Contingent Workforce Management Market Size Projected to generate a Revenue of $465,192.9 Bn by 2031Download Sample Reports Overview
The Global Contingent Workforce Management Market Size is predicted to be valued at $465,192.9 billion by 2031, surging from $171,531.1 billion in 2021, at a CAGR of 10.5%.
Impact Analysis of COVID-19 on the Contingent Workforce Management Market
The COVID-19 outbreak has greatly influenced how people work. With a substantial increase in remote work, the demand for a contingent workforce increased significantly. Many organizations adopted flexible working cultures during the outbreak. The expenditure on various solutions for managing contingent workforces has increased at a rapid pace. Workforce management was one of the strategies adopted by companies to counteract the disruption caused by the COVID-19 pandemic. Post covid-19 pandemic, businesses are still focusing on workforce flexibility and offering more remote work opportunities to employees and some of these strategies are likely to be permanent in the upcoming years.
Global Contingent Workforce Management Market Analysis
Contingent workers are independent contractors, freelancers, gig workers, and employees provided through agencies. They are employed by businesses to fill a temporary skill shortage, such as during a permanent employee's maternity leave. Cost savings are a company's main benefit when hiring contingent workers. Contingent employees frequently cost less in terms of pay and benefits (most contingent workers receive no benefits). Additionally, since many contingent workers have previous training, the business does not have to spend money on extra training. Furthermore, there are fewer expenses involved with having a large labor surplus because the corporation simply hires these individuals as needed. For instance, a contract lawyer who assists as needed will only be paid for the services provided, but an in-house lawyer will need competitive yearly pay and benefits. These are the major factors anticipated to boost the contingent workforce management market share during the analysis timeframe.
Several contingent workers don't receive the same onboarding, orientation, and training as permanent employees, and thus could require additional management when they first start. Some supervisors are afraid to trust independent contractors and may micromanage their work until they are sure they can complete the task. This may take time and resources away from more crucial objectives. This may hamper the contingent workforce management market growth during the forecast period.
The proportion of contingent workers in the telecom industry is growing significantly. Organizations in these industries are increasingly using contingent workers for specific projects or short-term assignments. Before making a permanent hire, management is using the fixed-term time to evaluate abilities and determine whether contingent workers meet the company's needs. These are the major factors anticipated to boost the contingent workforce management market growth during the analysis timeframe.
Global Contingent Workforce Management Market, Segmentation
The global contingent workforce management market is segmented based on type, end-user industry, and region.
The type segment is classified into permanent staffing and flexible staffing. Among these, the flexible staffing sub-segment accounted for the largest contingent workforce management market share in 2021. The firm's staffing flexibility and lower expenses are benefits of hiring contingent labor. By using contingent labor, a company may acquire and fire new employees rapidly and with little consequence, increasing the flexibility of its staffing. For instance, because temporary employees do not anticipate a long-term engagement with any one employer, the business can end employment at any moment without affecting the individual, as it would if it were to fire a core employee.
The end-use industry segment is further classified 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. Among these, the business/professional service sub-segment is predicted to have the fastest-growing contingent workforce management market share in 2031. Any work a business owner would need to outsource to have more time for their top priorities can be considered professional services. Whether it's to support GRC initiatives, digital transformation initiatives, or to increase general responsiveness to market changes, contingent labor can offer effective solutions for certain organizational challenges. Organizations are increasingly considering a partnership with a contingent labor service provider to find the right talent and flexible solutions. These are the major factors anticipated to boost the contingent workforce management market size during the analysis timeframe.
The contingent workforce management market share in the Asia-Pacific region is expected to grow with the fastest CAGR during the forecast period. Many companies in Indonesia, India, Vietnam, and Thailand are currently hiring their employees as a contingent workforce and are expected to hire more in the upcoming years to help with workloads when experiencing a headcount shortage. IT, Healthcare, FMCG, Logistics, Financial Institutions, Professional Services, Manufacturing, and Government agencies are major sectors using a contingent workforce in this region. Post-pandemic rebound presents businesses with ample opportunities in the Asia-Pacific region owing to talent shortage and fluctuations in supply and demand of skilled workforce.
Key Players in the Global Contingent Workforce Management Market
Some of the leading contingent workforce management market players are
- BOWEN Group
- Coupa Software Inc
- SAP SE
- CXC Global
- Ramco Systems
- Zeel Solutions Ltd