Operationalizing a Single Strategy to Manage All Services Spend

Why Now, How to Achieve It, and How Your Business Will Benefit

Facing tight labor markets and rising costs, organizations across all industries are turning to external service providers and temporary and contract labor to get work done. In fact, only 58% of workforce spend is on employees; the other 42% is on external labor.¹ And the percentage is anticipated to continue to rise.

While it’s easy to lump all external service providers into a one-size-fits-all category of labor that can be sourced and managed like any other purchase required by the business, this is hardly the case. The service provider maintaining your building’s exterior is less strategic to your corporate growth than the IT service provider that keeps data accessible and applications running, or the coding experts hired for a software development project.

As explored in this paper, to realize the full business value of the range of service providers, you must manage them using very different approaches and levels of visibility and insight.


“Agility Isn’t Always on the Payroll: Gain Full Visibility of Your External Workforce to Help You Drive Better Busi[1]ness Outcomes,” Agile Procurement Insights Research by SAP in collaboration with Oxford Economics, 2021.

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