The VMSA Live conference will be kicking off in Phoenix, Arizona, on April 4 — and I am definitely here beating the drum as a big supporter. This will be my third year attending, and this time I will be a lead contributor in two sessions. Over those three years, I’ve seen number of attendees grow rapidly to an expected 400 this year, and I have seen the unique character of the event shape and solidify. In fact, I’d hesitate to call the event a conference — it’s more like a tribal gathering with many powwows where contingent workforce managers, technology and service providers and workforce suppliers can exchange practical knowledge and experience and learn from one another.
The Services and Indirect Spend Category
Many organizations are beginning to adopt new contingent workforce/services (CW/S) procurement solutions. Why now? In short, it’s because new underlying technologies are available to enable new solution approaches and organizations are compelled to make use of these technologies to address changes in talent supply, whether it’s skill shortages, generational shifts or changes in attitudes and behaviors.
Google recently announced its acquisition of San Francisco-based Kaggle. Founded in 2010, Kaggle describes itself a platform for predictive modeling and analytics competitions and consulting. Organizations and individuals may submit projects as contests and set a monetary prize for solutions. Individuals or teams within Kaggle’s crowd of 600,000 data analytics experts propose solutions, and the originators of the projects select a winner and award the prize money. Kaggle also offers a talent solution that allows organizations to find and evaluate potential hires based on their actual projects and code. Small to large companies across a range of industries have used Kaggle — including State Farm, Facebook and Google, which used Kaggle extensively before the acquisition
In Part 1 of this series, we described and unpacked the topic of digital platform-based service providers, which represent a modest but growing spend category far outside of the scope of contingent workforce and services (CW/S) procurement programs. While they are not on procurement’s radar, Spend Matters believes these providers will increasingly become a significant part of organizations’ services consumption and spend over the next 10 years.
In Part 2, we review what is arguably the most successful sub-segment of these digital service providers, as well as revisit the question of whether they require your attention and why.
Why Are Clients Moving Away From MSPs to Internally Managed Programs (IMPs) to Optimize Contingent Labor?
Spend Matters welcomes this guest post from Terri Gallagher, president and CEO of Gallagher and Consultants, and Brandon Moreno, president of EverHive.
Times are changing and clients are becoming more sophisticated and educated regarding options to manage and optimize their contingent workforce. The managed services provider (MSP) model, which started 20 years ago as the “go-to” for contingent workforce management, is losing relevancy and the voice of the customer is confirming they want changes. Today, clients want a strategic business partner, true vendor neutrality, effective benchmarking and reporting, best practices and expanded supply chain options with digital platforms. They want to go beyond the current MSP “command and control” of cost control, process and visibility.
Gig workers are overall pretty happy with their form of work, according to new research. Intuit and Emergent Research recently released findings from their two-year study of 6,247 on-demand workers, which looked at their reasons for pursuing gig work and their level of satisfaction. I interviewed Steve King, a partner at Emergent Research, to get more insight into the research findings.
In 2015, in partnership with Emergent Research, Intuit began conducting research into the on-demand or gig economy in the United States. “Our original research goal was to provide concrete data on who was working in the on-demand economy and their motivations, attitudes and demographics,” said Steve King, a partner at Emergent Research. The results of the two-year study are available in a presentation titled Dispatches from the New Economy: The On-Demand Workforce. A more formal report with additional data that dive deeper into key findings will be released in March. In the meantime, we thought it relevant to cover these key findings.
An increasing number of digital, platform-based service providers are appearing today, and while they now represent a small category far outside the scope of most contingent workforce and services (CW/S) procurement programs, the spend they account for is growing.
Back around 2010, traditional BPO providers sought to introduce clients to digitally turbo-charged offerings. Though similar in concept, the providers appearing today represent a whole new generation of platform-based service providers, many of which were startups or didn’t exist in 2010. They did not arise with the scale and legacy of the BPO providers, nor did they occupy the category of major service providers of which procurement was aware and already oversaw.
Far from a passing fad, these next-generation digital service providers will become an increasingly significant segment of services consumption and spend over the next 10 years. We base our projections on solid, long-term trends evidenced in both the consumer and business sectors.
This Spend Matters PRO research brief defines this new generation of digital service providers and poses the entirely open question of whether they require the attention of procurement organizations tasked with managing services spend at this time.
On Wednesday, Spend Matters Founder Jason Busch and Research Director of Services and Labor Procurement Andrew Karpie co-presented on a webinar, Contingent Workforce and Services (CW/S) Procurement: 2017 Tech Trends and Their Impact on You. In case you missed it (though you can still watch a recording of the webinar on demand), here are some of the biggest takeaways from Wednesday’s webinar.
IQNavigator + Beeline’s Doug Leeby Answers Burning Questions on Product Roadmap, SAP Fieldglass and More
In Part 1 of this Q&A, IQNavigator + Beeline CEO Doug Leeby discussed customer and partner reactions to the recent merger and how he views the future of the VMS market. Today in Part 2, we ask Leeby about specifics of the combined product roadmap and what differentiates the firm he leads from SAP Fieldglass.
IQNavigator + Beeline Update: Doug Leeby Discusses Merger Reactions, Vision for Combined Organization
In December 2016, the announced merger of IQNavigator and Beeline rocked the contingent workforce and services market. As the shape of the new firm takes form, Spend Matters caught up with Doug Leeby, CEO of IQNavigator + Beeline, to learn how customers have reacted, how partners are dealing the emergence of a “Big 2” and what he sees as the future of the VMS market. Stay tuned for Part 2 of this interview, in which Leeby provides an update on the combined product roadmap and competitive landscape.
The CW/S world is rapidly changing as new and truly disruptive technologies emerge and as the employer-employee relationship evolves. How will this affect the average procurement practitioner? That is the topic to be covered on a webinar tomorrow (Wednesday, Feb. 22, at 12:30 p.m. CST), titled Contingent Workforce and Services (CW/S) Procurement: 2017 Tech Trends and Their Impact on You. We encourage our readers to tune in as Karpie and Spend Matters Founder Jason Busch break down CW/S technology trends and where they’re taking root.