The global contingent workforce management market is anticipated to reach $465.2 trillion by 2031, growing from $171.5 trillion in 2021 at a CAGR of 10.5% from 2022 to 2031.
The process of managing the contingent workforce in a company is called contingent workforce management. It often includes procedures for worker assignment, supply of tools and system access, creating and implementing rules and regulations, and enrolling contingent employees in any compliance or development courses that their position might demand. Companies that need to quickly ramp up or down their labor base due to economic conditions or the yearly pattern of the workforce may find that using an external workforce. Regular employees benefit from this as well because they are not required to be paid off when business demands change because the flexible nature of the contingent workforce protects them from such changes. Furthermore, finding and recruiting people takes time, and there are times when you need to find critical talent right away. Employers can quickly fill open positions by using contingent labor. These factors are expected to boost the growth of the contingent workforce management industry in the coming years.
Contingent workers include independent contractors, freelancers, gig workers, and agency employees. Businesses hire them to fill a temporary skill shortage, such as during a permanent employee's maternity leave. When a company hires contingent workers, the main benefit is cost savings. In terms of pay and benefits, contingent employees are frequently less expensive (most contingent workers receive no benefits). Furthermore, because many contingent workers have prior training, the company does not have to spend money on additional training. Furthermore, having a large labor surplus incurs fewer expenses because the corporation simply hires these individuals as needed.
Many contingent workers don't receive the same orientation, onboarding, and training as permanent employees, which means they can need more supervision when they initially start. Some managers are hesitant to delegate work to independent contractors and may supervise it closely until they are certain they can finish it. This could divert time and resources from more important goals. In turn, this can prevent the market from expanding as expected.
The workforce in the information technology and telecommunications industries is increasingly made up of contingent labor. Organizations in these industries are increasingly using contingent workers for projects or short-term assignments with tenures ranging from a few months to two years. Before making a permanent hire, management is using this fixed-term time to evaluate talents and determine whether contingent workers meet the company's needs. Tech organizations frequently need to employ a wide variety of expertise in many operational fields. Tech firms can engage people with the necessary skills and talent without incurring a long-term financial commitment by using a contingent workforce.
The novel coronavirus outbreak had a significant impact on how people work, with an increase in remote working for many employees, but a trend that has significantly accelerated is the increase in demand for contingent workforce and, ultimately, contingent workforce solutions. Because of the pandemic and global lockdowns, organizations became more flexible, which led to a better understanding of the value of outsourced workforces. As a result of the growing need to cut costs, spending on solutions for managing contingent workforces has skyrocketed. Workforce management was an effective method of mitigating the pandemic's disruption. In order to adapt to the new market conditions, businesses had to change the way their employees collaborated. Companies now need to develop a talent strategy that is future-proof. As a result of the pandemic, businesses are currently focusing on workforce flexibility, effective project management, and giving employees additional remote work options. Some of these improvements are projected to become permanent in the future years.
The key players profiled in this report include are Avature, Beeline, BOWEN Group, Impartx, Coupa Software Inc, SAP SE, CXC Global, Magnit, Ramco Systems, and Zeel Solutions Ltd.
The process of managing the contingent workforce in a company is called contingent workforce management. It often includes procedures for worker assignment, supply of tools and system access, creating and implementing rules and regulations, and enrolling contingent employees in any compliance or development courses that their position might demand. Companies that need to quickly ramp up or down their labor base due to economic conditions or the yearly pattern of the workforce may find that using an external workforce. Regular employees benefit from this as well because they are not required to be paid off when business demands change because the flexible nature of the contingent workforce protects them from such changes. Furthermore, finding and recruiting people takes time, and there are times when you need to find critical talent right away. Employers can quickly fill open positions by using contingent labor. These factors are expected to boost the growth of the contingent workforce management industry in the coming years.
Contingent workers include independent contractors, freelancers, gig workers, and agency employees. Businesses hire them to fill a temporary skill shortage, such as during a permanent employee's maternity leave. When a company hires contingent workers, the main benefit is cost savings. In terms of pay and benefits, contingent employees are frequently less expensive (most contingent workers receive no benefits). Furthermore, because many contingent workers have prior training, the company does not have to spend money on additional training. Furthermore, having a large labor surplus incurs fewer expenses because the corporation simply hires these individuals as needed.
Many contingent workers don't receive the same orientation, onboarding, and training as permanent employees, which means they can need more supervision when they initially start. Some managers are hesitant to delegate work to independent contractors and may supervise it closely until they are certain they can finish it. This could divert time and resources from more important goals. In turn, this can prevent the market from expanding as expected.
The workforce in the information technology and telecommunications industries is increasingly made up of contingent labor. Organizations in these industries are increasingly using contingent workers for projects or short-term assignments with tenures ranging from a few months to two years. Before making a permanent hire, management is using this fixed-term time to evaluate talents and determine whether contingent workers meet the company's needs. Tech organizations frequently need to employ a wide variety of expertise in many operational fields. Tech firms can engage people with the necessary skills and talent without incurring a long-term financial commitment by using a contingent workforce.
The novel coronavirus outbreak had a significant impact on how people work, with an increase in remote working for many employees, but a trend that has significantly accelerated is the increase in demand for contingent workforce and, ultimately, contingent workforce solutions. Because of the pandemic and global lockdowns, organizations became more flexible, which led to a better understanding of the value of outsourced workforces. As a result of the growing need to cut costs, spending on solutions for managing contingent workforces has skyrocketed. Workforce management was an effective method of mitigating the pandemic's disruption. In order to adapt to the new market conditions, businesses had to change the way their employees collaborated. Companies now need to develop a talent strategy that is future-proof. As a result of the pandemic, businesses are currently focusing on workforce flexibility, effective project management, and giving employees additional remote work options. Some of these improvements are projected to become permanent in the future years.
The key players profiled in this report include are Avature, Beeline, BOWEN Group, Impartx, Coupa Software Inc, SAP SE, CXC Global, Magnit, Ramco Systems, and Zeel Solutions Ltd.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the contingent workforce management market analysis from 2021 to 2031 to identify the prevailing contingent workforce management market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the contingent workforce management market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global contingent workforce management market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
- Permanent Staffing
- Flexible Staffing
By End-user Industry
- IT and Telecom
- BFSI
- Healthcare
- Manufacturing- Automotive
- Business/Professional Service
- Retail trade
- Pharma/biotech/medical equip
- Manufacturing- Consumer Products
- Government (Excluding Education)
- Transportation/warehousing/packaging
- Manufacturing-Others
- Real Estate and rental leasing
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- UAE
- South Africa
- Rest of LAMEA
Key Market Players
- avature
- Beeline
- the bowen group
- Coupa Software Inc.
- cxc global
- Zeel Solutions Ltd.
- Ramco Systems Ltd
- SAP SE
- IMPARTX
- PRO Unlimited Inc.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONTINGENT WORKFORCE MANAGEMENT MARKET, BY TYPE
CHAPTER 5: CONTINGENT WORKFORCE MANAGEMENT MARKET, BY END-USER INDUSTRY
CHAPTER 6: CONTINGENT WORKFORCE MANAGEMENT MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report titled, “Contingent Workforce Management Market," the contingent workforce management market was valued at $171.5 trillion in 2021, and is estimated to reach $465.1 billion by 2031, growing at a CAGR of 10.5% from 2022 to 2031.The hiring and management of non-permanent employees is referred to as contingent workforce management. This includes independent contractors, gig workers, those on a Statement of Work (SoW), agency contract labor, and temporary employees.
The non-permanent workforce is complex. However, it has numerous advantages, including the ability to rapidly scale resources and access to niche skills, as well as the ability to deliver projects and meet seasonal demand. However, the full benefits of a contingent workforce cannot be realized without effective management. For example, there may be resources in one part of the business that could fill a need in another, but due to a lack of transparency about who is being hired, costly recruitment processes are being implemented to source skills that the company already has access to.
Contingent workers are an important component of the workforce. They provide their skills and services on a temporary basis. Contractors, consultants, freelancers, and temporary workers are all part of this workforce segment. They are typically under contract to complete a project or fill a role for a set period of time. More people are joining the contingent workforce, also known as the gig economy, because it offers flexibility and the ability to personalize their work experience, as demand for greater work-life balance rises. As the way we work evolves, more organizations are turning to contingent and gig workers to fill gaps in their own workforces.
The two most significant advantages of using contingent workers over permanent employees are flexibility and cost savings. However, there are additional reasons why strategic organizations prefer to include contingent workers in their workforces over core employees. Saving money is one of the most compelling reasons for employers to hire a contingent workforce rather than core employees. Employers are not obligated to compensate independent contractors for breaks or non-productive labor. These workers are also not eligible for the same benefits as core employees, such as health insurance, holiday pay, sick leave, or vacation days. Employers only pay Independent Contractors for as long as they need them when they hire them over core employees for a project. These two factor drive the Contingent Workforce Management Market growth.
In contingent workforce management market other temporary needs can also be met by contingent workers. Assume that an employee takes parental leave or is unable to work for an extended period of time; in their absence, organizations may turn to temp agencies for assistance in finding a temporary worker with the necessary skills to take on certain responsibilities. The contingent workforce is ideal for quickly filling gaps and accommodating temporary increases in workload. Contingent workers' flexibility allows them to be retained for a week or several months, depending on the needs. In many cases, the services of a contingent worker can be extended if needs change unexpectedly. Many contingent workers are also highly skilled that why contingent workforce management market boost in upcoming year.
The contingent workforce management market is segmented into type, end user, region. On the basis of type, the market is categorized into permanent staffing and flexible staffing. On the basis of end user, it is categorized into IT and Telecom, BFSI, Healthcare, Manufacturing- Automotive, Business/Professional Service, Retail trade, Pharma/biotech/medical equip, Manufacturing- Consumer Products, Government (Excluding Education), Transportation/warehousing/packaging, Manufacturing-Others, Real Estate and rental leasing and Others. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, UAE, South Africa, and rest of LAMEA).
The key players profiled in the study include Avature, Beeline, BOWEN Group, Impartx, Coupa Software Inc, SAP SE, CXC Global, Magnit, Ramco Systems, Zeel Solutions Ltd. The players in the market have been actively engaged in the adoption various strategies such as acquisition, product launch, and expansion to remain competitive and gain advantage over the competitors in the market.
For instance, On October 5, 2021 BOWEN Group and Agilus jointly announced Agilus' acquisition of BOWEN Group. Through this merger, two significant participants in the Canadian employment market will combine their 91 years of combined recruitment expertise, award-winning talent, and established client relationships.
Key Market Insights
- By type, the flexible staffing segment was the highest revenue contributor to the market share in 2021. However, the permanent staffing segment is estimated to be the fastest growing during the forecast period.
- By end user, the healthcare segment dominated the global market share in 2021. However, the transportation/warehousing/packaging segment is expected to be the fastest growing segment during the contingent workforce management market forecast.
- Based on region, the North market registered the highest market share in 2021 and is projected to maintain the position during the forecast period.
Companies Mentioned
- avature
- Beeline
- the bowen group
- Coupa Software Inc.
- cxc global
- Zeel Solutions Ltd.
- Ramco Systems Ltd
- SAP SE
- IMPARTX
- PRO Unlimited Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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