The Good the Bad and the Procurement Genie: The Magic Coming to the Contingent Workforce Space

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The bad news: The act of procuring a contingent workforce is about to get a whole lot more complicated.

The good news: The changes coming to the contingent workforce space will be revolutionary. The changes will also be disruptive at times, too, but many procurement organizations are already ramping up their contingent workforce programs, and, as Andrew Karpie wrote in a Spend Matters Plus article earlier today, have already started to rub the magical procurement genie bottle.

Free Research: Reinvigorate your services procurement and contingent workforce program

The article states:

“Despite some progress in evolving programs away from just the management of staffing resources and statement of work (SOW) models, the non-employee genie is working his magic and making his way out of the bottle. We can call this little wizard “Uber” if you will – a nice name for this genie in more ways than one (we will explain in a minute). And most procurement and human resource organizations have not even started to think through many of the consequences “Uber” brings, let alone put new programs and sanctioned technologies fully in place to address these shifts.”

Procurement organizations must take note of these fast-moving advances in the contingent workforce arena. And, as Andrew discusses in the Plus research brief, this genie coming out of the bottle is working some serious magic. “Nothing short of phenomenal,” Andrew wrote.

Andrew also said:

“I think it’s extremely important to begin to realize that we have reached this stage, where we are not just talking about isolated changes and innovations, but where these developments are having network effects, and their diffusion is occurring in different directions and across different dimensions.”

What else is disrupting the world of work? There are so many developments we here at Spend Matters are discussing every week, and hundreds more occurring that we don’t even know about yet. These changes are also significantly impacting contingent workforces and many authoritative observers are taking note, calling out the benefits of these advances. Take for example, the recent McKinsey study, “A Labor Market that Works: Connecting Talent with Opportunity,” which states how online work intermediation platforms will start having huge impacts on how the workforce is structured and arranged between business and workers.

Andrew discusses more examples of the advances in the contingent workforce world. Make sure to check out his Plus article, “Revolutionary and Disruptive Changes Coming to Contingent Workforce Spaceto learn exactly how these changes will impact the workforces for procurement now and in the future.

First Voice

  1. Adam Donahue:

    Kaitlyn,
    You mentioned two very important departments that have historically never wanted to deal with contingent labor: HR & Procurement. HR wants to manage employees and procurement doesn’t want to manage people. So where does this leave the non-employee? As an IAM implementation company, most of our customers tell us it the IT department that gets saddled with this responsibility. Contingent workers need the same access to business systems with a fraction of the oversight. This leaves business exposed to unnecessary risk (ie. the Target breach). SecZetta’s solution was to design a system to enable the business to manage their respective non-employees and to centralize all of the non-employee data in a single location. The business can then utilize this as an authoritative source (like an HR system) for downstream provisioning to any needed applications.

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