By Dustin Burgess on Thursday, 19 December 2019
Category: Guest Posts

An Introduction to SOW Management, Part 2

In part 1 of this series, we explained SOW management and described the common challenges currently face with it. In this post, we will describe the benefits of outsourcing SOW management to the organization as a whole and to the many individual stakeholder groups.

While ERP and HRM systems are an important part of the procurement ecosystem and great for procuring office supplies and related items, they lack the functionality necessary to navigate the complexities of SOW management for services. A VMS enables the business to centralize end-to-end SOW management process. 

Standardizing pricing methodologies empowers hiring mangers or procurement professionals to make better decisions when deciding whether to craft a T&M, milestone, or fixed priced engagement to meet business needs and utilize SOW templates that support each choice. 

This also allows for more accurate workforce planning, accruals and forecasting, and vendor adherence to SOW contract terms. Stakeholders can also confirm the basics such as: where everyone is located, access to facilities and systems, vendor scoring and compliance with company policies, legislative concerns, etc. via the VMS. 

What are the stakeholder benefits of outsourcing SOW management? 

Hiring Manager

Suppliers 

Procurement

Business Leaders

Shared Services

Human Resources

Legal/Finance/Tax

Companies of all sizes and maturity levels are looking for ways to drive substantial cost savings and process efficiencies without introducing risk. Outsourcing SOW management allows business partners to drive material cost savings, enterprise-wide visibility and overall efficiencies using empirical data from tenured, trusted advisors.

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