IT Staffing Report: Aug. 14, 2014

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Adecco’s Beeline VMS division acquires OnForce

Beeline, a VMS provider owned by Adecco, acquired online staffing/independent workforce management platform OnForce. The deal closed Friday.

The combination is designed to allow Beeline customers to add an independent contractor offering to their current services or manage existing independent contractors more effectively.

“There is very little overlap between companies, and together we solve a massive business problem in a unique way,” said Beeline President Doug Leeby.

“Companies expect us to help them find the best people at the best price with the least amount of risk exposure — whether that is through the supply chain or direct sourcing,” Leeby said. “This merger will meet the supply and demand needs of our clients by directly connecting them to independent contractors without the risk of an unvetted and uncontrolled sourcing process.”

The firms will operate as individual identities, though they will integrate back-office functions by the end of the year. OnForce CEO Peter Cannone will report to Leeby.

“For many companies, accessing and managing an ‘extended workforce’ is a fragmented process involving a mixture of technologies such as VMS, [freelancer management systems], spreadsheets and other ad-hoc tools,” said Adecco CEO Patrick De Maeseneire. “The new integrated offering will combine Beeline’s powerful process automation and analytics for sourcing and managing talent through staffing agencies, with OnForce’s ability to access and manage today’s growing population of freelance talent. This will provide our clients with a unique way to simplify their operations and optimize the management of their extended workforces.”

The combined company will aim to serve Global 2000 clients who used extended forces, i.e. temporary staff, independent contractors, etc.

Beeline’s announcement comes as research shows contingent workforce managers are showing more awareness of and interest in online staffing. A survey this year by Staffing Industry Analysts found 10 percent of CW buyers planned to use online staffing in the next two years; that’s up from a similar survey in 2013 when only 3 percent planned to use online staffing over the next two years.

“Over the past year or so, we have been noticing signs that staffing industry players are seeing how online platforms can have other uses besides supporting open labor marketplaces,” SIA Affiliate Analyst Andrew Karpie observes. “They can be deployed as tools that individual businesses can use for engaging and adequately managing the growing independent, extended workforce.”

Online staffing refers to an online platform that enables specific hirers and specific workers to enter into, complete and transact payments for given work arrangements.

OnForce enables client companies to engage independent contractors online, including building a private network of choice independent or freelance workers. It also allows for management of the progression of work and facilitates payments.

OnForce differs from most other online staffing firms in that buyers can use its platform to send independent contractors directly to a site where work is to be performed. Often with online platforms, the work takes place entirely online.

OnForce had rolled out enterprise-level offerings for large customers last year through its “workforce expansion” and “workforce optimization” services. And in April, Onforce announced a partnership with independent contractor compliance/payrolling firm ICon.

Jacksonville, Fla.-based Beeline ranks among the largest VMS providers in terms of total temp/contract spend and outsourced spend in Staffing Industry Analysts’ 2013 VMS and MSP Supplier Competitive Landscape report. Terms of the transaction were not announced, but the deal will not have a material financial impact on the Adecco Group.