Statement of Work (SOW)

A Statement of Work (SOW) is a document that establishes work activities, deliverables, pricing and timelines between a vendor and the client. An SOW is usually an exhibit to an MSA.

RightSourcing provides competitive bidding services for milestone, deliverables and hourly based SOW’s. The ability to track and manage SOW spend provides savings of 10-15%, risk mitigation, and fiscal and operational controls.

What do SOWs address?

  • The purpose of the project
  • The scope of the project
  • Deliverables and timing
  • The pricing of the initiative
  • SLAs and KPIs
  • Establish payment schedule
  • Terms and conditions 
  • All necessary signatures

What is under the SOW umbrella?

Independent contractors are usually engaged for unique subject matter expertise.  They may work on-site or remotely, and engagements are usually based around a specific deliverable for a defined project. Examples: Owner-operated, fewer than 5 employees

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Consulting Firm
Typically with a consulting firm engagement, you are working with a set group of contractors.  These could be small, mid-sized, or large vendors, and deliverables or due dates are typically established. Examples: IT Consultants, Photographers, Marketing, Management Companies
Strategic Partner

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Strategic Partner
A strategic partner performs functions not found in-house.  They typically occupy onsite space, and a unique payment structure (retainer) is established.  System access is generally not required. Examples: Tax/Legal Consultants, Auditors, Regulatory Affairs

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Outsourced Services
These engagements include functions outsourced to a specialty provider.  They are multi-year engagements.  They can be onshore, off shore, or near shore, and generally charge a fixed monthly or annual fee. Examples: Helpdesk, Call Center, Cafeteria, IT Support

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IT staffing and SOW projects for healthcare organizations

RightSourcing’s vendor-neutral managed service approach to IT staffing and deliverable based projects leverages a vast supplier network. This network is the key to sourcing the best talent and statement-of-work (SOW), deliverable-based engagements mitigating compliance risks while remaining competitive. The RightSourcing advantage for IT managers is the ease of a centralized system for invoicing, tracking and reporting on all outsourced labor engagements regardless of structure or IT staffing supplier. Candidates can be supplied quickly and confidently on-boarded with minimal risk.

Our IT Vendor Management approach encompasses all areas of staffing contract technology positions, including supplemental staff to maintain productivity for ERP projects. RightSourcing also provides full lifecycle management to SOW projects, from the competitive bidding and selection process through compliance oversight and processing payments. 

RightSourcing is a vendor-neutral MSP, so all qualified IT staffing suppliers and consulting firms have an equal opportunity on a level playing field, ensuring high levels of supplier participation. Because hiring managers can work with existing suppliers and known candidates, IT Managers’ satisfaction is also ensured. We treat our staffing suppliers as clients and consistently achieve a 98 to 100 percent adoption rate in all programs.

For SOW projects, RightSourcing can partner with healthcare clients to ensure total project management.  We can do this by standardizing SOW procedures and creating templates for use within the preferred VMS technology.  Project details, contract clauses, project characteristics, and workers can be stored in the tool to enhance transparency and budgetary spend.  

SOW sourcing tools include the ability to create project-based requisitions, a questionnaire to manage bids within the VMS tool, to attach RFPs and project documents, to collaborate and approve documents, to distribute to suppliers, and to review, rank, and score proposals. SOW engagement tools include the ability to select the supplier, award business, negotiate terms and conditions, and finalize milestones and payment schedules. IT staffing and SOW management is made easy using RightSourcing’s managed services.

Benefits of SOW Management 

Total SOW Spend Visibility

  • Many types of SOWs, complex pricing arrangements, large scale engagements all tracked via the VMS and supported by the MSP
  • Better understanding of contingent labor activity
  • Detailed information
  • Deliverables & Workers
  • Contract structure & Timelines
  • Vendor performance measurements
  • Enables informed decision making

Efficiencies and Cost Savings

  • More access to data, benchmarking
  • Focus on areas for cost savings
  • Which suppliers, projects and pricing methods might yield the best rates
  • Competitive-bidding, process improvements, and supplier optimization can drive savings of 10% - 15%
  • Well-balanced, high performing SOW supplier pool
  • Drives competitive bidding
  • Allows manager to find the provider that works best within the confines of the budget


  • Experience with SOW projects across 350 client facilities
  • Strategic partnerships with 2,600+ suppliers to ensure quality and competition
  • Proven performance including best practices in SOW management
  • Rated #1 in the industry in Reporting & Analytics and Rates & Benchmarking by Gartner
  • Wand rated as industry-leading VMS technology by Gartner and Forrester, including unmatched Wand Mobile platform for speed of execution / time savings