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An Executive’s Guide to Direct Sourcing of Contract Work/Services (Part 2) — Technology

07/22/2020 By

Direct sourcing is a popular topic among contingent workforce practitioners today, and a significant number of organizations are either looking into it or starting to do it.

But there is a lot of confusion about the concept.

This three-part Spend Matters PRO series tries to put direct sourcing into perspective by offering executives a way to break it down in an observation-based, meaningful way.

In Part 1, we covered how the direct sourcing of contract workers and services has changed over the past 10 years, what it is today, what benefits it offers and what the emerging “direct sourcing ecosystem” consists of. We explained that the direct sourcing model, which has been taking shape in the last five years, is notable in a number of ways:

  • It is very much intertwined with digitally enabled self-service trends, new but maturing technologies (e.g., cloud, mobile, data analytics, AI, etc.), and the ongoing unfolding of enterprise digitalization.
  • It is a new and different sourcing channel, which can be looked at on three levels: program, process and technology.
  • It is part of an emerging digital ecosystem that includes:
    • “Buy-side” organizations
    • Established cloud, broadband and near ubiquitous wireless/mobile infrastructures
    • Millions of digitally connected contract workers and small service providers
    • Pure-plan providers of purpose-built enterprise technology solutions
    • Providers of IC-compliance/AOR and/or payroll/EOR services;
    • Multi-line contingent workforce BPOs (i.e., MSP/RPO),
    • Providers of digital work/services platforms (e.g., marketplaces, contest sites, etc.)
    • Contract worker sourcing specialists
    • Other supporting services providers (e.g., background checks, insurance, payments)

Part 2 of this series examines purpose-built enterprise technology solutions that are focused specifically on the direct sourcing of work from contract workers and/or services provided by small-scale service providers (SSPs). The focus is on what technology solution providers are in the market today, what these solutions do and how they differ in potentially important ways. We do this based, in part, on our SolutionMap demos and discussions with solution providers.

Part 3 will consider the implementation of direct sourcing programs and provide some guidance on what to expect.

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