4 Ways AGS Helped Microsoft Achieve Workforce Transformation Success

In our recent AGS Live webinar – The Microsoft Model: Lessons in Workforce Transformation – we explored how Microsoft, through its contingent workforce management (CWM) partnership with Allegis Global Solutions (AGS), transformed its global workforce strategy, achieved remarkable savings and significantly increased diverse spend.  

With 30% program adoption and low visibility initially, the following were catalysts for Microsoft’s workforce transformation: 

• Costly and varied hiring practices – non-strategic and non-compliant buying behaviors and increased costs, with average bill rates exceeding market 

• Lack of visibility to contingent workforce – business stakeholders lacked self-service access to analytics and insights, hindering informed decision making 

• Driving diverse spend – misalignment with diversity, equity and inclusion (DEI) goals due to decentralized, unstructured approach 

• Poor and inconsistent user experience – decentralized approach led to poor and inconsistent experience for hiring managers, suppliers and workers 

The four key lessons learned from the changes to Microsoft’s managed service provider (MSP) program help serve as a blueprint for providing actionable insights on data, branding and process optimization; delivering bottom-line benefits; and expanding diverse talent channels worldwide.  

1. Addressing Hiring Managers' MSP Concerns 

Consistent Process Yields Visibility, Cost Management 

One of the significant challenges faced by many organizations, including Microsoft, is the reluctance of hiring managers to use MSP programs. Hiring managers often perceive the bidding process through the vendor management system (VMS) as time-consuming—leading them to work directly with staffing agencies outside the program. This issue was prevalent at Microsoft as well.  

Lora White, group program manager for North American talent services within Microsoft's procurement organization, highlighted the need for holistic program transformation at Microsoft, noting that before the workforce transformation with AGS, hiring managers had the freedom to procure contractor services directly from suppliers, which led to inefficiencies and higher costs.  

2. Implementing and Optimizing a VMS 

Utilizing Data Drives Compliance, Diversity 

Microsoft's journey with VMS implementation and optimization has been a collaborative effort with AGS. Before partnering with AGS, Microsoft had a decentralized approach to managing its contingent workforce, leading to challenges in compliance, cost control and visibility. Emphasizing the importance of data in building the business case for the workforce transformation, White pointed out that it was essential to collect data on spend, resource types and program adoption rates to demonstrate the benefits of centralizing procurement and driving cost efficiency, compliance and diversity.  

Ultimately, by centralizing the procurement process and mandating the use of the program, the workforce transformation partnership with AGS enabled Microsoft to streamline and optimize the VMS, thereby reducing costs, boosting efficiency and improving compliance.  
 

3. Expanding the Scope of the Program 

Improved Efficiency Leads to Global Rollout, Direct Sourcing  

Microsoft's contingent workforce program, managed in partnership with AGS, includes a comprehensive scope that covers staff augmentation, professional services and independent contractors. The program is designed to handle various types of resource-based contracts and engagements, ensuring that all third-party spend is managed efficiently.  

Crystal Price, a senior programme manager for EMEA talent services within Microsoft's procurement organization, and her team secured the first country mandate in Ireland by leveraging relationships with senior leadership and presenting a strong business case. This success helped build momentum for the global rollout of the program. Further, Price discussed the complexities of managing the program across multiple countries, emphasizing the importance of compliance with local labor laws and reporting requirements.  

Mark Bridge, an AGS programme executive in EMEA, discussed the preparation and planning required from the program office to support the mandate. This included ensuring the teams were ready, creating documentation and aligning messaging with the client. As a result of this process, the program's policies and procedures for engaging professional services consultants with deliverables are robust, ensuring that all engagements are compliant and efficient.  

Looking ahead, White and Price discussed future plans for the program, including expanding to more countries, improving efficiency through automation and AI, and enhancing control gates to ensure compliance. They also mentioned the potential for expanding the direct sourcing program. 
 

4. Centralizing Supply Chain Management 

Consistent User Experience Drives Strategic Growth  

The centralization of supplier management – as well as Microsoft’s strong partnership and clear communication with AGS – was a critical aspect of its workforce transformation. It was a rapid implementation process, which involved mobilizing resources, creating a change management plan and maintaining flexibility to adapt to challenges.  

As part of the workforce transformation, the selection, vetting and management of suppliers were driven centrally, ensuring consistency and compliance across the organization. Today, AGS continues to play a pivotal role in vetting and managing suppliers—making sure only the best-fit suppliers are part of the program. This centralized approach allows Microsoft to maintain high standards and drive strategic growth with selected suppliers.  
 

Benefits of the Microsoft Model to Workforce Transformation 

Microsoft's partnership with AGS has been instrumental in transforming its contingent workforce program. By addressing the challenges of hiring manager reluctance, optimizing the VMS, expanding the program's scope and centralizing supplier management, Microsoft has set a benchmark for efficient and compliant workforce management. AGS' expertise and collaborative approach have been key to this success, demonstrating their industry leadership in workforce solutions.