It’s no secret that most large companies heavily supplement their full-time staff with contingent workers, including temporary workers, independent contractors, freelancers, and other outsourced labor. Doing so gives businesses greater flexibility, improves access to top talent, drives substantial cost savings, ensures legal compliance, and eases internal administration. And just as importantly, it aligns them with the ever-increasing trend toward modular, independent work.
It’s similarly no secret that managing a growing, disparate, and geographically widespread contingent labor force is a bigger challenge than most companies can handle on their own. That’s why many Global 2000 and similar companies have long relied on a host of providers and technologies, such as Managed Services Providers (MSPs) and Vendor Management Systems (VMSs), to develop formal, centralized talent acquisition and management programs.
But here’s what many don’t know: Middle-market companies use contingent labor at similar rates to large companies, yet they have historically been overlooked by management providers that focus exclusively on the bigger fish.
By our own competitive analysis, there are over 100 firms that offer MSP services globally. Because these providers generate revenue from every transaction they manage, it’s no surprise that most concentrate on programs with annual external labor spend north of $100 million. And, even those that do dip into the mid-market, often provide limited services or support compared to what they deliver to their Global 2000 customers.
But all of this is finally changing. Thanks to new technologies and more nimble, broad-minded providers, mid-market businesses now have options that can help them derive the same contingent labor benefits their bigger counterparts realize—including a minimum sustained cost savings of at least 10%.
Continue with the next post in our three-part series, Taking on the mid-market challenge.
To learn more about how middle market companies can benefit from actively managing contingent labor, download our white paper, Contingent Labor Management: New Players Bring Large-Company Value to Mid-Market Companies