MSP TODAY NEWS

Philipps 66 IT Engine Runs Smooth with Extra Octane from MSP

By Doug Barney

Philipps 66, with a varied set of business and some 13,500 employees, saw a real need for staffing and workforce management help. Rather than go it alone, when this is not the company’s core business, Philipps sought out an MSP partner. It found what it was looking for in The Bartech Group, Inc.

Bartech will “provide management of its contingent workforce due to their industry leading approach to cost management, risk mitigation, solution design, delivery and overall high-touch consultation,” the company said. Bartech has done some 150 MSP deals in its 36 year history.

Under the deal, Bartech will start by managing temporary workers in the U.S. and later manage Philipp’s contingent workforce in other parts of the world.


Image via Shutterstock

One thing Philipp’s was looking for was a strong partner to drive diversity. And here Bartech already has a system is calls Diversity Delivers that tries to build diversity in all aspects of a partner’s business, and promotes firms led by the disabled, veterans as women and minorities.

“The National Minority Supplier Development Council applauds Phillips 66 for its recent selection of The Bartech Group to provide contingent workforce management solutions,” said NMSDC president Joset Wright-Lacy. “The Bartech Group is an award-winning supplier within the NMSDC Network. The selection of this highly-qualified firm underscores the value and commitment Phillips 66 places on supplier diversity and including minority suppliers in its global supply chain.”

Workforce Management Backgrounder

The world of workforce management and staffing is just as automated as any other disciple, and here tools and services help these businesses run more effectively and profitably.

Staffing Industry Analysts covers this area as a consultancy and educator, and recently reported on the top providers in VMS and for MSP services, both of which help manage temporary workers.

If you are not in this business already, we can learn together. First what is VMS? Well, it stands for vendor management system. “Staffing Industry Analysts (SIA) defines a VMS as: an Internet-enabled contingent worker sourcing and billing application that enables a company to procure and manage a wide range of contingent workers and services in accordance with client business rules,” the organization explained.

If you are on this website, reading this article, you must already know that MSP is short for managed service provider, and we are far more concerned with that category than VMS.

And for MSPs, SIA found that Allegis Group Services (AGS) was the largest player as defined by spend under management with total spend of $8.3 billion. So how is spend under management itself defined?

What is Spend Under Management?

This MSP Today reporter may have been an economics major, but that doesn’t mean he knows every modern term under the sun. So perhaps you, like me, are just now learning what Spend Under Management means. And for many, even those involved in procurement, the term is loosely defined.

Following in that tradition, we’ll loosely define it now. For most spend under management is that amount of dollars that is sourced and spent through formal procurement. Many have more of a services view where the term refers to things that are bought with a sourcing plan, and is then controlled via contract and agreement.

The SIA research was based on a survey of some 100 MSP and VMS vendors, all of whom had to disclose details about their offerings and results.

According to the report, “roughly one-third of global temporary staffing labor is managed either by an MSP or run through a VMS.”

And the use of temporary, also called contingent labor, is growing. “Contingent labor allows corporations flexibility in workforce planning as the global economy remains turbulent. Corporations also use contingent labor to “try before they buy” employees.

In addition to temporary agency labor, corporations are increasingly incorporating Statement of Work (SOW) arrangements into their contingent workforce programs, SIA said. “To manage these varied types of resources, corporations use VMS and Managed Service Providers (MSP). Staffing Industry Analysts estimates that spend under management through a VMS, an MSP, or both, is greater than $100 billion globally and growing. This compares to the total market estimate for global temporary agency staffing labor of $327 billion.”




Edited by Alisen Downey

MSPToday Editor at Large

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