11 August 2010 | Lindsay Clark

Engineering and technology firm Siemens has signed an outsourcing deal with SourceRight Solutions to manage the contracting of temporary staff recruitment agencies.

Under the terms of the deal, SourceRight will oversee a procurement programme to recruit contingent labour, including temporary workers, freelancers and consultants, in Siemens’ healthcare and industry divisions in the US. A third division covers energy.

Doug Cutrell, director of global sourcing of Siemens, said the agreement created an open-book arrangement with the suppliers that provided greater transparency than before.

“They were chosen to help us consolidate and move our contingent labour procurement strategies to a single platform,” he said. “They have demonstrated ability to run complex managed services for companies worldwide and their commercial model invokes true transparency, providing an open-book relationship for the supplier and the customer.”

The managed service programme is expected to enhance compliance, increase efficiencies, improve cost-effectiveness and centralise management for the procurement of contingent labour positions.

Neither Siemens nor SourceRight would confirm the price or length of the deal.

SourceRight, however, claimed its approach would help suppliers and Siemens gain a clear view of the programme’s financial structure, achieve cost savings and increase efficiencies, while delivering high-quality personnel. For example, the deal would “break out” statutory costs such as state, unemployment, social security and workers’ compensation to improve transparency and minimise risk exposure.

The programme will encompass Siemens’ healthcare and industry operations in nearly all of the 50 states, as well as Canada and Puerto Rico.