A contingent workforce to solve complex staffing challenges
While technology advances at a remarkable pace, constituent expectations continue to rise. This presents a challenge for government agencies that must keep pace with rapid change and uphold a high standard of public service. To support these efforts, many are turning to a contingent workforce overseen by a managed service provider (MSP). This strategic approach allows states and state agencies to focus on their core missions while benefiting from specialized expertise. This shift not only improves service delivery and operational efficiency but also ensures better reporting and continuous improvement.
One large MidAtlantic state (the MidAtlantic region of the U.S. is comprised of New Jersey, Maryland, Pennsylvania, Delaware, Virginia, West Virginia, and Washington D.C.) leverages contingent labor for IT projects, freeing up internal staff to focus on high-value work and continuous improvement and innovation. In an effort to contain costs and further optimize the program, the state began work with CAI to streamline contracting and improve the benchmarking of critical data.
Disparate systems can prevent significant cost savings
The state knew it needed a robust contingent workforce and statement of work (SOW)-based project program with reliable reporting and continuous refinement. However, this isn’t always easily attainable for busy governments and agencies. Prior to the engagement with CAI, the state held two separate contracts for procuring IT contingent labor, a “body shop” contract for staff augmentation and an “advanced services” contract for consulting services. While flexible, these contract vehicles lacked a centralized approach for managing the entire contingent workforce. With no benchmarking of wage data, multiple rate cards, disparate processes, and no centralized technology platform, the state lacked an enterprise view of its contingent workforce, and as a result, they were unable to leverage cost containment opportunities. This is where the help of an industry leader in contingent workforce management like CAI made an impact.
A comprehensive solution from a trusted partner
The current contract is used by departments and agencies within the state government, in addition to any other public sector entity in the state. The CAI team works with a network of over 700 vendors to supply IT staff to the various agencies, currently managing over 1,200 staff augmentation resources on active assignments across 61 agencies. In addition, since the implementation of the program, CAI has successfully delivered over 1,000 fixed-price SOW projects across the state.
As the program continued to mature, the role of CAI as the MSP has become increasingly strategic. There is considerable focus on new initiatives to expand program service offerings, streamline disparate agency processes, increase agency adoption of policies and procedures, and other continuous improvement opportunities. Our research has shown that the ongoing soft cost savings seen in a mature, more strategic MSP similar to ours are incredibly impactful.
Consider the following best practices from the CAI team:
- Training and change management services increase program adoption by agency users.
- The ongoing mentoring and development of our vendors improves the quality of contingent labor.
- CAI’s subject matter expertise and best practices for contingent workforce management drive continued operational efficiencies.
- Continuous benchmarking of wage data and bill rates assists the state in being competitive and attracting the best talent.
- CAI’s consulting for scoping and oversight of SOW projects secures competitively priced proposals, reduces scope creep (a project’s scope increasing beyond its original intention without proper approvals), and targets successful project delivery.
- The team’s in-depth business intelligence (BI) reporting and ongoing trend analysis of open position fill rates, job title usage, exception usage, spend, and vendor performance allows for quick identification of process improvements and cost savings opportunities.
- Effective program oversight maintains contract and program compliance, reducing threats to the state and its agencies.
While many MSPs offer SOW-based services, none provide the level of consulting and project oversight that our senior team delivers to the state. The experience and knowledge possessed by CAI, especially relating to project delivery, reinforces that contingent workforce programs are set up for success and can bring tangible benefits.
1,200+
Active staff augmentation resources on active assignments
61
Agencies
15%
Savings due to better quality and faster hiring cycle times
Improved benchmarking, measurable results
Compared to the state’s previous decentralized approach, the initial MSP implementation generated measurable hard cost savings:
- Efficient processes for contingent labor acquisition led to better quality and faster hiring cycle times, generating savings of up to 15%
- Standard bill rates and control of unauthorized purchases generated savings of up to 3.5%
- Effective vendor management reduced legal and compliance risks and created operational efficiencies, generating savings of up to 2%
- Centralized program management generated savings of up to 2%
- Accurate alignment of job classification with market rates generated savings of up to 1%
- Centralized invoice process and invoice accuracy generated savings of up to 1%
CAI has successfully supported the state through two contract recompetes and delivered through each of the contract’s optional one-year extensions. This is a powerful indication of the trust and value that the state places in CAI to manage its IT contingent workforce and complete fixed-price SOW projects.
A true MSP success story
CAI has served as the state’s MSP for IT contingent labor for nearly 20 years, remaining a trusted partner on their continued optimization journey. With the right approach and planning, CAI's contingent workforce solutions can help you improve speed-to-hire and operational performance, lower labor costs, align staffing with business objectives, and increase transparency across contingent workforce management and expenditure. If you’re interested in learning more about optimizing your workforce, contact our experts.
