Managing SOW spend is much different to a traditional contingent labor spend (time and material).

It's important to understand how the SOW landscape differs from traditional temporary labor (staff augmentation). There are many different types of SOWs, with many responsibilities across different parties. It's therefore important to establish a viable framework from the onset, for the successful management of Statement of Work engagements for all organizations.

HCMWorks will support you in differentiating your approach to managing SOW spend versus traditional temporary labor spend (time and material staff augmentation).

Less rogue spend, misclassification and hidden staff augmentation:

Often Managers will use a SOW as a vehicle to circumvent formal contingent workforce program policies in place: such as tenure restrictions, use of approved vendors, rate card restrictions. This results in higher bill rates and increased risk and happens more than most organizations realize, representing a large spend loophole.

Moreover, SOW serves as a way for suppliers to repackage bulk staff augmentation, without accepting any of the additional risk involved in a traditional SOW (considering the defining characteristic of a valid statement-of-work agreement).

Formal SOW management will reduce your liabilities, increase security, optimize productivity and protect your organization both now and in the future.

A Statement of Work is a document designed and prepared to detail work activities, expectations, timelines, deliverables and payments for the work required. Technically not a legal contract, a SOW makes sure both parties understand what is expected and required. If not managed consistently and effectively, organization do not truly derive these intended benefits and sometimes increase risk exposure.

HCMWorks’ Statement of Work (SOW) services are 100% vendor neutral, and with no hidden agenda we're able to work with you towards your goals and meet your expectations, providing you with a tailor-made SOW strategy.