Record Year for Contractor Management Services
Contractor Management Services achieves record year as contracting companies expand use of third party software compliance tools and administrative services to administer their independent contractors.
Phoenix, Arizona—February 12, 2016– Contractor Management Services, LLC (“CMS”), the leading provider of compliance software tools and third party administrator of settlement services to contracting companies that use independent contractors today announced a record number of new customer wins for the company in 2015. Customers choosing CMS as a partner did so to reduce cost, better manage risk and eliminate non-strategic workflows. Based on feedback from customers transitioning to the CMS’ ICM Power® platform, reducing the cost to administrate services for independent contractors was cited as the number one pain point, while reducing risk exposure through better controls and transferring error-prone business processes such as settlement were cited as secondary drivers in the decision to outsource to CMS. With the increased regulatory scrutiny on compliance driving growing demand for its solutions, and institutional investment support from Boston-based private equity firm Riverside Partners, CMS has continued to invest in its business by expanding its executive, customer support and product develop teams.
Saving money is still the primary reason customers utilize third party compliance automation solutions.
CMS’ solutions leverage Cloud-based software to automate back office tasks with a scale solution, thereby reducing administrative costs for CMS’ customers. By implementing CMS solutions, customers have realized cost savings ranging from $250,000 to more than $1 million annually by choosing to outsource workflows such as independent contractor onboarding, payment settlement, and management of insurance coverages.
Improved risk management, and shedding non-strategic workflows ranked as close second and third reasons to utilize CMS solutions, respectively.
CMS expects another record-setting year in 2016
When using independent contractor work forces, compliance with federal and state as well as corporate regulatory policies requires sophisticated controls and consistent processes. In 2015, contracting companies reported that the motivation to outsource these functions to third party administrators provided them with greater assurance that policies would be followed correctly, and in a timely manner. Furthermore, by applying automated software solutions to the management of workflows for independent contractor management and compliance, contracting companies were able to increase their focus on core functions that drive growth in their businesses. As a result, in 2015, CMS processed over $1 billion in settlement value.
“Contractor Management Services is a critical partner and helps XPO reduce transactional costs while standardizing our processes”, said Ben Faino, General Counsel of XPO Last Mile. “Outsourcing non-strategic functions provides a significant cost savings for XPO as well as allows us to focus on our core competency of delivery excellence,” he added.
customers have realized cost savings ranging from $250,000 to more than $1 million annually
“Without fail, each customer that we onboard confirms that some combination of reducing costs, managing risks and eliminating non-strategic tasks from their workloads are the reasons for partnering with CMS,” said Shirley Duran, head of professional and customer services at CMS. “When they see how we take on the burden of administration for settlement and insurance services, they appreciate the savings and the reduction in the hassles common to managing these area of their businesses.”
CMS expects another record-setting year in 2016, driven by continued growth in its core business as well as expansion into trucking and home healthcare markets, all while maintaining its focus on reducing administrative hassle and improving compliance for its customers.
Contractor Management Services (“CMS”) is the leading provider of services and software technology solutions that eliminate the burdens of payment processing, back-office administration and managing compliance workflows for contracting companies using independent contractors. CMS’ ICM Power® platform combines SaaS technology and workflow expertise to help our clients meet the requirements complex state and federal regulations regarding independent contractors. Our cloud–based service offering has managed billions of dollars in processed transactions, while proving valuable back-office solutions for independent contractors to manage their businesses. CMS is a portfolio company of Riverside Partners www.riversidepartners.com, a Boston-based private equity investment firm. For more information, visit www.ictherightway.com