Strategic transformation in Services Procurement

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Bringing clarity and control to Services Procurement

A major US finance company worked with its largest technology supplier under a Services Procurement model, supporting more than 900 contract workers. The structure was complex, with extensive governance and a high volume of manual activity.

Managing Statement of Work (SOW) development, Internal Risk Assessment (IRA) documentation, milestone tracking and Purchase Orders (PO), consumed significant time and limited productivity. This slowed cycle times and delayed payments. The client set a clear objective: restore control, improve transparency and reduce process friction while maintaining appropriate oversight.

Redesigning the model for speed and control

Pontoon's review found that many engagements operating under a Services Procurement were more appropriately classified as Staff Augmentation. To address this, we partnered with the client and its largest technology supplier to pilot a new operating model called Staff Aug+.

Under this approach, selected workers moved from a fixed-capacity Services Procurement model to a time-and-materials engagement structure within the VMS, ensuring accurate classification and greater visibility of workforce spend.

To support accurate processing on an ongoing basis, our team delivered:

  • Trainings for hiring managers on the distinction between Services Procurement and Staff Augmentation.
  • Guidance on spend classification to improve financial visibility and reporting accuracy.
  • Change management support across business units to drive consistent adoption.

Automation replaced manual effort across SOW management, IRA documentation, Purchase Order processing and milestone tracking, while timesheet-based billing improved transparency and accountability.

What began as a single pilot scaled to six additional partners, building stability across the supplier ecosystem.

Transforming supplier management and spend visibility

The redesigned model delivered immediate results:

  • Cycle times dropped by 50%, allowing sourcing to begin as soon as financial approvals were completed.
  • Manual tasks were eliminated, replaced with automated workflows and transparent, timesheet‑based billing.
  • The model expanded from one supplier to seven, creating a more consistent approach to workforce classification and spend management.
  • Within the first year, Staff Aug+ spend reached $20.29M, representing 16% of total Staff Augmentation spend.
  • The new approach strengthened compliance, improved supplier relationships, and increased visibility of workforce spend.