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SOW Management

SOW Management Services from HCMWorks

A comprehensive SOW strategy CAN ensure an end-to-end human capital solution

What is SOW Spend, what is its importance and where does it fit inside the contingent workforce ecosystem?

Contingent Labor, represents all forms of Human Capital that is non-permanent in nature, inside any given organization. It comes in the form of temporary employees, independent contractors, consultants and freelancers. Additionally, this form of human capital is typically sourced either directly, or through third party service providers, such as pure staffing agencies or specialized service providers.

What organizations often forget, is that these workers are not exclusively sourced under time and material (hourly rate) engagements. Instead, they are often packaged, and hidden, inside agreements known as a Statement of Work (SOW). 

Organizations looking to truly optimize their contingent workforce management programs, need to ensure that all non-employee workers are visible, managed and accounted for. Depending on the maturity of your contingent workforce management program and objectives, it may be the right time to build or expand your program to centralize and manage your Statement of Work (SOW) engagements for contingent labor.

Why work with HCMWorks to help manage your SOW spend?

Achieving total contingent workforce optimization:

HCMWorks, with its long standing knowledge of services procurement, can help you manage your total human capital spend. We help you build a comprehensive contingent workforce strategy to gain full visibility into your entire non-employee human capital base.

By developing a comprehensive SOW strategy you ensure an end-to-end human capital solution of contract controls, management of supplier performance and population, strategic sourcing, reduced spending, compliance, improved security and risk mitigation.

Having full visibility in your entire contingent workforce with SOW spend management will allow you to maximize productivity, make informed hiring decisions, and see performance issues ahead of time before they affect your bottom line.

“The HCMWorks team was the foundation in the implementation of a contingent workforce managed solution which extends from the hiring process to the payment of consultants.  For more than 5 years, our partnership with HCMWorks enables us to effectively meet our objectives in accessing a large talent pool, all while controlling our costs.” 

Vendor Management Client

"Having had HCMWorks and their team of professionals supporting our contract resources over the past four years has been a pleasure. HCM experts continue to provide solid and consistent resource management, procurement and administration and we appreciate the efforts that they successfully offer. Having them on our team is a huge asset!" 

Senior Manager, Data Centres

"I've been working for almost 10 years with the HCMWorks' team and I hope to continue for another 10 years.  Professional and passionate are few words that best describe this team. They offer excellent overall service and are always available for any inquiries. Their knowledge of the market makes them an asset for the business. I would not hesitate to recommend them." 

National Senior Manager Staffing Office
Statement of Work (SOW) Optimization
Size and importance

Statement of Work (SOW) spend often dwarfs traditional contingent labor spend by multiple factors.

With ‘Services Procurement’ being one of the largest indirect spend categories for organizations, a large portion of your total spend is going into these different forms of labor. To have a truly effective contingent workforce management, SOW spend needs to be included.

Complexity and difference

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).

Technology enablement

VMS technology platforms offer a strong foundation to support the successful management of SOW spend.

Concurrently planning, selecting, designing and implementing a strong SOW management program with technology requires a knowledgeable partner who has successfully done it before.

Many, if not all, large corporations finding themselves with a recurring need for the improved management of Statement of Work (SOW) services. As a result, we are seeing an increase in organizations bringing their Statement of Work (SOW) spend into their contingent workforce programs through a VMS technology platform.

HCMWorks will help you formalize a strategy to bring Statement of Work (SOW) spend into your contingent workforce program with the help of the most compatible VMS technology platforms.

Is SOW spend being used today to circumvent your current contingent workforce program?

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).

More compliance, risk and governance

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.

Vendor neutral and technology neutral advisor: HCMWorks’ competitive advantage

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.


If you are interested in learning more about our SOW management solutions or discussing your approach to SOW, speak to one of our contingent workforce advisors, and we’ll be happy to help!

Speak to One of Our Contingent Workforce Advisors

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