The VMS Industry
VMS Industry Trends
Contingent workforce statistics are staggering:
- More than $3 trillion has been spent globally on the contingent workforce. This includes independent contractors, statement of work consultants and agency workers.
- 35 percent of an average large company’s workforce is contingent, and is expected to increase to almost 50 percent in the next few years.
- By 2030, the U.S. workforce is projected to include 80 million contingent workers.
- 92 percent of large companies either have a vendor management system in place, or plan to implement one within the next 2 years. 80 percent of large companies either have a managed service program, or have plans to implement one in the next two years, to manage this segment of the workforce.
As the contingent workforce has evolved into such a large and professional segment, companies of all sizes have realized that contingent workers can do a lot to help manage costs while promoting topline growth.
That’s why specialized categories to describe this workforce have sprung up, testifying to the importance of non-permanent workers, whether they think of themselves as freelancers, independent professionals, independent contractors or consultants in today’s economy. Similarly, it’s important for companies to have not only full visibility into their Statement of Work (SOW) spend, but also automated processes for elements like vendor selection, time and materials tracking, service procurement and invoicing.