While many industries work incredibly well under an Managed Service Provider (MSP), higher education organizations are able to get unique benefits from the use of an MSP. With this kind of program and talent management, any university organization can build what works best for them in order to optimize their talent supply chain and allow their organization to reach its full potential. This is exactly what happened to one of DZConneX's clients, a renowned higher education institution.
As one of the world’s most prestigious higher education institutions, this university was looking to keep pace with its standard of excellence by doing a complete overhaul of its contingent labor model. After more than 50 years, this client was tired of having a fully decentralized program. This had led to numerous challenges over the years including increased costs, inconsistent contract language and mark-up rates, lack of candidate quality, compliance risk and more.
In order for a new contingent program to be successful, the university needed to identify the right partner who would take the time to understand their needs. The right partner would also need to have the capability to deliver a comprehensive total talent solution and pull together to create a strategic 5+ year solution roadmap for how to expand the program while working at a fast pace.
Based on the client’s needs, DZConneX (DZX) proposed and implemented a vendor-neutral Managed Service Program (MSP) model powered by an industry leading VMS technology. In the past, each university manager would choose which supplier they wanted to work with, which ultimately limited visibility and competition to qualified candidates, driving up the cost to the university while driving down candidate flow and supplier engagement. After years of inconsistent service delivery models, the university was ready for an upgrade to a fully-visible vendor model would drive the best end user value for both hiring managers, suppliers, and the institution as a whole.
This model and partnership would support all elements of solution design, change management, and innovation, including thorough discovery into all existing teams, systems, and workflows across 13 institutions and central administration functions. It would also support VMS system configuration, testing, and training for hundreds of end users, a reduced number of suppliers and more.
To ensure strategic alignment for a successful program expansion, DZX and the client created a 5-year program roadmap to help provide an agile framework for how the program would development and grow over the years. You can read more about this roadmap here.
The business impact of this vendor-neutral implementation has been touted as one of the most impactful organization-wide change initiatives implemented in recent history at the university.
DZX delivered $11+ million in accumulated cost savings, which represents 7.5% of total program revenue and spend under management increased from $5 million to $66 million within a 4 year timeframe. Of the $66 million in annual spend, 70% of this spend has been generated through diverse suppliers – which speaks to the shared core value of diversity within the university and DZX.
The successful partnership and program success can be attributed to the shared organization values and true grit and dedication on behalf of both teams in working to achieve a common goal. This shared success was memorialized with a 3-year contract renewal earlier this year. As the partnership between DZX and the university only continues to grow, the future looks bright for how we can set the standard for total talent programs within the higher education industry and we look forward to the bright future ahead.
View the full case study to learn more about the success between DZConneX and this higher education institution.