Workday Inc. (NASDAQ: WDAY) struck a deal to acquire HiredScore, a sourcing automation tool that uses artificial intelligence to rank external and internal candidates, including contingent workers.

The deal is an example of how large firms are expanding their workforce ecosystem operations.

A recent report by SIA noted almost half of the world’s largest software firms conduct some type of activity in the workforce ecosystem. For example, Microsoft Corp. has LinkedIn among its offerings. Workday ranks as the 16^th-largest software firm by market capitalization and it already had extensive operations in the workforce ecosystem including the Workday Vndly vendor management system for contingent workers.

SIA Executive Director of Global Research John Nurthen said Workday is an important software brand “and increasingly competing in same space where a lot of staffing firms are starting to compete as well.”

Workday announced the acquisition of HiredScore today. The company said it aims to provide customers with a comprehensive, transparent talent acquisition and internal mobility offering.

“HiredScore is the perfect complement to our product portfolio as we look to provide AI solutions that deliver real business value for our customers,” Workday CEO Carl Eschenbach said.

HiredScore has offices in New York and Tel Aviv, Israel. Its website cites as clients firms such as Dell and GM.

“By combining our efforts and innovations with Workday, we'll be able to deliver even more value to companies around the world as they look to build their future HR function,” HiredScore founder and CEO Athena Karp said in a press release.

Updated: The transaction is expected to close in the first quarter of Workday's fiscal year ending April 30 subject to satisfaction of customary closing conditions, including required regulatory approvals. Terms of the transaction were not announced at this time.