Self-Sourcing Contingent Workforce: What it is and Why it Matters Now [Plus+]

Many services procurement and contingent workforce managers in mid-to-large enterprises are already at various stages of implementing supplier and spend management programs to control and enable their businesses’ consumption of the contingent workforce. These programs typically allow business users to submit a request specifying the characteristics of the kind of worker(s) or business outcome(s) they desire. From that point, it is typically the program — and its rules, processes and systems, like a vendor management system (VMS) — that will source the specified worker(s) or project(s) from third-party supplier firms, which are almost always temp agencies or statement of work (SOW) suppliers, and hopefully deliver what the business user specified and desired.

In effect, it is the program, not the business user, that sources the worker(s) or project(s) for the business user. And the business user directly engages with the worker(s) or project resources at the end of the sourcing process, which can go on for weeks, often with many repeated cycles, until the business user is satisfied with the program’s deliverable.

By contrast, self-sourcing, which will be discussed in this Spend Matters Plus brief, allows the business users to identify, engage, select and procure labor resources (today typically independent workers) on their own, directly. Self-sourcing will increasingly become a contingent workforce buying channel, driven by user demand and enabling technology, and procurement and contingent workforce managers must now begin to understand it and prepare to management it.

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