The Global Contingent Workforce Management Market size is expected to reach $325.7 Trillion by 2028, rising at a market growth of 10.1% CAGR during the forecast period.
Effectively locating and involving non-permanent employees in a firm is contingent on workforce management. Tasks like recruiting and allocating are part of it. A company may grow due to the flexibility of this labor. Although customers may be required to give independent contractors a good amount of autonomy over the project, it is crucial to regulate the quality of their job because the firm is ultimately responsible.
To put it mildly, the composition of non-permanent labor is complicated. Yet it has several benefits, including the capacity to scale resources quickly and access to specialized expertise, as well as the flexibility to fulfill projects and satisfy seasonal demand. But, the full potential of contingent labor cannot be realized without efficient administration. As an illustration, resources in one business area could satisfy a need in another. Given the non-permanent workforce’s flexibility, CWM must ensure employees have a great experience.
The experience of contingent labor is just as crucial as the experience of company employees. Their encounters with the firm affect its reputation and can determine whether a person would consider returning to work for the company or accepting a permanent position should one become available. Whether they would suggest working for the company to friends and family is also based on their experience. One must ensure that each contingent workforce member receives the assistance they require, which will change depending on the kind of contingent worker.
COVID-19 Impact Analysis
COVID-19 has brought about several concerns that have resulted in significant economic losses as several enterprises all around the world have come to a halt. Due to employee health problems and a decline in the industry for IT services, the demand for contingent workforce management reduced. The establishment of new projects for contingent labor management has been hampered by the economic slump since the bulk of government financing was transferred to the healthcare industry due to the COVID-19 rapid spread, which had a significant negative influence on the market.
Market Growth Factors
Reduced Company Expenses
Workers who are contingent frequently have a high level of specialization. Organizations may occasionally require specialized professionals for certain initiatives, but rarely on a regular basis. Companies can hire contingency workers to assist them rather than investing money in internal employee training. Working with a contingency specialist has the additional advantage of their typical wealth of knowledge. The assistance they provide in reducing the company’s operating cost is expected to boost the contingent workforce management market’s growth in the projected period.
Grown work flexibility can be an advantage propelling growth
Employees all over the world increasingly appreciate flexible work schedules. Flexible alternatives boost productivity and the amount of time a person spends working. Flexible work schedules are advantageous for both employers and employees. Flexibility at work aids companies in luring top personnel. During economic expansions, higher profit margins are generated, and the use of contingent labor allows for the preservation of capital during crises. Today’s corporate climate is evolving, thus, small firms need to be flexible and prepared to respond to shifting circumstances. These variables are expected to surge the market expansion for contingent workforce management.
Market Restraining Factors
Issues with contingent workforce management
Counterparty risk includes solvency risk, inherited responsibility resulting from lax operational controls, and vicarious liability resulting from lax labor law compliance. A network of direct and indirect suppliers is frequently part of an organization’s general strategy for its contingent workforce. Due to this, second or third-level counterparty risks may not present in the regular interactions between employers and workers. Hence, these issues with contingent workforce management are expected to hamper the market growth.
Based on type, the contingent workforce management market is segmented into permanent staffing and flexible staffing. The flexible staffing segment witnessed the largest revenue share in the contingent workforce management market in 2021. This is because businesses employ flexible staffing to manage their contingent workforce management. HR and other divisions utilize contingent workforce management as an alternative to hiring permanent workers to address shifting business and operational concerns. Flexible employment also encourages flexibility, optimizes costs, and expedites hiring desperately required talent as companies adjust to shifting business requirements and emergencies.
On the basis of end-use industry, the contingent workforce management market is divided into telecom & IT, BFSI, healthcare, manufacturing & automotive, business/professional service, retail trade, pharma/biotech/medical equip, government & public sector, transportation & logistics, real estate & rental leasing and others. The telecom & IT segment acquired a prominent revenue share in the contingent workforce management market in 2021. This is due to its usage to employ contingent workforce in the IT & telecom sectors. Occasionally they are used directly, via a recruiting agency, or through a consultancy company. In addition, sometimes businesses develop a talent pool of temporary employees they may draw from as necessary.
Region-wise, the contingent workforce management market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region dominated the contingent workforce management market with maximum revenue share in 2021. This is because of the pandemic which caused a substantial need for labor management in the area. In addition, due to remote working and layoffs during the pandemic, businesses implemented digital management solutions at an increasing rate. The rapid industrialization and the requirement for labor management are expected to drive the market’s growth in the projected period.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Coupa Software, Inc., Ramco Systems Limited, Avature Limited, Beeline (New Mount Capital), The Bowen Group, CXC Global, Zeel Solutions Ltd., and Magnit (EQT AB)
Strategies Deployed in Contingent Workforce Management Market
Oct-2022: Beeline took over Utmost, a firm that specializes in providing clients with insights into their workforces, both employee and nonemployee. Through this acquisition, Beeline would be able to align this step and further fasten its strategic roadmap and provide unique and clever solutions to its customers.
Sep-2022: Beeline came into partnership with Pesante Analytics LLC, a consultancy specializing in reporting automation and data analytics innovation. Under this partnership, Pesante’s CDO and his team would be able to leverage analytics to provide tailored and unique solutions for Beeline clients.
Mar-2022: Magnit acquired Geometric Results, Inc., a leading independent, outsourced workforce management expert. Through this acquisition,Magnit would be able to improve the value of PRO’s IWM platform by combining GRI’s proven Managed Services Program (MSP) abilities with its robust portfolio of Talent Intelligence, SaaS, and Professional Services solutions.
Aug-2021: Magnit took over Workforce Logiq, a provider of VMS, MSP, RPO, and direct sourcing based in Orlando, Florida. Through this acquisition, Magnit would be able to extend its global reach as Workforce Logiq has a solid presence in the Middle East, Europe, and Africa.
May-2021: Beeline took over JoinedUp, a shift-based workforce solution based in the UK. Through this acquisition, Beeline would be able to benefit markets where shift-based work is the chief source of an organization’s non-employee labor.
Jan-2021: Magnit took over PeopleTicker, a leader in compensation data specializing in contingent labor rates and hiring intelligence globally. Through this acquisition, Magnit would be able to offer clients the most advanced and optimal intelligence and data solutions. Moreover, this step strengthens Magnit’s software, comprehensive data, and services platform along with innovations as well.
Jan-2021: Magnit, came into partnership with Eightfold AI, a talent intelligence pioneer and leader. Under this partnership, Magnit would be able to integrate Eightfold’s AI technology into its contingent workforce management platform, including SaaS solutions, such as Direct Sourcing, Wand Vendor Management System (VMS), and Diversity and Inclusion (D&I) offerings to optimize its customers’ contingent hiring procedures.
Jul-2019: Avature Limited came into partnership with Beeline, a global leader in software solutions for managing the contingent workforce. Under this partnership, Avature Limited would be able to deliver an even more strong solution for its mutual clients. Moreover, this step would allow businesses to discover the total talent vision required to reach breakout performance.
Feb-2019: Coupa Software, Inc., partnered with Launchship Technology Solutions, an expert in contingent workforce services based in Hyderabad, India. Under this partnership, Coupa Software, Inc. confirms Launchship Technology Solutions as its favored implementation partner for its Coupa Contingent Workforce which is a key area of focus for Coupa. Moreover, the Coupa Contingent Workforce authorizes businesses to handle all their spend.
Dec-2018: Ramco Systems Ltd. came into collaboration with KPMG Management & Risk Consulting Sdn Bhd, a multinational professional services network, and one of the Big Four accounting organizations. Under this collaboration, both organizations would be able to use Kuala Lumpur as a springboard to present state-of-the-art cloud-based payroll and human resources solutions for
growth companies across the region. Moreover, this step would provide the chance to obtain Ramco Systems’ platform strength and further scale its presence in the region.
Sep-2018: Coupa Software, Inc., acquired technology assets of DCR Workforce, a leading provider of contingent workforce management and services procurement software. Through this acquisition, Coupa Software, Inc. would be able to harden its aim of allowing businesses to handle all their organization’s business spend, including contingent workforce spend that too within a comprehensive BSM platform.
Scope of the Study
Market Segments covered in the Report:
• Flexible Staffing
• Permanent Staffing
• Retail Trade
• Manufacturing & Automotive
• Government & Public Sector
• Telecom & IT
• Business/Professional Service
• Pharma/biotech/medical equipment
• Real Estate & Rental Leasing
• Transportation & Logistics
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• SAP SE
• Coupa Software, Inc.
• Ramco Systems Limited
• Avature Limited
• Beeline (New Mount Capital)
• The Bowen Group
• CXC Global
• Zeel Solutions Ltd.
• Magnit (EQT AB)
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