MI on Temp Labor in Northern and Western Europe

Dragon Sourcing Your Tailored Approach to Emerging Markets

MI on Temp Labor in Northern & Western Europe

Feb, 2018

www.dragonsourcing.com

Methodology, Category Definition & Scope Consultation with Industry Experts

Primary Sources Supplier Interviews

Reports and News/ Articles from Industry specific forums, websites, associations, blogs and publications

Secondary Sources

Analysis

Supplier websites, RFI and company reports

Category Definition

▪

Temporary Staffing Services

Contingent Labor

Temporary Labor

Consulting Firms

▪

Independent Contractors

Professional

Commercial

© 2018 Dragon Sourcing. All rights reserved.

2

Report Structure: ▪ Market Overview ▪ Top Suppliers & Market Coverage ▪ Cost Structure ▪ Pricing Structure Countries in scope ▪ Germany ▪ Switzerland ▪ Sweden ▪ France ▪ Italy ▪ Norway ▪ UK

Report on Temp Labor

MARKET OVERVIEW

© 2018 Dragon Sourcing. All rights reserved.

3

Industry Overview (1/2) Industry Snapshot

▪ ▪ ▪ ▪ ▪

▪ ▪ ▪ ▪

Global staffing market size: USD 404 billion in 2013 and USD 428 billion in 2016. Industry is projected to grow 6% in 2018 Demand Drivers: Client requirements are evolving continuously and looking for innovative solutions from staffing companies. Clients demand higher value from suppliers apart from cost reduction.

Supply Drivers: Deregulation and expansion of temporary staffing agency networks The number of employees with a temporary contract in the European region rose from about 24.5 million in2005 to 26.8 million in 2016 UK, Germany and France are highly industrialized and mature in terms of requirement and services. Staffing industry in UK, though highly fragmented (with about 15,000 firms), is the largest market in Europe, followed by France Growth in the UK is anticipated to drop in 2019 and this is attributed to Brexit Germany has a strong focus on manufacturing and industries with the metal and electrical sector being a major client to temporary employment agencies Sweden: Top 25 firms account for about 93.7% of the total Swedish staffing market Italy: Top 5 firms accounts for about 54% of the total Italian staffing market and industry is expected to grow at a rate faster than the global market

Source: Staffing Industry Analysts, Statista.com, theglobalrecruiter.com, onrec.com, weceurope.org, © 2018 Dragon Sourcing. All rights reserved.

4

Industry Overview (2/2) Industry Dynamics

Buyer’s view of the Staffing Services Industry

Supplier’s view of Digital Technology Industry

■ Staffing solutions are often viewed as a standard service until and unless the requests are specific to particular need ■ High Buyer Power: There are more number of suppliers providing staffing services, hence client possess greater ability to switch suppliers. Buyer can use the power to build relationship with the suppliers and get better service benefits/discounts.

■ Digital technology industry is likely to be highly attractive to the suppliers. However, if the relative value of account is low, emphasis is on building the supplier-client relationship to leverage further business opportunities. Suppliers are proactive in offering new solutions to their clients and are keen to benchmark costs and margins.

■ On the other hand, if the relative value of account is high, suppliers are likely to place considerable emphasis on responsiveness and service. There is transparency in costs and margins and the supplier is prepared to share future plans with the client.

Industry Trends

▪

▪ ▪

Mergers & Acquisition: With a positive operating environment across most industry sectors, an increasing number of staffing company owners are seeking to capitalize on their current strong performance. Recently, InGenesis Inc., US healthcare staffing firm, acquired Kelly Healthcare Resources, the healthcare specialty business of Kelly Services Gig economy: Companies are optimistic towards gig economy and engaging freelancers at a high rate Technology Adoption: A Mobile-first, Cloud-based, End-to-end Digital Platform, 'Adia' by the Adecco Group Meets Emerging Opportunities in the Staffing Industry. This new platform is likely to leverage Adecco Group's key strengths in the industry by providing scale, speed and agility to introduce new ways of doing business in the digital economy.

Source: Staffing Industry Analysts, Statista.com, onrec.com, weceurope.org, prnewswire.com, thestaffingstream.com, © 2018 Dragon Sourcing. All rights reserved.

5

SUPPLIER OVERVIEW

© 2018 Dragon Sourcing. All rights reserved.

6

Supplier Country Coverage (1/3) Germany

Switzerland

Sweden

France

Italy

Norway

UK

Supporting countries

The Adecco Group

7

Randstad Holding NV

7

Manpower Group

7

PageGroup plc

7

Alexander Mann Solutions

7

Gi Group SpA

7

IK Hofmann GmbH

3

Persona Services

2

KÖTTER Services

1

ZAG Zeitarbeits-Gesellschaft GmbH

1

Orizon GmbH

1

Piening GmbH

1

TEMPTON Holding GmbH

1

TP (Time Partner) Group Service GmbH

1

Global Personal Partner AG

1

Eupro AG

1

Careerplus AG

1

das team ag

1

Hans Leutenegger AG

2

Induserv Industrial Management Ltd

1

New Work human resources SA

1

Academic Work Sweden AB

4

Lernia Bamanning

1

Logent

1

Uniflex Bemanning

3

Arena Personal

2

StudentConsulting

2

Poolia

2

Total Suppliers for each country

© 2018 Dragon Sourcing. All rights reserved.

18

16

13

6

7

6

10

7

76

Supplier Country Coverage (2/3) Germany

Switzerland

Sweden

France

Italy

Norway

UK

Supporting countries

Synergie

5

Groupe Adéquat

1

Groupe Crit

3

Expectra

1

Leader Group

2

Groupe Actual

1

Groupe GR

1

GBO Human Resources

4

Headline

1

Umana

1

Openjobmetis S.p.A.

1

Porta Futuro

1

Lavoropiù SpA

1

Temp-Team AS

1

People

2

Fremo Bemanning AS

1

Mosaique

1

Activepeople

1

HIRE Norway AS

1

Ditt Vikarbyrå AS

1

De4

1

Jobzone AS

1

Hays plc

6

Robert Walters plc

4

REED Global

1

Impellam Group plc

3

SThree plc

5

Total Suppliers for each country

© 2018 Dragon Sourcing. All rights reserved.

7

8

2

12

8

7

9

7

53

Supplier Coverage (3/3) Germany

Switzerland

Sweden

France

Italy

Norway

UK

Supporting countries

Guidant Group

1

NES Global Talent Limited

3

Staffline Group PLC

1

Venn Group

1

Kelly Services, Inc.

6

Allegis Group

5

Robert Half International

4

Hudson Global, Inc

5

USG People

2

Trenkwalder International AG

2

Cielo

5

Brunel International

2

Total Suppliers for each country

8

5

2

7

Supplier Presence

Total: 165

Note: This is not an extensive list of suppliers in each country Š 2018 Dragon Sourcing. All rights reserved.

9

2

4

9

37

Supplier Profile (1) Few Suppliers covering all 7 countries in scope

Supplier

The Adecco Group

Randstad Holding NV

Manpower Group

PageGroup plc

Global Revenue (2017)

Focus Industries/ Job Functions

USD 24 billion

Accounting & Finance, Call center & Customer Service, Creative & Marketing, Hospitality, Human Resources, Industrial & Manufacturing, Medical, Office Clerical & Administrative, Retail & Sales, Science, Transportation, Warehousing

USD 22 billion

Call center, Engineering, Finance & Accounting, Healthcare, Non-clinical healthcare, HR, Industrial, Legal, Life Sciences, Marketing, Office & Administration, Technology

USD 20 billion

Aerospace, Agriculture, Chemical, IT, Construction, Energy, Financial Services, Food, Healthcare & Pharmaceuticals, Industrial & Manufacturing, Transportation & Warehousing, Trade, Retail, Hospitality, Administration

USD 1.62 billion

Actuarial, Tax and Treasury, Audit & Consulting, Banking & Financial Services, Buying & Merchandising, Consultancy, Design & Development, Engineering & Manufacturing, Environment & Energy, Executive Search, Finance, Health & Social Care, Life Sciences & Pharmaceuticals, Hospitality & Leisure, Human Resources, Insurance, Legal, Marketing, Offshore, Oil & Gas, Mining, Procurement, Supply chain & Logistics, Property, Construction & Facilities Management, Public Sector & Not-for-Profit, Retail, Sales, Secretarial & Office Support, Technology

Global Employee Strength

EU Presence

Website

33,000

Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, Turkey

www.adeccogr oup.com

32,280

Andorra, Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.randstad. com

28,000

Austria, Belarus, Belgium, Bolivia, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.manpowe rgroup.com

7,029

Albania, Austria, Belarus, Belgium, Belgium, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.page.com

Source: Supplier Websites

NA – Not Available

Š 2018 Dragon Sourcing. All rights reserved.

10

Supplier Profile (2) Few Suppliers covering all 7 countries in scope

Supplier

Global Revenue (2017)

Focus Industries/ Job Functions

NA

Business & Professional Services, Defense, Engineering & Manufacturing, Energy, Pharmaceuticals & Life Sciences, Investment Banking, Retail, Retail Banking & Insurance, Technology, Media & Telecommunications

Alexander Mann Solutions

Gi Group SpA

USD 1.8 billion

Public Sector, Manufacturing, Food Production, Warehouse, Logistics

Global Employee Strength

EU Presence

Website

3,500

Belgium, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, UK

www.alexander mannsolutions. com

2,900

Albania, Armenia, Azerbaijan, Belarus, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Finland, France, Germany, Greece, Hungary, Italy, Kazakhstan, Lithuania, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey, UK, Ukraine

www.gigroup.c om

Source: Supplier Websites

NA – Not Available

Š 2018 Dragon Sourcing. All rights reserved.

11

Supplier Profile (3) Few Suppliers headquartered at Germany

Supplier

Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

IK Hofmann GmbH (Hofmann Personal)

USD 928 million (2016)

Automotive, Energy, Metal, Aerospace, Electrical, Logistics, IT, Medical, Trade and craft industries

23,800

Germany, UK, Austria, Czech Republic, Switzerland

www.hofmann.in fo

NA

Trade, Automotive, Banks & Insurance, Manufacturing, Transport & Logistics, Telecommunications

18,000

Germany, Switzerland

www.persona.de

NA

Automotive, Chemical & Pharma, Utilities, Health Service, Trade, Property Managers, Correctional facilities, Credit Institutions, Mechanical & plant engineering, Museums, Public passenger transport services, Transport & Logistics

18,900

Germany

www.koetter.de/ en

ZAG ZeitarbeitsGesellschaft GmbH

NA

Craft, Industry, Metal Industry, Transport & Logistics, Medicine & Care, Hotel industry & gastronomy, Purchasing & Sales, Staff, Administration & Organization

10,000

Germany

www.zag.de

Orizon GmbH

NA

Industry, crafts & logistics, Office, finances & administration, Engineering, technology and IT

7,254

Germany

www.orizon.de/e n

Piening GmbH

NA

Commercial, Medical, Craft & Assembly, IT, Engineering

7,500

Germany

www.pieningpersonal.de

USD 226 million

Commercial, Business, Industrial Solutions, Medical, Outsourcing, Engineering, Aviation

6,000

Germany

www.tempton.de /de/home

NA

Manufacturing, Trade, Commercial, Health, Technology, Engineering

10,297

Germany

www.timepartner .com

Persona Services

KÖTTER Services

TEMPTON Holding GmbH TP (Time Partner) Group Service GmbH

Source: Supplier Websites

NA – Not Available

© 2018 Dragon Sourcing. All rights reserved.

12

Supplier Profile (4) Few Suppliers headquartered at Switzerland Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Global Personal Partner AG

NA

Logistics, Construction, Engineering industries, Production, Pharma, Chemistry, Life Science, Commercial / Retail, Commercial Jobs, Technical industry, Financial Services, Real Estate, Facility Management, Telecommunications, IT, Healthcare, Medicine

60

Switzerland

www.globalpersonal.ch

Eupro AG

NA

NA

Switzerland

www.eupro.ch/d e

Careerplus AG

NA

Finance, MR, Sales, Construction, Industry, IT, Health Service

150

Switzerland

www.careerplus. ch

NA

Automotive/commercial vehicles, Floor and wall coverings, Call center, Chemical/Pharmaceutical/Biotechnology, Facility Management/Real Estate, Horticulture, Engineering/Architecture, Commercial Jobs, Food industry, Mechanics/machine industry, Medicine, Metal construction/construction, Human Resources, Care/Obstetrics, Radiology, Cleaning/maintenance, Transport/logistics/warehousing, Watch industry

50

Switzerland

www.team.jobs

Hans Leutenegger AG

NA

Administration, Healthcare/ Medicine, Commercial/ Industrial, Engineering/ Technology, Construction, Chemistry

NA

Switzerland, Germany

www.hansleuten egger.ch/chde/Unternehmen /?oid=52&lang=d e

Induserv Industrial Management Ltd

NA

Construction, Industrial Production, Logistics, Maintenance & Installation

NA

Switzerland

www.induserv.ch /home

New Work human resources SA

NA

Building, Metal, Industrial & Technical, Watchmaking, Commercial, Agricultural and food

50

Switzerland

www.newworkhr.ch

Supplier

das team ag

Engineering/ Technology, Administration, Watch

Source: Supplier Websites

NA – Not Available

Š 2018 Dragon Sourcing. All rights reserved.

13

Supplier Profile (5) Few Suppliers headquartered at Sweden Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

USD 330 million

Economics & Law, Sales, Hotel, Tourism & Restaurant, Industry & Manufacturing, IT, Office & Administration, Warehouse & Logistics, Marketing & Information, Pedagogy, Customer Service

600

Sweden, Norway, Finland, Denmark, Germany, Switzerland

www.academic work.se

NA

Building construction, Economics & Administration, Trade & Service, Industry & Manufacturing, IT, Warehouse & Logistics, Restaurant, Technique, Health care, Basic Education

155

Sweden

www.lernia.se

USD 165 million (2015)

Automotive, E-commerce logistics, Project Logistics

3,000

Sweden

logent.se/en/ab out-logent

NA

Industries, Logistics, Construction, Electrical & Telecom, Administration & Offices, Sales and Customer Service

5,000

Sweden, Norway, Finland, Germany

www.uniflex.se

Arena Personal

NA

Construction & Real Estate, Economy, Vehicle, HR, Industry & Technology, Office & Administration, Warehouse & Logistics, Sales & Marketing, Transport, Pedagogy

NA

Sweden, Norway

arenapersonal. com

StudentCon sulting

NA

IT, Technology, Finance, Administration, HR, Marketing, Customer service, Sales, Industry, Production, Logistics and transport

NA

Sweden, Norway, Denmark

www.studentco nsulting.com/s e

USD 88 million

Finance & Accounting, IT, Office Support, Human Resources, Sales & Marketing, Life Sciences & Engineering, Legal

1,500

Sweden, Denmark, Finland, Germany

www.poolia.se

Supplier

Academic Work Sweden AB

Lernia Bamanning

Logent

Uniflex Bemanning

Poolia

Source: Supplier Websites

NA – Not Available

Š 2018 Dragon Sourcing. All rights reserved.

14

Supplier Profile (6) Few Suppliers headquartered at France Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Synergie

USD 2.2 billion (2016)

Industry, Service sectors, Construction, Transportation & Logistics

3,050

Belgium, Czech Republic, France, Germany, Italy, Luxembourg, Netherlands, Poland, Portugal, Slovakia, Spain, Switzerland, UK

www.synergie.co m/en

Groupe Adéquat

USD 1 billion

Manufacturing, Logistics, Construction, Transportation, Services

1,000

France, Belgium

www.groupeadeq uat.fr

USD 2.4 billion (2016)

Engineering, Technology, Industrial maintenance

6,800

France, Germany, Spain, Switzerland

www.groupecrit.com

Expectra

NA

HR & Legal, Bank, Commercial & Marketing, Accounting & Finance, IT & Telecom, Engineering & Industries, Supply Chain, Digital, Office of Studies, Audit & Accounting, Support Functions

400

France

www.expectra.fr

Leader Group

NA

550

France, Switzerland, Portugal, Luxembourg

www.groupeleade r.com

500

France

www.groupeactual .eu

Supplier

Groupe Crit

Engineering, Technology, Industry

Groupe Actual

NA

Aviation, Agriculture, Audit & Consulting, Automotive, Bank, Insurance & Finance, Construction, Communication & Media, Trade & Distribution, Electronics, Energy, Environment, Hospitality & Catering, Real Estate, Pharmaceutical, Textile, Naval, IT, Logistics, Mechanical, Health, Tourism & Travel

Groupe GR

NA

Consultancy, Auditing, Bank, Legal, Insurance, Real Estate, Food-processing, Distribution, Industry, Luxury Products

50

France

www.grinternationalprofiles.com/en

GBO Human Resources

NA

Capital Goods, Aviation, Agriculture & Food, Automotive, Construction, Chemistry, Electricity, Household equipment, Energy, IT, Mechanics, Medicine, Metal

NA

France, UK , Belgium , Luxembourg , Spain , Poland , Germany, Switzerland, Austria , Romania

www.gbohumanresources.c om

Headline

NA

Trade, Industry, Life Sciences, Banking, Construction, Naval, Agriculture, Energy, Food & Beverage, Pharmaceutical, Cosmetics, Luxury Goods, Digital Communication, Property

NA

France

headline.fr

Source: Supplier Websites

NA – Not Available

© 2018 Dragon Sourcing. All rights reserved.

15

Supplier Profile (7) Few Suppliers headquartered at Italy Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

NA

Information and communications technology, Health, Personal Services, Fashion & Luxury, Tourism & Catering, Agriculture & Food, Renewable Energy, Public Administration

800

Italy

www.umana.it

Openjobmet is S.p.A.

USD 512 million

Naval, Industrial, Family Care, Retail Trade, Bank & Finance, Health, Information and communications technology, Hotel, Restaurant & Catering, Agro – Industrial

570

Italy

www.openjobm etis.it/en

Porta Futuro

NA

NA

Italy

www.portafutur obari.it

Lavoropiù SpA

NA

NA

Italy

www.lavoropiu. it

Supplier

Umana

Engineering, Industrial, Information Technology, Technology

Healthcare, Agriculture, Pharmaceutical, Fashion, Sales, Retail Trade, Hotel, Restaurant & Catering

Source: Supplier Websites

NA – Not Available

© 2018 Dragon Sourcing. All rights reserved.

16

Supplier Profile (8) Few Suppliers headquartered at Norway Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Temp-Team AS

NA

Administration, Sales, Marketing, Accounting, Salary, Economics, Warehouse, Production, Logistics, School, Catering, Tourism, IT, Mechanical, Electrical, Wood, Engineering

NA

Norway

www.tempteam.no

People

NA

Building & Construction, Logistics & Transport, Industry & Engineering, Health, Education & Training, Office and administration

NA

Norway, Sweden

people.no

Fremo Bemanning AS

NA

NA

Norway

fremobemanni ng.no

Mosaique

NA

Oil, Engineering, Management, Consulting, Finance, IT, Technology

NA

Norway

www.mosaique .no

Activepeope

NA

Information Technology, Electrical, Mechanical, Technology, Industry, Administration

NA

Norway

www.activepeo ple.no

HIRE Norway AS

NA

Construction, Mechanical, Woodworking, Technical Engineering, Engineering / Engineering, Sales, Management, Cleaning

NA

Norway

www.hire.no

Ditt Vikarbyrå AS

NA

Office, Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

NA

Norway

www.dittvikarb yra.no

De4

NA

Insurance, Oil & gas, Retail trade, Tourism, Energy, Property & construction

NA

Norway

www.de4.no

NA

Administration, Banking & Financial, Construction, Engineering, Health, Hospitality, Information Technology, Technology, Naval, Food

NA

Norway

www.jobzone.n o

Supplier

Jobzone AS

Property, Warehouse, Electrical, Industry, Food, Healthcare, Construction

Source: Supplier Websites

NA – Not Available

© 2018 Dragon Sourcing. All rights reserved.

17

Supplier Profile (9) Few Suppliers headquartered at UK Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

USD 1 billion

IT, Accountancy & Finance, Construction & Property, Engineering, Office Support and Others

NA

Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, UK

www.haysplc.c om

NA

Accounting, Banking, Engineering, HR, IT, Legal, Sales & marketing, Supply chain and support fields

3,700

Belgium, France, Germany, Ireland, Luxembourg, Portugal, Spain, Switzerland, Netherlands, UK

www.robertwalt ers.com

REED Global

NA

Accountancy, Actuarial, Banking, Business Support, Education, Engineering, Finance, Health & Care, HR, Insurance, Legal, Procurement & Supply Chain,

2,982

UK, Ireland, Czech Republic, Hungary, Poland, Malta, Turkey

www.reedglob al.com

Impellam Group plc

NA

Accounting, Education, Administration, Legal, Health, Engineering, Technology, Commercial, Manufacturing, Warehouse

NA

UK, Germany , Switzerland

www.impellam. com

SThree plc

USD 1.2 million

Banking & Finance, Energy & Natural Resources, Accountancy, Information Technology, Engineering, Pharmaceutical & Biotech, Oil & Gas, Healthcare, Marketing, Procurement & Supply Chain

NA

Belgium, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Spain, Switzerland, UK

www.sthree.co m/en

Guidant Group

NA

Office, Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

NA

UK

www.guidantgr oup.com

NES Global Talent Limited

NA

Oil & Gas, Power, Life Sciences, Construction & Infrastructure, Manufacturing, Mining, Chemicals, IT

670

UK, France, Poland, Netherlands, Norway

www.nesgt.co m

Staffline Group PLC

NA

Accounting,, Transportation, Technology, Manufacturing, Engineering, Marketing, Agriculture, Finance

NA

UK

www.staffline.c o.uk

Venn Group

NA

Engineering & Infrastructure, Finance, Government & Not for Profit, Healthcare & Life Sciences, Housing, Legal, Technology

NA

UK

www.venngrou p.com

Supplier

Hays plc

Robert Walters plc

Source: Supplier Websites

NA – Not Available

Š 2018 Dragon Sourcing. All rights reserved.

18

Supplier Profile (10) Few Suppliers headquartered at other locations and serving any of the 7 countries in scope Global Revenue (2017)

Focus Industries/ Job Functions

Global Employee Strength

EU Presence

Website

Kelly Services, Inc.

USD 5.3 billion (2016)

Life Science, Energy, High-Tech, Finance & Insurance, Consumer Goods, Automotive, Manufacturing

8,100

Belgium, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Switzerland, UK

www.kellyservi ces.com

Allegis Group

USD 16 billion

Administration, Accounting, Finance, Sales, Store, Logistics, Transportation, Canteen, Service, Information Technology, Engineering

NA

Belgium, France, Germany, Ireland, Netherlands, Poland, Sweden, Switzerland, UK

www.allegisgro up.com

Robert Half International

USD 5.2 billion (2016)

Accounting & Finance, Office & Administrative, Technology & IT, Executive Search, Legal, Creative Marketing

16,100

Austria, Belgium, ​France, Germany, Luxembourg, Netherlands, ​Switzerland, UK

www.roberthalf .com

Hudson Global, Inc.

USD 100 million (2016)

Accounting, Education, Administration, Legal, Health, Engineering, Technology, Commercial, Manufacturing, Warehouse

NA

Belgium, Czech Republic, Denmark, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Ukraine, UK

www.hudson.c om

USG People

NA

Industry, Corporate Services, Transport, Trade, Public sector, Construction

NA

France, Netherlands, Belgium, Germany

www.usgpeopl e.com

Trenkwalder International AG

USD 888 million (2016)

Commercial, Business, Industrial Solutions, Medical, Outsourcing, Engineering

50,000

Austria, Germany, Switzerland, Liechtenstein, Hungary, Czech Republic, Poland, Slovakia, Romania, Slovenia, Serbia, Croatia, Bulgaria, Montenegro, Greece, Bosnia Herzegovina, Turkey

www.group.tre nkwalder.com/ de

NA

Healthcare, Life Sciences, Financial & Business Services, Engineering, Consumer Brands, Technology & Media

NA

Armenia, Slovakia, Belgium, Iceland, Bulgaria, Czech Republic, Denmark, Georgia, Finland, France, Norway, Germany, Greece, Hungary, Poland, Ireland, Israel, Italy, Portugal, UK, Moldova, Netherlands

www.cielotalen t.com

USD 982 million

Mining, Energy, Infrastructure, Oil & Gas, Engineering, High-tech, Automotive, Construction, Manufacturing, Finance, IT & Telecom, Legal, Healthcare, Marketing & Communication, Rail, Pharma, Electrical, Aerospace, Shipbuilding, Machinery & Plant, Energy & Power plant

10,000

Netherlands, Germany, Belgium, Austria, Czech Republic, Switzerland

www.brunelinte rnational.net/e n

Supplier

Cielo

Brunel International

Source: Supplier Websites

NA – Not Available

© 2018 Dragon Sourcing. All rights reserved.

19

PROCUREMENT MODELS

© 2018 Dragon Sourcing. All rights reserved.

20

Evolution of Staffing Services 1990s to 2008

2008 to Present

Decentralized

Preferred Suppliers

Master Vendor

■ Several suppliers ■ Procurement done on an ad-hoc basis ■ Management done internally

■ Selective set of suppliers ■ Contracts in place ■ Service level agreements (SLA's) in place

■ One supplier (possibly managing second and third tier suppliers) ■ One point of contact ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process

Managed Service Provider (MSP)

Total Talent Management

■ Contingent workforce spend under management ■ One point of contact ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process ■ Non-compliant spend elimination ■ Total cost of ownership savings

■ Total workforce spend under management ■ Complete workforce visibility ■ Direct cost savings on bill rate and usage ■ Customized SLA's and process ■ Non-compliant spend elimination ■ Increased total cost of ownership savings ■ Additional productivity and process savings ■ High degree of value added services

Source: Staffing Industry Analysts, Industry articles © 2018 Dragon Sourcing. All rights reserved.

21

Engagement Models Typical Engagement Models

▪ ▪ ▪

Prevalent engagement models in the staffing industry are Master Vendor, Vendor Neutral and Hybrid Engagement models vary based on the client requirement and supplier’s position in the client’s portfolio Suppliers are willing to attain Preferred (PSL) status as one of a number of suppliers Client Requirement – Scenario Permanent Recruitment Services

Best-in-Class Engagement Model Recruitment Process Outsourcing

Temporary and/or Permanent

Managed Services

Contingent workers and supply chain management

Statement of Work

▪ Latest Trends

▪

Companies have started adopting Internally Managed Programs (IMPs) to Optimize Contingent Labor.

Adoption rate currently is around 33% globally. Internally Managed Program (IMP) is viewed as the contingent workforce management (CWM) approach of the future.

Buyers are looking for more strategic business partner value, true vendor neutrality, effective benchmarking and reporting, best practices and expanded supply chain options with digital platforms

Source: Staffing Industry Analysts, Supplier Interaction, Supplier Websites, Industry articles, spendmatters.com © 2018 Dragon Sourcing. All rights reserved.

22

Pricing Models Available Pricing Models

▪ ▪

Pricing models depend of the structure of the proposition, however typically a mark-up pricing model is widely adopted Various pricing models used in the industry are One-time Fee/ Fixed Fee pricing model, Hourly Fee pricing model and Mark-up pricing model: Price is calculated based on the pay rate to the candidate, pass through costs and profit (i.e.: Pay rate + Markup including Pass through costs like taxes, Fixed Pass through costs, Gross Profit)

Client Requirement – Scenario

Best-in-Class Pricing Model

Vendor-neutral managed service provider(MSP)

Percentage of spend under management

Managed Service Provider (MSP)

Gain-share pricing model

Managed Service Provider (MSP)

Cost plus pricing model

Source: Staffing Industry Analysts, Supplier Interaction © 2018 Dragon Sourcing. All rights reserved.

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Cost Structure Size and Scalability of the Account from Supplier’s Perspective plays a big role in the total cost

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Cost involved in the sourcing of candidates holds a major share in the overall cost. Higher demand volumes reduces cost The mark-up percentage depends on a variety of factors including types of workers and skill sets, market demand, buyer's knowledge, duration of assignment, volumes of business, statutory expenses etc. Typical markups range from as low as 20% to 50% or more.

Factors like statutory expense rates don’t provide room for negotiation. On the other hand, buyers can negotiate on the benefits.

Key Insights

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Suppliers develop cost model based on the client’s anticipated volume and knowledge relative to the applicable billing rates Staffing agencies are willing to work on custom cost model for each client depending on the RFP structures, , differing rate management approaches, volume of business, etc.

Continuous evolution of industry demands, rapid changes in the digital marketplace and economy, high competitive nature of the industry, very less barriers to entry into the industry are considered to be the major drivers for agencies to develop custom cost model

Source: Staffing Industry Analysts, Supplier Interaction, © 2018 Dragon Sourcing. All rights reserved.

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