HOUSTON, Nov. 19, 2009 — According to a recent study by Aberdeen Group, utilizing expertise, solutions and programs provided by managed service providers (MSPs) is a critical step to turn an underperforming or average enterprise into best-in-class with regards to its contingent workforce management. The report, “Contingent Labor Management: Best-In-Class Contingent Workforce Strategies For 2010…And Beyond”, was sponsored by Guidant Group Inc., a managed services and talent acquisition consulting company.

“Our research has found that as enterprises’ MSP programs mature, they drive consistently higher cost savings on their contingent labor spending,” said Christopher Dwyer, Aberdeen research analyst and author of the report. “By outsourcing contingent labor management to MSPs, enterprises have not only seen an immediate impact on savings of 8 percent in the first year, they’ve also been able to sustain and develop those savings as the program matured to as much as 11 percent savings after 4 years.”

The Aberdeen Group research also found that 66 percent of top-performing enterprises are readily outsourcing the day-to-day contingent labor operations to MSPs that not only hold expertise in the field, but also handle all the processes within the contingent labor cycle, including sourcing, administration, compliance-tracking, vendor performance, and onboarding/offboarding. In addition, MSPs assist enterprises in controlling the volatile nature of contingent labor costs; in fact, enterprises leveraging MSPs to manage their contingent labor programs have achieved cost savings that are nearly 40 percent higher than enterprises that do not work with MSPs.

“MSPs can streamline contingent labor processes and introduce efficiencies that positively affect pay-rates, mark-ups and other negotiations that are sustainable over time,” said Dennis Kanegaye, President of Guidant Group. “Guidant Group customers, including the University of Southern California, Northeast Utilities and Duke Energy, have seen consistent savings in their contingent labor costs after engaging with us.”

This report collected data from nearly 200 enterprises between September and October 2009 in order to develop a comprehensive look into the processes, procedures, and methodologies of best-in-class enterprises using contingent labor in diverse industries. The report, published on November 12, 2009, is available for downloading at http://www.guidantgroup.com

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Guidant Group is a managed services and consulting company dedicated to developing comprehensive and integrated talent acquisition programs for its clients. Please visit www.guidantgroup.com for more information.

Brad Leone, Pennebaker Fifth Ring for Guidant Group, 713-963-8607, brad@fifthring.com

Angelica Nelson, Pennebaker Fifth Ring for Guidant Group, 713-457-2125, angelica@fifthring.com