SI Review: November 2012

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You Ask/ We Answer

Is VMS Use Still Growing?

New research indicates penetration has stalled

Question:

Are more and more staffing buyers bringing in VMS systems?

Answer:

Staffing buyers have been adopting VMS, but the penetration rate has actually stalled among “core buyers” of staffing — executives whose primary function is contingent labor management.

VMS penetration among core buyers fell to 73 percent in 2012, down from a peak of 80 percent in 2010. VMS penetration had been steadily rising among core buyers since 2005. We observed a similar stall in MSP penetration.

That said, other data suggest that while the penetration of these services may be topping out, actual usage of the tool in terms of flow of spend is continuing to grow by those who have already adopted it.

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