SAP Fieldglass's External Workforce Insights 2018 study, 44% of workforce spend at large corporation is on external, non-employee talent.
The report goes on to say this share will grow over the next few years due to "increasing demand and competition for external workers".
A important point to note is when corporations talk about contingent talent or external talent they generally include services firms (consultants, marketing agencies, facility management companies, etc.) in addition to freelancers and other independent workers.
The report chart above (click to enlarge) illustrates this and shows that the companies surveyed are spending about the same amount on external service providers and external independent workers.
The report also points out that while cost is still important, "it's no longer the principal driver for using an external workforce. Rather, the external workforce is now seen as essential to improving business performance."
The chart below shows that most of the respondents feel external talent is in mission critical roles at their firms.
External Workforce Insights 2018 is another study showing non-employee labor at most corporations is large and growing and increasingly used in core and strategic business functions.
While this is not new news for regular readers, the report has more details and is well worth reading.
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