The Emerging World of Digitally Intermediated Work: Old vs. New — or Something Else? (Part 2) [PRO]

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The digital transformation in contingent labor and outcomes-based services within procurement today is happening now. In contrast to indirect procurement and direct procurement, where traditional intermediaries and sourcing models have remained largely untouched by limited new disruptive entrants, the services procurement sector is in the early stages of transformation due to fundamental changes in labor-driven connectivity to demand.

Although adoption of these solutions has varied to date, incumbent staffing, consultancy and other labor intermediaries are indeed coopting and engaging these new models — an important indicator of their trajectory. Moreover, to deny this trend is to turn your back on dozens of solutions that connect specialized labor markets with end users in the business, not to mention the hundreds of millions in funding that these new, innovative intermediaries have received in recent years.

This two-part Spend Matters PRO research brief explores the evolution of digitally intermediated work. In the first installment, we explored digitization in the context of new staffing and labor models today, explaining how these new models can complement and work alongside traditional incumbent approaches. We also explored how organizations can incorporate labor-based digitization into familiar contingent and services procurement models and practices. In Part 2, we turn our attention to summarizing the key trends that procurement, HR and IT practitioners need to be aware of, and we provide key recommendations to put digital services transformation to work for you — rather than against you.

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