Companies frequently pay their SOW service suppliers more than contract terms require. And too often, overpayments are the tip of the iceberg. Cost savings opportunities, quality vendor selections, and other procurement activities are also threatened. According to research and advisory firm Ardent Partners:
“Only 30% of enterprises have the ability to track performance of SOW-based labor and services against predetermined and agreed-upon delivery dates and milestones. This failure actively contributes to projects going over budget and negatively impacting the business initiatives tied to these projects.”
If you can’t see, report on and analyze your SOW supplier engagement details—around consulting, professional services, managed services or other third-party vendors—the negative effects go far beyond inaccurate invoicing and payments.
When your senior executives responsible for SOW project management engagements don’t have visibility into engagement details, it’s tough to control the SOW operational flow and develop smart sourcing strategies.
Aberdeen estimates that nearly 36% of all contingent work is tied to an SOW agreement, putting pressure on CWM programs to enhance their capabilities.
The potential risks of mismanaging your SOW-based services are significant:
The Beeline + IQN Compass Vendor Management System (VMS)—which includes Contingent Workforce Management, SOW Project Management and Headcount Tracking solutions―delivers real-time access to spend and vendor data. Transactional control points ensure 100% contract compliance and successfully meeting Procurement’s negotiated terms. The solution also offers flexible scaling across a portfolio of differentiated spend at various operational maturity levels.
With Beeline +IQN Compass SOW Project Management, you can gain complete control of your SOW-based projects and services so you can achieve key milestones and delivery dates while staying on budget. You benefit from: