COST impact of staff augmentation misclassified as SOW spend

SOW Cost Calculator

Brightfield identifies an average 20% of SOW spend that should be reclassified as staff augmentation work in the Contingent Workforce program.SOW rates are, on average, 30% higher (but can be more than 100%!) than the same roles from temporary staffing agencies.

Example Brightfield AI-Enabled Findings:

  • High number of SOW Suppliers for amount of spend
  • High spend SOW categories with a high probability of misclassification
  • Temporary staffing providers contributing SOW spend
  • High percentage of total SOW suppliers with
  • Lack of data visibility into SOW details (i.e. type, workers, rates)
  • Lack of data integrity (i.e. supplier names, roles)

Example Outcomes:

  • 30% reduction in identified misclassified spend
  • Reduce contract management effort through supplier rationalization
  • Decrease A/P overhead costs for invoice processing via transition to an automated solution or for a rationalized supply base
  • Risk mitigation from visibility and controls on SOWs misclassified in countries with pay parity penalties for non-compliance

Seeing is believing

Curious to see how other companies manage the economics of their workforce? Schedule a live demo with one of our TDXperts.

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