Contingent workforce entails to those workers which have been enrolled by a company or an organization to perform certain specific tasks for a specific period of time. Contingent workforce is an umbrella term which includes contractors, temporary workers, freelancers, consultants, etc., who offer their skills and services for a limited amount of time on a provisional basis. Management of this workforce and all things related to them is contingent workforce management.
Forecast Analysis of the Contingent Workforce Management Market
Over the years, there has been a steep increase in the demand for contingent workforce in IT and telecommunication industry which is expected to be the primary growth driver of the contingent workforce management market in the forecast period from 2022 to 2031. Along with this, increased work flexibility and ability of contingent workforce in industrial sector is predicted to boost the market growth in the analysis timeframe. Moreover, contingent workforce is highly in demand as they can be swiftly recruited in an organization to fill in vacancies. This growth in demand is expected to offer numerous growth opportunities for the market in the forecast years. However, according to the market analysts, growing co-employment contingent workforce management may become a restraint in the full-fledged growth of the global market in the coming years.
Regionally, the contingent workforce management market in the North America region is expected to be the most dominant in the forecast period. Rising labor force participation and increasing industrialization are predicted to be the main contributing factors to the growth of the market in this region.
As per a report by Research Dive, the global contingent workforce management market is expected to reach a revenue of $465,192.9 billion in the 2022–2031 timeframe, thereby growing at CAGR of 10.5% by 2031. Some prominent market players include Avature, Coupa Software Inc, Magnit, Beeline, SAP SE, Ramco Systems, BOWEN Group, CXC Global, Zeel Solutions Ltd, Impartx, and many others.
Covid-19 Impact on the Market
The Covid-19 pandemic and the subsequent lockdowns have had a catastrophic impact on various businesses and markets worldwide. The contingent workforce management market, however, faced a positive impact of the pandemic. During the pandemic, various organizations understood the importance of having a flexible workforce for streamlining expenses and operations. Moreover, outsourcing of certain tasks relieved the pressure of the organizations which increased the demand for contingent workforce further. These factors helped the market to grow during the pandemic period.
Significant Market Developments
The key players of the market are adopting various business strategies such as partnerships, mergers & acquisitions, and launches to gain a leading position in the market, thus helping the contingent workforce management market to flourish. For instance:
- In January 2021, PRO Unlimited, a leading company in contingent workforce management market, announced that it was acquiring PeopleTicker, a human resource company based in Florida. This acquisition is predicted to help PRO Unlimited to expand its footprint in the market substantially in the coming period.
- In December 2021, Workday, a human capital management and financial software provider, announced the acquisition of VNDLY, a contingent workforce management startup. This acquisition is predicted to boost the market share of the acquiring company i.e., Workday in the near future.
- In April 2022, Brightfield, a global leader in contingent workforce management, announced a partnership with Sapience Analytics, a leading workforce analytics company. This partnership is aimed at developing strategies to increase the effectiveness of contingent workforce using innovative analytics techniques. This partnership is expected to help both the companies to grow in their respective sectors significantly in the coming period.