What is SOW Spend, what is its importance and where does it fit inside the contingent workforce ecosystem?
Contingent Labor, represents all forms of Human Capital that is non-permanent in nature, inside any given organization. It comes in the form of temporary employees, independent contractors, consultants and freelancers. Additionally, this form of human capital is typically sourced either directly, or through third party service providers, such as pure staffing agencies or specialized service providers.
What organizations often forget, is that these workers are not exclusively sourced under time and material (hourly rate) engagements. Instead, they are often packaged, and hidden, inside agreements known as a Statement of Work (SOW).
Organizations looking to truly optimize their contingent workforce management programs, need to ensure that all non-employee workers are visible, managed and accounted for. Depending on the maturity of your contingent workforce management program and objectives, it may be the right time to build or expand your program to centralize and manage your Statement of Work (SOW) engagements for contingent labor.