fact sheet

common challenges when establishing a new sow program & how to avoid them

The contingent workforce has grown steadily, leading many large enterprises to partner with MSPs to manage and control spending across non-full-time categories like staff augmentation and SOW. While a well-managed SOW program can bring benefits such as cost reduction, efficiency, and better workforce visibility, common challenges in setting up a new SOW program can limit its success and prevent organizations from fully realizing these advantages.

The amount of contingent work as a percentage of the overall workforce has steadily increased for many years. With this growth, nearly 60% of large enterprises in 2024 have engaged MSP partners to help capture, manage, and control contingent spend across all non-full-time categories. These categories include staff augmentation and SOW, with SOW spend representing 35% to 38% of all spend captured through MSP programs.

Capturing this SOW spend within a properly designed and managed SOW program yields many benefits to organizations, including cost reduction, efficiencies, workforce visibility, and better SOW engagement outcomes. However, some common challenges while establishing a new SOW program can materially affect the program’s success, inhibiting the organization from realizing its full potential. Some of these hurdles include:

challenge #1

Failing to engage a tenured, proven MSP partner to design and manage all aspects of the upstream and downstream SOW process.

One of the most common mistakes that companies make is to seek to establish a new program without engaging the expertise of a tenured MSP partner with proven success managing SOW programs. SOW Management is complex, and in the world of Services Procurement, there are many considerations about where and how to start.

challenge #2

Implementing only one component of what successful SOW programs require to function optimally (i.e. tech, service, and data).

A holistic MSP SOW program will combine service, technology, and data. Often, organizations will seek to implement a solution that addresses only one of these components (i.e. only implementing a tech solution without a service layer), only to find the program is not functioning optimally due to the lack of addressing the other components.

challenge #3

Not considering the timing of when to roll out an SOW program as it relates to the maturity of the organization’s overall External Workforce Program.

The timing of implementing an SOW program is also a critical consideration to ensuring a successful launch. Depending on where your organization is in the evolution of its overall contingent management program, various methods are available to roll out the program to handle different components.

challenge #4

Attempting to leverage existing technology within the organization that is not built for SOW management, creating broken/sub-optimal workflows and process gaps.

Implementing a strong technology solution is essential to drive user experience, establish a centralized upstream intake and downstream management process, and consolidate billing. This technology will also ensure the capture of SOW program data. Capturing data will provide visibility into program spend, vendor performance, lifecycle times, rate benchmarking, and much more.

challenge #5

Inadequate controls and internal adoption leading to unchecked rogue spending, uncaptured shadow workforce, and missing critical data.

A strong MSP service partner who will help design and manage the program. They will be critical in establishing controls, integrating this technology into your ecosystem, increasing internal adoption, and interpreting the program data to drive efficiencies and empower future workforce planning. Additionally, the MSP partner will identify rogue spend within the organization, ensuring it is captured within the program.

Atrium’s Statement of Work (SOW) lifecycle solution provides actionable insight and transparency into the SOW process.

ATRIUM CAN HELP

The management of Statement of Work (SOW) & Services Procurement is complex in nature, and it’s critical for enterprises to engage a proven partner that understands these complexities and is experienced in driving SOW management success.  Atrium specializes in managing this spend category with a high-touch, consultative approach to optimize visibility and achieve operational excellence.

We provide a complete Statement of Work (SOW) lifecycle solution from advising on the proper engagement type and optimum sourcing channel to mitigating risk and identifying savings opportunities. Our solutions provide actionable insight and transparency into the SOW process, as well as complete financial and operational visibility into program performance, for a comprehensive view and better control of your extended workforce.

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​*The information provided on this fact sheet does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available here are for general informational purposes only.

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