WorkMarket Acquires OnForce: Not Such a Big Deal, or More Significant Than It Appears?

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WorkMarket announced Wednesday that it has acquired OnForce from The Adecco Group for an undisclosed amount, forming a strategic partnership with Addeco as part of the deal, according to a press release.

The acquisition of OnForce will increase WorkMarket’s existing footprint in the field tech contractor work execution vertical. OnForce, founded in 2003, was a pioneer in that segment, which WorkMarket entered in 2010. WorkMarket subsequently has been investing in its state-of-the-art platform and has begun to serve a range of different verticals, including retail and media.

Since its inception, WorkMarket has raised $66 million in five rounds, most recently a Series D round in April 2017 led by Accenture and Foundry Group. WorkMarket considers Accenture a strategic partner, and some have noted that the acquisition also aligns with Accenture’s field services management practice.

Tactical and Strategic Significance of the Deal

OnForce and WorkMarket have served a small niche in an expansive field services technology solutions market with what came to be known as a freelancer management system (FMS). This type of digital platform solution enabled the dispatch and control of assignments and work performed by independent contractor field techs on behalf of OEMs, large integrators, VARS and the like.

Despite the size of the market segment, it has remained a significant, profitable business vertical, WorkMarket CEO Stephen DeWitt told us recently, alongside the other new verticals WorkMarket has begun to serve with its more comprehensive platform strategy. Moreover, there is only one remaining competitor in the segment (Field Nation), and markets outside of North America are still, for the most part, untouched.

“The acquisition of OnForce further expands our commitment to building the best work automation tools,” DeWitt said in the press release. “Solution providers and tech integrators can now fully automate their entire bench of labor — full-time techs, independent contractors and vendors — all from a single platform that integrates into leading IT service management platforms like ServiceNow™ and includes dynamic provisioning, real-time analytics, compliance tools and more.”

While the deal is a certainly a consolidation play in a niche segment where the OnForce technology platform is considered legacy, DeWitt told us that the replatforming of OnForce clients onto the WorkMarket platform will be paced by the customers themselves, recognizing that some customers have developed intricate integrations and processes around OnForce.

DeWitt also stressed that the acquisition of OnForce was not simply a market share grab; rather, it brings significant data assets to WorkMarket, as well as strengthens and develops key ecosystem partnerships (e.g., Accenture and Adecco).

More to Come

Accordingly, the acquisition has deeper significance than perhaps apparent, not only in terms of direct benefits to WorkMarket (as discussed above) but also as a part of the ongoing digitalization and transformation of the human capital supply chain and the evolution of work. That being the case, we will publish a follow-on PRO research brief that will analyze the acquisition in further depth and examine its significance in a broader industry context, considering the implications for contingent workforce and services procurement practitioners.

For more in-depth analysis of about WorkMarket, refer to our recent WorkMarket Vendor Snapshot series (Part 1, Part 2 and Part 3). And stay tuned for our in-depth analysis of the acquisition coming up soon.

First Voice

  1. Paul Walters:

    It’s a disaster for the IC. Work Market is a horrible platform not caring if services are paid for. Their claim that they are a “Software Company” rings hollow when an IC performs a job for a buyer on their platform and then gets stiffed. I speak from experience. I have not been on that platform in 4 years and will never and their assuming the only legit platform in this space spells trouble for the I.T. IC professional.

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