NSW Government
Contingent Workforce Strategy
Wednesday 3 September 2014
Gabi Bywater
Lead Category Specialist
NSW Procurement
WHOLE OF GOVERNMENT STRATEGY
• The NSW Government will be a leader in
contingent workforce management by:
Attracting highly skilled workers to the government
contingent pool
Leveraging the contingent workforce as a strategic
component of an overall workforce management strategy
Collaborating with providers of best practice services and
systems to drive savings and efficiencies
THE DIRECTION
The Contingent Workforce Strategy follows a Four Pillar approach:
Prequalification
Scheme:
Contingent
Workforce
Mandated
Vendor
Management
System
(VMS)
Not
Mandated
Managed
Service
Provider
(MSP)
Not
Mandated
Contractor
Management
Organisation
(CMO)
Not
Mandated
WHO BUYS?
Transport 26.24%
Education & Communities
15.27%
Health 11.82%
Finance & Services 10.47%
Attorney General & Justice 8.59%
Other Agencies 7.52%
Trade & Investment, Regional Infrastructure
& Services 6.88%
Premier & Cabinet 6.55%
Family & Community Services 6.24%
Treasury 0.44%
Spend per Agency July 2013 - June 2014
Unaudited. As reported by suppliers
WHAT DO WE SPEND? $623M
-
10
20
30
40
50
60
70
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
$m
illio
n p
er
mo
nth
Contingent Workforce Spend Financial Year 2013-2014
C100 SCM0007 FY 2013-14 FY 2012-13 FY 2011-12
C100
2011/12 2012/13 2013/14
Unaudited. As reported by suppliers
What do we buy?
H-IT Management 198,055,703
31.81%
I-IT Applications 149,048,977
23.94%
A-Administration 83,870,683
13.47%
C-Specialist 57,450,491
9.23%
B-Finance 34,977,301
5.62%
D-Industrial 30,933,029
4.97%
E-Professional 25,943,104
4.17%
G-IT Network and Equipment 22,260,400
3.57% F-Technical 10,585,329
1.70% J-Transport 6,351,778
1.02%
L- Other 2,957,031
0.47%
K-Education 263,608 0.04%
Spend per category July 13 - June 14
Unaudited. As reported by suppliers
Key Features and Benefits of the Strategy
Prequalification Scheme: Contingent
Workforce (Scheme) – January 2013
• Approved labour suppliers assist agencies source the right
people at the right price
• Standardised supplier terms and conditions
Vendor Management System
(VMS) – January 2014
• Single software solution to engage, manage and report on
contingent workforce
• Comprehensive reporting functionality
• Real-time dashboards
• Ability to forecast trends and spend
Managed Service Provider
(MSP) – September 2014
• Strategic partner to drive corporate objectives
• Manage end-end process from approval to recruit,
engagement, onboarding/offboarding
• Provide governance and administer policy controls
Contractor Management Organisation
/ Payroll Providers
(CMO) - soon
• Build sector-wide pool of contingent workers
• Provide payroll services and manage the employment
relationship
• Achieve savings through the direct sourcing of contingent
workers
www.finance.nsw.gov.au
www.procurepoint.nsw.gov.au