Confidential Report – NOT for Distribution | ©2012 Crain Communications Inc. All rights reserved.

North America

May 24, 201210 am PT/ 1 pm ET

This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you continue to have trouble with the sound, you may dial into the call by dialing 1-408-600-3600 and using access code 665 807 945. Need further assistance? Contact SIA customer service at 800-950-9496.

VMS and BeyondModerator: Bryan Pena, VP of CW Strategy & Research, Staffing Industry Analysts

Guest Speakers: Jason Ezratty, Partner, Brightfield Strategies LLCTony Gregoire, Senior Research Analyst, Staffing Industry Analysts

Sponsored by:

©2012 by Crain Communications Inc. All rights reserved.

Who We Are

©2012 by Crain Communications Inc. All rights reserved.

• Nearly 700 client organizations benefit from our international research services

– 19 of the world’s 25 largest staffing firms are members

– 58 Buyers of contingent labor are members of our CWS Council, representing over $100 billion in annual contingent workforce spend

– Customers in more than 80 countries

• Founded in 1989

– Acquired by Crain Communications ($200M media conglomerate) in 2008

– Headquartered in Mountain View, California and London, England

– 80+ years of industry and advisory service experience among executive team

©2012 by Crain Communications Inc. All rights reserved.

Who We Serve

Staffing Providers Staffing & Process BuyersProcess Improvement Providers

CWS Council

CWS Council Members (partial list)

©2012 by Crain Communications Inc. All rights reserved.

Save the date for San Diego San Diego Hilton Bayfront San Diego, CA

September 18-19, 2012

September 20-21, 2012

©2012 by Crain Communications Inc. All rights reserved.

Thank You to Our Sponsor

©2012 by Crain Communications Inc. All rights reserved.

Stephanie BurnhamVice President, Marketing

Our Speakers Today

Please note: This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon.

If you continue to have trouble with the sound, you may dial into the call by dialing 1-408-600-3600 and using access code 665 807 945. Need further assistance? Contact SIA customer service at 800-950-9496.

©2012 by Crain Communications Inc. All rights reserved.

Bryan Pena,VP CW Strategy & Research, Staffing Industry Analysts

Jason EzrattyManaging PartnerBrightfield Strategies

Tony GregoireSr. Research AnalystStaffing Industry Analysts

State of the Industry- Latest Insights VMS

Tony Gregoire, Sr. Research Analyst

©2012 by Crain Communications Inc. All rights reserved.

2011 Global VMS Spend

> $100 Billion

Plateauing in VMS market?

Source: 2011 SIA Contingent Buyer Survey

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2004 2005 2006 2007 2008 2009 2010 2011

Core buyers using VMS

Spend per client

<$10M, 57%$10M-$50M, 28%

$50M-$100M,

7%

$100M-$300M, 6%

>$300M, 2%

<$10M, 53%$10M-$50M, 30%

$50M-$100M,

9%

$100M-$300M, 6% >$300M, 2%

2010 2011

Source: Staffing Industry Analysts

Spend per client

2010 2011

<$10M, 764$10M-$50M,

377

$50M-$100M, 100

$100M-$300M, 78

>$300M, 31

<$10M, 925$10M-$50M, 521

$50M-$100M, 151

$100M-$300M, 112

>$300M, 39

Source: Staffing Industry Analysts

Preliminary landscape data indicates continued strong growth

Source: Staffing Industry Analysts

$0

$10

$20

$30

$40

$50

2011 2010

Temp/contract VMS spend among reporting providers(billion, preliminary)

Preliminary landscape data indicates continued strong growth

Source: Staffing Industry Analysts

$0$2$4$6$8

$10$12$14$16

2011 2010

SOW & outsourced spend among reporting providers(billion, preliminary)

SOW Outsourced

VMS spend by MSP arrangement…growth across the board

Source: Staffing Industry Analysts

$0

$5

$10

$15

$20

$25

$30

Own MSP 3rd party MSP Other Resources

VMS spend among reporting providers(billion, preliminary)

2011 2010

Growth in emerging markets

2011/2010 Growth:

U.S. 20%-30%

Europe 20%-30%

BRIC >50%

Source: Staffing Industry Analysts

Last year we introduced……

©2012 by Crain Communications Inc. All rights reserved.

Company focus – average among VMS respondents

Source: Staffing Industry Analysts

0%

10%

20%

30%

40%

50%HR

Procurement

Operations

Finance

IT

Other

Variety of focus among individual respondents

Source: Staffing Industry Analysts

0%

10%

20%

30%

40%

50%HR

Procurement

Operations

Finance

IT

Other

0%

10%

20%

30%

40%

50%HR

Procurement

Operations

Finance

IT

Other

0%

10%

20%

30%

40%

50%HR

Procurement

Operations

Finance

IT

Other

0%10%20%30%40%50%60%

HR

Procurement

Operations

Finance

IT

Other

Current State-Latest Perspective Cutting Edge

Jason EzrattyManaging Partner

Brightfield Strategies

©2012 by Crain Communications Inc. All rights reserved.

Evolution of Technology

©2012 by Crain Communications Inc. All rights reserved.

Not All VMS Created Equally But Fit Matters Most

©2012 by Crain Communications Inc. All rights reserved.

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Configurability

©2012 by Crain Communications Inc. All rights reserved.

Branding

Workflow Steps & Behavior

Fields & Field Labels

Alerts & Notifications

Languages …50 consolidate

Currencies …172 consolidate

Fees … 270 charge flat amount

Rate Cards & Calculations

Discounts … 142 have early-pay

Sourcing/Bidding Model

Differentiated Configurations

Improved Quality, Stability, Security & Performance

©2012 by Crain Communications Inc. All rights reserved.

QA/QC

Consolidation of Code Base

Usability & Human Factors

Error Handling

Back-up & Disaster Recovery

Encryption

Redundancy

Advanced Network Monitoring

Mission Critical Standards

Contextual Data & Decision Support

©2012 by Crain Communications Inc. All rights reserved.

Candidate Flagging

Rate Intelligence

Worker Type Decision Support

Supplier Selection Support

Statutory-limit Discounting …102

Tenure-based Discounting …83

Volume-based Rebates …77

Integrating SOW Work & Workers

©2012 by Crain Communications Inc. All rights reserved.

178 programs use their VMS to profile SOW supplier

capabilities

112 programs track non-billable time for SOW resources

Integration to Support Specialized Transactions

©2012 by Crain Communications Inc. All rights reserved.

160 programs integrate directly with background screening providers

151 programs automatically activate/deactivate systems access

based on interface

36 programs integrate with location assignment systems

3 programs integrate with skills testing providers

2 programs integrate with Taleo

Enhanced Supplier Support Features

©2012 by Crain Communications Inc. All rights reserved.

7036 instances of suppliers configuring order routing to recruiters based on location; 5360 based on skill requirements

Future State-What’s Coming

Bryan Pena,VP CW Strategy & Research

©2012 by Crain Communications Inc. All rights reserved.

The Future? Disruptive Possibilities.

©2012 by Crain Communications Inc. All rights reserved.

Is Mid Market Next for VMS?

Source: 2007 U.S. Economic Census

Don’t forget the “Mega Deals”

Source: Staffing Industry Analysts

Is Integrated Talent Realistic?

©2012 by Crain Communications Inc. All rights reserved.

Converging Markets/SolutionsContingent Hire Permanent Hire

RPOMSP

Growth of RPO and HRO

Source: 2011 Contingent Workforce Buyers Survey

Social media could change everything?

©2012 by Crain Communications Inc. All rights reserved.

Learn this word….

Disintermediate - (dis-intr-mḗd-iat)

To attempt to do away with intermediaryentities between two primary market forces; to eliminate the middleman

©2012 by Crain Communications Inc. All rights reserved.

Company VMS/MSP Staffing Agency

Staffing Agency

Questions/Discussion?

©2012 by Crain Communications Inc. All rights reserved.

Thank You to Our Sponsor

©2012 by Crain Communications Inc. All rights reserved.

Stephanie BurnhamVice President, Marketing

Upcoming Webinars

©2012 by Crain Communications Inc. All rights reserved.

May 30, 2012 • MSP and RPO Contracts in Europe: Dealing with the Law

June 6, 2012 • Services Procurement

June 21, 2012 • Legs & Regs Legal Update

Save the date for San Diego San Diego Hilton Bayfront San Diego, CA

September 18-19, 2012

September 20-21, 2012

©2012 by Crain Communications Inc. All rights reserved.

Plenty of reasons to attend:

©2012 by Crain Communications Inc. All rights reserved.

Your opportunity to show off!

©2012 by Crain Communications Inc. All rights reserved.

High Level Program Process Overview:A. Submission to SIA by July 17, 2012.B. Workforce Strategies 3.0 and direct contact.C. Case study finalists will receive complimentary conference registration,

hotel for one nightD. Case studies will be presented as part of the keynote on September 20,

the first day of CWS Summit San Diego. We will present 7 to 10 cases, during the 75-minute keynote session.

H. Votes will be tabulated and winners will be announced on September 21,during the final session of CWS Summit San Diego.

I. Highest combined score wins an inscribed plaque and a 1-year North American Single Seat for CWS Council.

• Case study must be presented by end client company andhave company branding.Providers are encouraged to solicit client participation but are ineligible to submit on their clients behalf.

• Each company may submit multiple cases.For example, if Company “A” feels their rollout and policy changes are both innovative they can submit a separate case study for each.

• Company representatives must be at CWS Summit topresent as part of the Thursday, September 20 Keynote.Encouraged to be present at closing session where winning case will be revealed.

• Cases are to be submitted in PowerPoint format, ideally 7-10 slides, but can be as long or detailed as required/desired.- Presentation at CWS Summit will be limited to 7-10 minutes in length

- Reduced in length to no more than 3-5 slides

• Cases may be aggregated and consolidated to create research piece or conference leave behind.

Case Competition FAQ’s

For more information…

©2012 by Crain Communications Inc. All rights reserved.

casestudy2012@staffingindustry.com

Certification…..

©2012 by Crain Communications Inc. All rights reserved.

CWS Summit Keynote Speaker: Jon Huntsman

Globalization and the Effects on the US Workforce

©2012 by Crain Communications Inc. All rights reserved.

2013 CWS Europe in Berlin

©2012 by Crain Communications Inc. All rights reserved.

May 15-16, 2013 | Andel’s Hotel, Berlin, Germany

We want to know what you are thinking…..

Bryan PenaVP, CWS and ResearchE: bpena@staffingindustry.comP: 650-390-6188

©2012 by Crain Communications Inc. All rights reserved.