMS alone. 

Why businesses are turning to services procurement solutions 

The benefits of leveraging advanced services procurement solutions and partnering with MSPs are clear: 

The Future of Services Procurement 

As businesses continue to adapt to an ever-changing global market, the strategic importance of services procurement will only grow. By investing in services procurement optimisation, organisations can unlock agility, drive innovation, and achieve unparalleled workforce management ROI.  

Partnering with a trusted MSP ensures that businesses not only manage their external workforce effectively but also derive maximum value from these critical partnerships. 

Conclusion 

Services procurement solutions are no longer a “nice-to-have” but a vital component of modern workforce management. By recognising the importance of service providers, adopting VMS technology, and collaborating with experienced MSPs, businesses can transform their approach to services procurement, driving both quality and ROI. 

Start optimising your services procurement strategy today to ensure your hidden workforce becomes a powerful driver of success. Contact Guidant Global for more information.