There are3 compelling reasons why clients should NOT source their own contract resources:
"Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity." Nancy Pearcey
At first it seems counter intuitive, but if you think about it, the competitive process will almost always give you the best price.
Our experience at Eagle would demonstrate that "client sourced" contract resources cost 10% more, on average, than contractors sourced in a competitive process. Don't take our word for it, do a little investigation yourself!
Experts offering "shop in your own database" options sell their clients on the concept of saving agency fees. Don't get blind-sided. What matters is what you actually pay all-in, not what you pay the agency
A hiring manager who identifies a contractor to do some work has a vested interest in their success ... that can create governance issues.
Will they be subjective that they are choosing the best person for the job?
Will they be willing to make tough decisions as quickly as an agency sourced contractor who is not performing?
Will they negotiate the best rate or just pay what the contractor asks? (Part of the reason for the price differential.)
In Canada the CRA are very interested in contractor relationships. If you sourced the person and pay them then are they your employee?
Do all of your hiring managers truly understand the risks associated with contractor mis-classification?
Do your processes fully protect your company?
"Data beats emotions." Sean Rad
If those "compelling reasons" were not enough, then consider this:
The staffing industry is a $13 Billion industry in Canada designed to find talent for their client in a hyper-competitive market.
Do you want to recreate that capability within your organisation, or should you focus on your core capabilities?
Will your internal sourcing be as competitive as companies designed solely for that purpose?
What is the cost of your internal recruiting organisation?
Do you measure that cost against "saved agency fees" or against "reduced contractor spend"?