The honeymoon continues. Ten months after Beeline bought OnForce, the newlyweds have surveyed the market and cemented their relationship with a new plugin, OnForce Sourcing.
Like many in the industry, if you have wondered why VMSs have had such a keen interest in FMSs, or freelancer management systems (in addition to Beeline’s acquisition of FMS OnForce, IQNavigator recently formed a strategic partnership with Work Market), Beeline’s recent declaration may help answer that question.
Beeline, one of the largest vendor management systems (VMS) in terms of spend according to Staffing Industry Analysts’ research, announced an enhanced integration with OnForce to purportedly offer “the first ‘self-sourcing’ solution for enterprise companies.” What does this mean? While Beeline and OnForce had been operating essentially as two separate entities, OnForce will now be “plugged into” Beeline’s VMS to give enterprises an option for self-sourcing workers. This means when a company (or its MSP) inputs a requisition through Beeline’s VMS, they will now have the option — in addition to sending the requisition to staffing agencies — to send an invitation to apply for that job directly to independent workers. So while users of contingent labor can still access agency talent through Beeline’s VMS, they can also search for and hire a temporary independent worker directly at the same time (at a purportedly far lower total cost and with faster fill times if that option is ultimately chosen), while managing all aspects of the requisition through the Beeline VMS platform.
Given the war for talent, this plugin will enable customers to be more competitive. As it does not require an additional piece of technology to install or integrate, enterprises can (in theory) begin sourcing workers directly when convenient without disrupting their existing business or having to learn how to navigate a new platform.
What are the ramifications for vendors? While MSPs may applaud the announcement (a direct-to-talent model potentially gives MSPs a whole host of extra responsibilities), staffing agencies will likely be disheartened at the possibility of another technology solution that appears, at first glance, poised to take market share. VMSs have not been popular among staffing suppliers (due to the pressure they put on agencies’ margins), while Human Cloud platforms (examples of digital platforms that allow for the direct sourcing, engaging, and payment of contingent labor are UpWork and SpareHire) have been viewed by some as potentially transforming the industry and others as “disrupting” incumbent players. This integrated offspring will not be celebrated by staffing firms, although the fact that it gives enterprises a simple means with which to access freelance talent is good for the contingent labor ecosystem as a whole.
It’s likely the “self-sourcing” portion of Beeline’s VMS will be a small percentage of total spend at the beginning. However, many wonder whether this signals a catalyst for a time when self-sourcing grows in use to rival agency spend (perhaps even consuming it entirely). Time will tell. The likeliest scenario is enterprises will continue to use both agencies and directly-sourced workers, through their VMS (through platform integrations such as Beeline/OnForce) or directly through standalone third-party Human Cloud platforms such as ShiftGig (US), Staff-Finder (Switzerland), or Freelancer.com (Australia).
At the end of the day, the integration of a direct-to-talent platform into a VMS is an important innovation signaling the evolution of the contract labor ecosystem. Staffing firms and human cloud companies should sit up and take note.
MORE: Where is staffing industry tech heading?
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