A Hybrid Model

At the Contingent Workforce Summit in Dallas last week, many staffing agencies spoke to me of what they think is a new development in contingent workforce management i.e. the 'hybrid model'. This model comprises of mixing best of breed components versus a vertically integrated suite of services from a single vendor. The three components that are integrated are the VMS, the MSP function and the supplier pool. By using different vendors for each of these functions and creating a master pool of suppliers for different categories, efficiency and competitive pricing forces can be brought to bear. In addition the degree of reliance on a single vendor is reduced. Just as a hybrid car gives better pricing, reduces dependency on gas and pollutes less, the contingent workforce management hybrid model presumably gives better pricing, reduces dependency on a single vendor and lowers inefficiency. Will it work? Many companies planning to adopt this model seem to think so. Only time will tell.

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