In 2016, Paris-based consultancy firm Capgemini was looking for ways to better manage its global network of employees using existing technology. At the time, the company had limited visibility into its contingent workforce, and its procurement team wanted a tool that would help consolidate insights and track metrics such as headcount, performance, capabilities, compliance, and more. Additionally, with legislative requirements changing rapidly in different regions, the company needed technology that could quickly adapt.
This challenge reflects broader trends in the SAP-sponsored Economist Impact report titled “Flexible Futures: Navigating the Evolving External Workforce,” which dives into how companies like Capgemini are leveraging external workers to meet skill deficits and productivity demands. The report highlights how organizations are turning to innovative technologies and strategies to seamlessly integrate external talent, ensuring they stay competitive in a rapidly changing workforce landscape.
In Capgemini’s case, it used SAP Fieldglass solutions to help manage its contingent workforce program across more than 30 countries. The cloud-based solutions can integrate with other SAP solutions and leverage artificial intelligence (AI) to help optimize external workforce management, helping companies stay resilient in an evolving talent landscape. With the addition of SAP Fieldglass solutions, Capgemini has managed contractors and temporary workers across its entire supply chain. The company has successfully leveraged data from over 50 countries, seeing a 26% increase in unitary cost savings with a 50% increase in productivity from the internal procurement services team.
“The increased visibility into all external workforce-related outcome and process steps has enabled sharpened insights, along with smaller fulfillment time frames, higher fill rates, and improved compliance,” says Andreas Hettwer, group procurement category director at Capgemini. “We have truly optimized functions around the external workforce.”
Smart and efficient talent acquisition
In today’s dynamic business environment, the external workforce—comprising freelancers, contractors, consultants, and gig workers—has become a critical component of many organizations. However, efficiently hiring and managing this diverse talent pool while staying adaptable to future workforce needs can be daunting.
This is because talent acquisition for an external workforce requires finding the right people at the right time, often under tight deadlines. The Economist Impact report also shared that internal skills and talent gaps have increased the demand for proper recruitment of the external workforce.
Capgemini serves as a prime example of how this approach works in practice. When it experiences a surge in demand, its preferred suppliers are notified and SAP Fieldglass solutions pull recommendations from distribution lists of candidates who have the necessary skill sets. This helps accelerate the hiring process and can ensure Capgemini is choosing from the best possible pool of potential candidates. The data is developed in SAP Fieldglass solutions and extracted into Capgemini’s various dashboards, instantly providing a comprehensive snapshot of each supplier’s performance.
Robust data maximizes ROI
Managing an external workforce is a delicate balancing act that involves countless variables. Beyond sourcing talent, it requires tracking budgets, ensuring compliance, and measuring performance. AI-powered automation can help streamline these processes, making it easy to capture, compare, and collaborate on critical information about non-payroll labor. This empowers companies to make informed decisions that maximize their return on investment (ROI).
When inflation surged in 2023, Capgemini fielded a large volume of rate increase requests. Through constructive and fact-based discussions with its supply base, the company managed a cost-rate evolution and shared inflation impact KPIs with its board. This increased executive trust in the global contingent workforce’s ability to deliver productivity. At the end of the implementation, Capgemini fulfilled 80% of its eligible contingent worker demand.
“We have full visibility,” Hettwer says. “We know the number of contractors, we know our demand per geography, per business line, and we know the cost rates we pay for certain roles, and we measure how the cost rates evolve over time.”
Capgemini is also exploring new ways to use the large amount of data coming from the global deployment of SAP Fieldglass solutions, including AI. Economist Impact data reinforces Capgemini’s perspective, as executives cited integrating traditional systems with AI and machine learning as a top priority over the next three to five years.
“AI will certainly be an important factor in our business,” Hettwer says. “We’re being patient and methodical in order to make sure that we introduce it safely and effectively.”
Driving workforce excellence through innovation and insights
Capgemini’s journey with the SAP Fieldglass portfolio demonstrates the transformative power of leveraging advanced technology to manage and optimize an external workforce. By enhancing visibility, streamlining processes, and utilizing AI-powered insights, Capgemini has achieved significant improvements in talent acquisition, supplier performance, and cost efficiency. This resulted in the firm capturing 98% of its global contingent workforce spend with a 60% quicker fulfillment time compared to the start of the program.
As the workforce landscape continues to evolve, SAP Fieldglass solutions can equip organizations with tools that enable them to manage the complete lifecycle of their external employees, from requisition and engagement to offboarding and evaluation. These capabilities are vital to remaining resilient, agile, and data-driven while transforming external labor into a versatile, value-driving resource.
Capgemini’s strategic focus on innovation and compliance sets a benchmark for businesses aiming to unlock the full potential of their contingent workforce in today’s competitive global environment.
Amber Roth is vice president of Global Presales & Strategy for SAP Fieldglass.
