Services and Indirect Spend Content

Afternoon Coffee: AP automation provider Tipalti adds 3 partners; Globality survey is out; Boeing gets orders for grounded 737 MAX

Tipalti, a global payables automation platform, today announced three partnerships to modernize those firms' finance operations. Also, there's news from Globality as well as Boeing. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Workforce platform Fulcrum closes seed round; Wipro’s Topcoder launches tech talent sourcing offering; Amazon in India

Fulcrum, a platform for bringing together large enterprises and on-demand talent, told Spend Matters that it had raised a $1 million seed round led by Greatscale Ventures. And Topcoder, a Wipro company that’s described as the “world’s largest technology network and on-demand digital talent platform,” announced the launch of a new offering, “Talent-as-a-Service” (TaaS). Also, Jeff Bezos talks about Amazon in India. Afternoon Coffee brings you the latest news in procurement and supply chain technology.

Shiftgig: What Makes It Great (Direct Sourcing of Workforce/Services SolutionMap Analysis)

Shiftgig, which was founded in 2012 as an on-demand work marketplace, pivoted to become a pure-play technology provider. The company divested the staffing portion of its business and, in early 2019, launched its flagship software solution, Deploy: a deployment and engagement platform for staffing firms.

Shiftgig was able to pivot so quickly, in less than one year, to a software-as-a-solution business for staffing firms, because much of the original underlying technology functionalities/capabilities were built to power Shiftgig’s original business model, a technology enabled on-demand work marketplace. So while Deploy was brought to market this year, underlying it is an advanced, highly scalable, fit-for-purpose technology solution that has been developed and enhanced/updated over the previous seven years.

Staffing firms can use the Deploy SaaS under subscription pricing to establish their own new “on-demand, mobile-gig-workforce” staffing channels; that is to say, alternative, digitally transformed versions of their traditional ones. At this time, Shiftgig mainly targets staffing firms serving the hospitality, light industrial and experiential marketing staffing segments (but it can also be used by other businesses like per-diem nursing, catering or event management companies).

Within this new digital staffing model (enabled by Deploy), staffing firms continue to be the sourcer, curator, employer of record and payroller of the temporary workers utilized by client businesses. But Deploy enables a staffing firm’s own on-demand, mobile/digitally-connected temp workforce and 24/7 self-sourcing capability for clients. Operationally, Deploy reduces time-to-fill, and it improves the quality of deployed workers based on data and analytics. Shiftgig Deploy allows staffing firms to “up their game” and create a win-win scenario that also includes clients and workers.

Spend Matters breaks down the broadening and evolving enterprise technology solution market for contingent workforce and services (CW/S) into three main categories in SolutionMap, our free vendor ranking system. Those are solutions to manage:

* Temp Staffing, the primary historical focus and largest category of spend under management for established VMS providers (e.g., Beeline, Coupa-DCR Contingent Workforce, SAP Fieldglass, etc.)
* Contract Services/SOW (Statement of Work), the spend category now contributing the highest growth to VMS providers’ spend under management.
* Direct Sourcing of Workforce/Services (DSW/S), while the largest volume of spend under management and numbers of users lie in the Temp Staffing solution category, top VMS providers have been evolving and increasingly providing capabilities to enable clients to directly source and engage contingent workers and manage the corresponding spend and risk.

So where does Shiftgig Deploy fit into the burgeoning CW/S solution market?

Shiftgig participated and was scored in the Direct Sourcing of Workforce/Services Q3 2019 SolutionMap research cycle. Given its unique purpose and target market, Shiftgig Deploy differs from many of the other solutions (targeted to enterprises, not staffing firms) in Spend Matters in the Direct Sourcing of Workforce/Services SolutionMap. These may offer capabilities that Deploy does not — and vice versa. For example, some of the FMS-like platforms may provide complete invoicing and payment capabilities for independent contract workers, while Deploy provides an open API that transfers timesheet data to a staffing firms payrolling system. Accordingly, because Spend Matters’ scoring RFI had not anticipated a solution like Deploy, the SolutionMap Solution Scores may not provide an adequate score for this very strong, highly specialized solution.

As of Q3 2019, SolutionMap contains functional and customer satisfaction benchmarks on more than 50 providers within the overall procurement technology landscape, including 14 providers within the CW/S segment. But, taking into account the qualifications above, where does Shiftgig Deploy stand out most and help “set the bar” for the Direct Sourcing of Workforce/Services segment? And why should this matter for procurement and HR organizations? Let’s delve into the SolutionMap benchmark to find out where Shiftgig is great.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.

Afternoon Coffee: Amazon challenging Pentagon’s $10B cloud award to Microsoft; 64% of California full-time contractors now employees

Amazon has revealed it was contesting the decision by the Pentagon to give to Microsoft the $10 billion cloud computing deal. A new California law — covered extensively by Spend Matters here — “turned thousands of independent contractors into employees, including truckers, janitors, and gig workers, according to a University of California Berkeley analysis,” Bloomberg Law reports. And global automakers await a decision from President Donald Trump on whether he will impose up to 25 percent tariffs on U.S. car and auto part imports after a 180-day review period expired earlier this week. Afternoon Coffee: Happy Friday!

Classification Complications: How Companies Can Use Technology to Navigate Stricter California Freelancer Law

sharing economy

There were already abundant federal and state laws surrounding freelance worker classification before California approved the adoption of the country’s most stringent test. In the recently passed Assembly Bill 5 (AB-5 or the “Uber bill,” as it’s commonly called), the state tightened the rules to close what they saw as loopholes hurting workers and the state.

Growing from the 2018 California Supreme Court decision Dynamex Operations West v. Superior Court of Los Angeles County, AB-5 establishes a new three-part test — dubbed the ABC test — that employers must satisfy to classify workers as freelancers or independent contractors. If even one part of the ABC test isn’t met, the worker is considered by the state to be an employee of the company engaging them.

So what are companies supposed to do? Set a policy and add the right technology to manage freelancers.

With the number of freelancers on the rise, companies need to take action to be sure they have visibility into and control of their independent workforce.

While companies continue to use VMS technology for certain worker management functions, there is now technology specifically geared to freelancer management. By adopting a cloud-based freelancer management system (FMS), companies can take a major step in reducing risk and meeting compliance requirements while managing their total freelancer population from a single platform.

Q&A: Keith Hausmann on joining Globality: ‘This is what I’d been looking for’

Globality, an artificial intelligence-powered platform that facilitates the efficient and effective buying and selling of enterprise services, hired a new chief revenue officer this fall, and we caught up with Keith Hausmann about his role as the new leader of business development and sales for the rapidly growing company.

Hausmann started as the CRO in September after years at Accenture, where he led supply chain and procurement business process optimization and built a technology ecosystem network.

In his new role at Globality, his focus is on leveraging AI to help clients with the sourcing of high-value B2B services, including marketing, consulting, technology, legal and more, to create a new ecosystem for global trade.

"This is what I'd been looking for,” Hausmann said of Globality’s mission.

Afternoon Coffee: Upwork’s Q3 financials show progress; Toptal launches; Soybeans under fire; China agrees to cancel tariffs in phases

China's Commerce Ministry has said China and the U.S. have consented to scrap the tariffs imposed in the on-going trade war, but in phases. Upwork Inc., the largest online talent solution based on GSV (gross services volume), reported its Q3 2019 financial information Tuesday with positive results across the board. Talent network Toptal announced the launch of to foster conversations pertaining to the future of procurement and staffing at large enterprises, among many other things. And U.S. soybean cargo was caught in a duty crossfire in — where else? — China. Afternoon Coffee: your source for procurement and supply chain news.

Afternoon Coffee: ISM services index is up; Workday-Scout RFP competitive analysis; What Brexit could mean for U.K-U.S. trade

The Institute for Supply Management (ISM) recently released their non-manufacturing index — the NMI — which told a positive story for the services sector. Jason Busch, managing director of Spend Matters Nexus, follows up yesterday’s coverage blitz on the deal with this latest Nexus brief, diving into landscape implications of the transaction that may affect other, specialized procurement technology providers — in this case, suite and best-of-breed competitor analysis and recommendations. And here are 5 things you should know before shipping across the U.S.-Mexico border. Afternoon Coffee: your source for procurement and supply chain news.

The Contingent Workforce and Services (CW/S) Insider’s Hot List: November 2019 [Plus+]

Welcome to the November 2019 edition of Spend Matters Insider’s Hot List, a monthly look at the contingent workforce and services (CW/S) space that’s available to our PLUS and PRO subscribers. For those new to the Hot List, each edition covers the prior month’s important or interesting technology and innovation developments in the CW/S space.

Afternoon Coffee: Doubts over cocoa imports; Uber, Lyft drivers propose California ballot measure; Golden age of supply chain uncertainty

Global companies must focus on the economics of supply chains amid uncertainties such as the U.S.-China trade dispute and Brexit, said the CEO of Barclays at a recent forum. U.S. Customs and Border Protection officials paid a visit to Ivory Coast recently to probe whether cocoa production there used forced or child labor, to decide whether the U.S. should block cocoa imports. And drivers for several gig-economy-platform businesses have announced “a statewide ballot measure for the November 2020 ballot,” according to TechCrunch, aiming to ensure drivers and couriers can continue to be independent contractors with flexible work hours. Afternoon Coffee: your source for procurement and supply chain news.

Afternoon Coffee: U.S. GDP up in Q3; Premier snags cost management platform Medpricer; Tradeshift, Genpact partner up

The U.S. economy grew at 1.9% in the third quarter, a bit more slowly than in the previous quarter, but tempered by good consumer spending and a strong housing sector. Global professional services company Genpact has strategically partnered with payments firm Tradeshift to enable enterprises to transform accounts payable and procurement processes. And Premier Inc., a leading healthcare improvement company, announced that it has acquired cost management platform Medpricer. Afternoon Coffee: your source for procurement and supply chain news.

Workforce Logiq acquires ENGAGE Talent and gets even smarter

Workforce Logiq, a global provider of workforce management software and services to large corporations, announced it has acquired the predictive analytics and AI software company ENGAGE Talent.

ENGAGE, based in Charleston, South Carolina, provides major businesses with various analytic services that improve talent acquisition and engagement performance. Both Workforce Logiq (which is owned by The Carlyle Group) and ENGAGE Talent (founded in 2014) are privately held companies, and the terms of the deal were not disclosed.

The acquisition marks further momentum of Workforce Logiq’s strategic transformation ...