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Surging Growth in Use of Vendor Management Systems (VMS) and Managed Service Providers (MSP) to Manage Contingent Labor Takes Global Spend to $100 Billion

Adecco Solutions Largest MSP Provider

Fieldglass Inc. Largest VMS Provider

Mountain View, Calif. -- July 2, 2012 -- Staffing Industry Analysts, the leading global advisor on contingent work, today announced the results of its annual 2012 VMS (Vendor Management Systems) and MSP (Managed Service Provider) Competitive Landscape Report. Surveying 36 VMS/MSP companies, the most significant change year over year was the growth of spend under management. Spend under management is defined as the total spend of contingent (temporary) labor that is being managed by a technology or alternative service, rather than being managed by the corporation itself.

Spend under management captured in the report grew from $84 billion in 2010 to $100 billion in 2011, a 16% increase. This reflects the strong growth that providers in the space have experienced as well as the increasing sophistication of the contingent workforce management field that necessitates the use of more powerful management tools. Staffing Industry Analysts’ research shows that companies of various sizes, in just about every industry, are utilizing MSP and VMS providers to manage their contingent workforce programs, and the penetration of MSP and VMS spend in the staffing market continues to increase.

Now in its sixth year, the VMS and MSP Competitive Landscape Report is part of Staffing Industry Analysts’ CWS Council Service and provides the most detailed and comprehensive insight available into the experience, positioning, and capabilities of VMS and MSP suppliers.

Reflecting the changing demographics, this year the report revealed that the largest global markets for MSP providers are, in order of size, the U.S., U.K. and India. MSP spend in India grew by 93%, unseating Canada which is now the fourth largest market.

The largest VMS provider was Fieldglass, Inc. with $21.5b in spend under management. The largest MSP provider was Adecco Solutions with $8.6b in spend under management.

Beyond contingent labor, VMS/MSP continues to make great strides in incorporating Statement-of-Work (SOW) consulting into programs. Staffing Industry Analysts estimates that SOW spend in VMS/MSP programs grew by more than 20% in 2011. MSP programs are able to flexibly build a SOW solution that matches unique requirements of each client. Flexibility is the secret sauce for growth in this area.

The key contingent workforce management trends were: M&A activity, global expansion, the growth of total talent management and growth in mid-market and in mega programs. These trends are affecting the contingent staffing marketing in significant ways. M&A activity has helped the big get bigger and broadens the footprint of the players in the market. Global expansion is changing how business is done. Global programs are not being implemented as cookie-cutter solutions, but are increasingly taking into consideration legal and cultural differences. The rise of total talent management reflects how corporations are increasingly looking at their entire mix of workers of all types and considering the implications of contingents with their regular workforces. Finally, while the use of VMS/MSP was once largely for very large corporations; now it is spreading toward the mid-market, while the big programs simultaneously continue to get larger.

For more information about this report or Staffing Industry Analysts’ other research, visit www.staffingindustry.com or contact member services on 800-950-9496.

About Staffing Industry Analysts
Staffing Industry Analysts is the global advisor on contingent work. Known for its independent and objective insights, the company's proprietary research, award-winning content, data, support tools, publications and executive conferences provide a competitive edge to decision-makers who supply and buy temporary staffing. In addition to temporary staffing, Staffing Industry Analysts also covers related staffing sectors. Founded in 1989, acquired by Crain Communications Inc in 2008, the company is headquartered in Mountain View, California, with offices in London, England.

Media Contact
Hinda Chalew, Sr. VP, Marketing & Interactive Services, Staffing Industry Analysts, hchalew@staffingindustry.com, 650-390-6197

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