In just five years, freelancers and independent workers will make up over 40% of the workforce in the US alone.
According to a recent study by Intuit, along with an increase in the number of small businesses, the next decade will see more and more networks of collaborative contingent workers, minimizing fixed labor costs and expanding the available talent pool. The study shows that over 80% of large corporations plan to increase their use of a flexible workforce in the coming decade.
So how will companies manage this massive shift away from traditional employment models?
Fieldglass leads the way
The globalization of the workforce, a talent shortage in certain industries and highly skilled, mobile workers in others such as oil and gas, and project-based work packages are just some of the drivers behind this trend. An award-winning pioneer in the vendor management software (VMS) space, Fieldglass has a tradition of partnering with customers to develop solutions that efficiently manage recruitment and payment processes and ensure compliance to tax laws and legal requirements.
“The business value of Fieldglass,” says Anna Burke, Head of Marketing and Communications for the Chicago-based SAP company, “is that we manage the entire end-to-end cycle and provide easy-to-use mobile apps so that even infrequent users have an enjoyable experience.”
Customers are pleased
Cisco, a worldwide leader in IT that designs, manufactures and sells networking equipment, has over 75,000 workers worldwide and spends $65 million on their contingent workforce. To manage their workforce more efficiently, they needed a global end to end contracting process and better visibility into their data to make better business decisions. And finally, they needed to find the right people with the right skills to ensure compliance to regulations and minimize legal and financial risks.
Fieldglass met all their needs and saved them over $33 million in service costs to date. Hundreds of other customers with similar needs have turned to Fieldglass for similar results.
Drinking our own champagne
Like Cisco and many other tech companies SAP is also confronted by the evolving landscape of contingent workforce management. Krista Quicke, who heads up the Fieldglass project at SAP, says a strong collaboration between HR, procurement, and IT is necessary for successful implementation. It’s well worth the effortl Besides cutting costs and increasing efficiency, Fieldglass is the single tool for vendor management across networks and for leveraging metrics and predictive analytics.
“We see an inherent synergy with Ariba for managing and collaborating with customers and partners who are using both systems,” says Quicke.
With powerful tools and networks like these, SAP and our customers will be well equipped for the change.