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Excessive Costs
Many contractors were engaged during better market conditions. Today’s market cost has changed. Perhaps the job or the need for it has changed as well. You may be paying for contractors or consultants that are over-priced for today’s market or for the job currently being performed. For example, the original job may have been for a network consultant or IT software designer but today that same bill rate is being paid for performing monitoring or maintenance tasks only.
Using APC’s CLASS process (Contingent Labor Assessment, Standardization, and Sustainability), these positions are assessed to:
- Ensure the engagements’ costs are aligned with current requirements of the job.
- Ensure the engagement’s costs reflect current market conditions and not when they were bought.
- Verify that non-employees "hidden" behind SOW’s or maintenance agreements have real checks and balances’ relative to their cost
- Determine if contractors have been engaged to fill permanent positions
- Determine if high concentrations of non-employees are in areas that would better be outsourced
- Provide visibility of total spend to promote better decisions
- Standardize wage rates for common positions
CLASS is not a program designed to eliminate the use of non-employees, but rather to bring visibility and standardization to this workforce.
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