Even in the face of economic turmoil and geopolitical instability in parts of the world, many companies are expanding their contingent workforce programs globally. In SIA’s recent 2024 Workforce Solutions Buyers Survey, 41% of participating organizations said they would likely explore global management of their contingent workforce within two years; the same proportion already had global management in place.

Organizations considering global expansion will want to evaluate the complexity of potential target markets and their strengths and weaknesses. To that end, SIA recently released its Most Complex Contingent Markets Globally 2024 report to help you determine which countries will be easier to navigate in your expansion efforts. Whether your goal is to expand your program’s footprint, further your organization’s growth trajectory and/or pursue other opportunities, this report and interactive tool helps you understand where various complexities will arise when considering expansion for your contingent workforce program.

The report examines global market complexity rather than attractiveness. It compares 75 contingent markets across 12 different criteria that assess the merits and characteristics of each market to determine the complexity of establishing a contingent workforce program. Factors measured to rank the contingent markets include market maturity, regulations, pricing environment, political landscape and economic uncertainty. A new criterion — technology framework — was added this year to assess each market’s ability to develop digital technology.

Most complex. Egypt is the most complex market globally in this year’s analysis, followed by Russia and Argentina. In particular, Egypt scored among the most complex markets for its unfavorable economic climate, high labor shortages and rigid employment regulations. Russia scored among the most complex markets for its staffing market maturity, independent contractor usage, temporary agency work regulations, governance quality and political landscape — perhaps not surprising given its ongoing war with Ukraine.

Mexico, the fourth most complex staffing market overall, ranked highest among countries in the Americas region, while Kazakhstan (11th most complex overall) is the most complex APAC market.

Least complex. The 10 least complex countries are all efficient labor markets with favorable pricing environments. They have strong governance, technological infrastructure and access to high quality human capital. Denmark and the Netherlands ranked as the least complex markets overall, followed by Finland. Overall, Europe performs strongly in this year’s assessment, accounting for seven of the 10 best markets. The remaining three are in APAC, with Singapore ranking highest at No. 4.

Americas.  Looking at just the Americas region, the US at No. 13 and Canada at No. 17 are the least complex markets, with exceptional scores in their MSP/VMS maturity and employment regulations rigidity. However, the US is challenged by its relatively low presence of independent contractors.

It is important to acknowledge that highly complex markets are not impossible to operate in. Several established staffing markets where temporary agency workers are used prevalently still rank as some of the most complicated. However, the report highlights that additional challenges and possibly more significant risks and costs will be involved.

Conversely, the least complex markets will not come without difficulties, with some local expertise recommended. 

The market assessment report’s accompanying interactive tool enables you to customize this assessment to your priorities. For example, you can weight weigh criteria, creating a personalized ranking dependent on your business strategy. Still, even without any adjustment, this report provides a valuable ranking and analysis for contingent workforce managers.

One area of focus that can’t be accurately measured, however, is language and cultural barriers. Addressing the significance of language and cultural barriers when expanding your contingent workforce program to new regions is crucial. Such barriers can cause substantial challenges for programs. It is advisable to have local expertise and thoroughly research any market considered for expansion, especially the more complex ones. Local expertise is critical for understanding cultural nuances, legal differences and the staffing market landscape.

The Most Complex Contingent Markets Globally 2024 report is available online to members of SIA’s CWS Council. Members can also access the interactive, online assessment tool to refine the analytical framework to suit their companies’ needs and business strategy.