Organizations today face two significant challenges in managing their workforce effectively: limited visibility into effort patterns and insufficient insights to improve efficiency, streamline tasks, and boost productivity. These issues hinder operational effectiveness and contribute to increased costs, particularly in outsourced engagements.
The Challenges: Vendor Workforce Management
“Despite vendor requests for additional resources, productivity often remains stagnant, leading to higher costs and diminishing returns,” says Brendan Maree, VP & Country Manager ANZ, ProHance. Vendor workforce management has emerged as a critical concern as outsourced teams become less efficient while expenses climb.
The Solution: Conducting a Pilot Study for Optimization
Organizations can address these issues by conducting a pilot study on a subset of vendor resources within a Time & Material (T&M) or Full-Time Equivalent (FTE) billing engagement. This approach helps identify underutilized capacity, allowing businesses to:
- Achieve significant cost savings by optimizing team size.
- Improve efficiency and allow teams to clear backlogs without increasing headcount.
ProHance helps redefine Service Level Agreements (SLAs), benchmark productivity, and create a single source of truth for outsourced engagements, enabling enterprises to reduce outsourcing costs by at least 20% within a quarter.
How ProHance Transforms Workforce Productivity
For T&M and staff augmentation models, ProHance offers data-driven insights to:
- Identify gaps between billed and actual work hours.
- Analyze team utilization to ensure optimal workforce size.
- Minimize overtime and reduce unaccounted absenteeism.
- Detect skill and rate mismatches (location, grade, expertise).
- Shift from T&M to fixed-bid or output-based pricing models.
- Optimize vendor selection based on cost-adjusted productivity, not just cost.
- Increase workload capacity without adding headcount.
- Leverage work pattern analysis to predict delivery timelines.
By utilizing ProHance’s data-driven insights and streamlining vendor management, businesses can significantly reduce costs, improve efficiency, and ensure optimal utilization of resources across the board.
