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