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IT Third-Party Labor
Spend Optimization

Organizational Struggles with
Contingent Labor

Image by Austin Distel

As organizations continue to scale and accelerate their technological capabilities, they require ever-more qualified workers and resources to keep business initiatives on pace with the competition. This “need for speed” has shifted the reliance on traditional hiring practices to utilizing third-party labor to quickly on-board talent and drive results.

Although companies are using more contingent workers than ever before, ClearEdge has observed many fail to properly

set up their labor spend for success. As a result, agreements with fragmented requirements, the absence of a common

rate card with standardized titles and descriptions, and vendor sprawl lead to excessive spending and an inability for

organizations to recognize the full value of their third-party IT labor contracts. To be successful, organizations must arm

themselves with the extensive knowledge on buying and managing contingent labor to achieve productive third-party

relationships and desired outcomes.

ClearEdge Services & Deliverables

Outsourcing IT labor is a good way to trim employee costs and speed up projects, but it can turn into a nightmare when not properly managed. To help organizations handle the hurdles and avoid the missteps, ClearEdge assists organizations in evaluating processes and controls when contracting third-party IT labor. Our services help address third-party labor shortcomings and establish effective governance models based on best practices. Deliverables provided by ClearEdge’s Third- Party Labor Assessment Services include:

Rate Card Analysis

ClearEdge analyzes existing staff augmentation and project rates by position and location for market competitiveness, drawing on a database of the most current onshore and offshore labor rates by position, vendor, country, and region.

Job Title & Classification Market Baselining

Identify overlapping, duplication or lack of differentiation in client’s sourced labor pool. Recommend either grouping or fragmenting roles and titles based on job requirements and descriptions.

Best Practices Analysis

Vendor Consolidation & Labor Sourcing Improvement Recommendations

Establish a basis for consolidating the client’s existing vendor base if appropriate to improve spending leverage and vendor management. Based on the results of the above analysis, ClearEdge will also provide client with observations and recommendations to improve its labor sourcing process.

Team Leadership & Delivery Model

ClearEdge provides Third-Party IT Labor Assessment services by deploying a team of experienced professionals to work directly with clients. The team brings a track record of success working with clients on IT labor contracting and management engagements. Key members of the team are:

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Jim Faletra | Managing Director, IT Services Practice Lead

Jim’s tenure in IT spans three decades, includes expertise on Enterprise IT infrastructure, as well as IT sales, solutions development, and consulting.

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Ryan Satava | Managing Director, IT Services Practice Lead 

Ryan brings over 20 years of delivering IT Services to clients, for Fortune 500, mid-size and start-up software providers including Mercury Interactive, Opsware, HP and Apptio. 

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Kevin Betts | Senior IT Services Analyst

Kevin has focused on Professional Services, Managed Services, and IT Third-Party Labor engagements at ClearEdge for many years, where he works to help clients improve their labor rates and managed resource models, diagnose issues in the services procurement process, and develop strategies and tactics during RFP bids.

Want to Learn More About IT Third-Party Labor Contracting?

IT 3rd Party labor Contracting Guide

Take Our 3rd-Party Labor Deal Strategy Assessment

Grade your 3rd-Party IT Labor negotiation strategy against best-in-class deal data from over 4,000 it labor-related sales negotiations that ClearEdge has assisted in.

 

Need Our Assistance?

If you need assistance in optimizing your labor spend, contact us to schedule a meeting with a subject matter expert.