Supporting an international oilfield
services client with their UK
workforce strategy

Our client, an oilfield services organisation, is the world’s leading supplier of technology, integrated project management and information solutions, operating in more than 85 countries worldwide.

Challenge

Our client presented TAPFIN with a number of critical challenges to address. These included:

  • Control and visibility of contingent workforce spend – prior to programme implementation, our client’s spend was £15m+ per annum. There was limited visibility of supplier spend across the business, or knowledge of whether spend related to contingent labour or permanent project work. Further, there was no control of mark-ups and contractor pay rates, resulting in inconsistent charge rates across the supply base
  • Risk and liability of direct contractors – due to the skills shortage in the oil and gas market, the client employed a high number of direct contractors and were concerned about their business risk associated with co-employment claims
  • Business continuity, process alignment and efficiencies – our client’s organisation is made up of a high number of companies acquired through business acquisitions. Before engaging with TAPFIN, there was no alignment of processes and minimal business continuity plans
  • Compliance – risks were not being effectively managed or monitored.

Solution

  • Control and visibility of contingent workforce spend – TAPFIN consolidated and reported back on spend figures, identifying inconsistencies and where individual suppliers were overcharging
  • Risk and liability of direct contractors – TAPFIN were able to draw on their knowledge of legal action and case studies within this field and work with our client to review their systems (such as SAP) and make recommendations
  • Business continuity, process alignment and efficiencies – TAPFIN worked with multiple divisions to review and understand business needs. For example, TAPFIN worked with a division that has volume offshore contractor requirements to provide process efficiencies, leading to cost savings and compliance visibility across the contractor workforce
  • By implementing a MSP solution, non-compliance became visible to the client and was effectively managed by engaging with hiring managers; providing solutions and training on how to avoid non-compliance across the business. For example, TAPFIN identified a UK supplier providing contractors in Asia without monitoring, controlling visa applications or taxation for non-UK work, and highlighted the associated and risks and implications to the client.

Results

  • TAPFIN were instrumental in contract implementation and negotiations by reducing overspend
    • TAPFIN have also highlighted other cost savings initiatives that will continue to provide additional cost-savings for our client
  • Direct contractors were identified for transition to a third party payroll service, thereby transferring risk and ownership to a third party
    • TAPFIN were also able to offer a payroll service solution at a lower rate than incumbent suppliers
  • Closer monitoring and auditing of suppliers
  • The success of the process and compliance programmes resulted in our client requesting further support of a global direct hire programme, across 80+ countries worldwide.

£500,000+

total costs savings

300+

contingent positions filled

11.35

days – time to fill contingent worker average