SAP, Fieldglass, and the Future of the VMS: Why MSPs and Staffing Firms Should Wake Up to a New Threat [PRO]

It’s business at usual at Fieldglass. With their customer event this month and, as far as we’re aware, no big decisions having been made regarding combined product rationalization and roadmaps with SAP and Ariba, it’s clearly a post-merger honeymoon period. And they deserve it – Fieldglass has done a commendable job working and building trust with both customers and the incumbent managed services provider (MSP) ecosystem (Tapfin, Allegis, KellyOCG, Agile-1, Randstad, Bartech et al) over the years while also driving more competitive pricing in the contingent workforce marketplace. But at some point, change will come as SAP evaluates such areas as product integration, sales structure, partnerships/business development, marketing, pricing and the like.

All of this is to be expected. But those in for the biggest shock likely won’t be competitors (we think the acquisition will raise the profile of the humble VMS and services procurement generally – which is a good thing). No, those in for a shock will be staffing firms and their MSP arms as well as independent MSPs – which potentially have far more to lose than gain as technology automation and integration with broader procurement accelerates. In this Spend Matters PRO research brief, Managing Director Jason Busch takes a look at how and why the SAP acquisition of Fieldglass will eventually shake the services procurement and staffing ecosystem to the core – and the winners and losers likely to emerge.

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