The Next Generation of CWM Technology, Part IV: The Wild Cards

Welcome to the fourth article in a four-part series on the technology landscape within the Contingent Workforce Management industry, which looks at how the “next generation” of these solutions may look by taking into account current market perceptions and the ongoing evolution of the CWM space. Today’s article discusses the “wild cards” in the contingent workforce technology space. These are the solutions don’t fall into the three main buckets that were outlined in parts one, two and three of this article series.

For many industries, there are a slew of function-specific technologies that have helped executives drive visibility, automate key processes and enable helpful capabilities. The sales function relies on customer relationship management technology, while finance and operations look to ERP suites for company automation and information. Contingent workforce program managers have software and consultative options, all of which bring some level of value to their efforts.

At this media space, I’ve discussed the roles and benefits of Managed Service Providers (MSP), Vendor Management System (VMS) technology and Independent Contractor Engagement Specialists (ICES). But, what about the solutions that don’t fit “neatly” into those buckets? Are there other technologies and services that can drive value across the contingent workforce continuum?

Well, the answer is a resounding YES. With an evolving space comes evolving technology, right? The following platforms are actively proving their worth in the contingent workforce arena and beyond:

Services procurement offerings. An interesting thing happened over the past few years; the contingent workforce umbrella didn’t just shake up the industry and force organizations across the globe to reevaluate their existing strategies. With a newfound focus on complex contingent labor (SOW, services, etc.), the modern enterprise discovered that in order to effectively manage projects (both short- and long-term) that utilize SOW-based contractors and services, procurement strategies and principles were needed. Services procurement platforms, whether an offshoot of a VMS solution (often baked right into the core VMS functionality) or part of a larger sourcing / spend management suite, are much-needed today to manage budgets, spending, suppliers, expenses, etc. Ariba, an SAP company, recently announced their plans to revamp their services procurement offering (read more about the Ariba/SAP offering here), blending the best of their spend management capabilities with a talent- and project-management-infused module that is capable of not only handling the procurement and supplier management aspects of complex contingent labor, but also support requisition development, talent reviews, and collaboration between stakeholders in regards to SOW project management. With SOW a primary focus of the contemporary CWM program, expect services procurement offerings to make a bigger play in this industry.
Integrated workforce platforms. I spoke of the interesting blend of VMS / MSP hybrid solutions in a recent article, and while hybrid platforms leverage the “best” of the two major technology types(which also add payrolling and contractor compliance to the mix) , integrated workforce solutions add in various services and capabilities for organizations that have truly complex contingent workforces. Most of these offerings benefit from capabilities similar to its human capital brethren (standard workforce management solutions that are leveraged to manage traditional, full-time talent) for a platform that can address various areas of contingent labor, including staffing supplier management, talent management, and risk mitigation and compliance. Populus Group, a solution provider with headquarters in Troy, Michigan, is founded on the notional of “flexible workforce” capabilities by offering a wide range and mix of services to address many of the more complex areas of contingent labor, particularly ICs. In fact, Populus is one of the few integrated workforce management solutions to have a full independent contractor engagement specialist (ICES) foundation built into its core offering. Populus is also actively making waves in an area that’s often understated in this industry: meeting diversity spend goals. As the industry evolves and shifts even more over time, integrated workforce solutions will be an attractive option for enterprises…especially if their CWM programs are multi-faceted and require expertise in managing services, SOWs and ICs all under the same platform.
Online labor marketplaces. The funny thing about online labor marketplaces is that they’ve been around for quite some time; it’s only been recently that organizations are starting to realize how they play into the CWM world. Online labor marketplaces (such as Elance, which hosts 2.8 million freelancers and contractors on their site) provide a non-staffing gateway to a laundry list of specialists and contractors in a variety of industries and spaces. Why is this penetrating the contingent workforce world? There’s a growing concept called “enterprise-workforce-as-a-service,” or eWaaS, which simply involves “dialing up” talent when needed. The problem is that this outreach is often outside of the CWM program and its associated solutions (i.e. sourced directly by individuals or units without first looking to an MSP or VMS). This will present an evolving issue for organizations, as compliance and cost factors will only burn brighter as time passes. Elance recently announced their new cloud-computing platform, which will allow enterprises to tap into a virtual private network of talent and pay for that talent through a single, centralized gateway.

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