All signs point to the start of a much-awaited economic recovery worldwide, led by an increase in demand for temporary labor and service providers. In the US, a recent report by the labor law firm Littler Mendelson predicts that contingent labor could rise to as much as 30 to 50 percent of the entire workforce this year. An astonishing 73 percent of the survey respondents plan to add contingent labor in 2010, with nearly one third of them planning increases of 50 percent or more. Similarly, the US Bureau of Labor Statistics reports a continuous growth pattern in temporary work since August 2008.

Known to be one of the leading indicators of economic change, contingent labor and service providers like offshore workers can be deployed rapidly in the wake of a recession. This labor strategy allows companies to meet varying levels of demand without the cost and commitment of hiring full-time workers. Now, more than ever, how well companies manage their temporary workforce will play an important role in their financial and overall business success moving forward from this recession.

Benefits of a Vendor Management System
Recent years have shown a dramatic increase in the use of VMS technology. According to Staffing Industry Analysts’ 2009 Staffing Buyers Survey, 63 percent of the companies surveyed have a VMS in place. The firm expects that number to grow to 81 percent by 2011, an astonishing prediction, given the fact that the industry as a whole is just a decade old.

Overall, there are four proven benefits to using VMS technology as part of a management strategy for labor programs: visibility, compliance, cost control, and improved efficiency. With complete visibility across an entire workforce, companies can more accurately determine where changes and improvements are needed. Time, cost, compliance, quality, and quantity metrics are that much more meaningful when applied company-wide. One healthcare provider reported that through their use of the Fieldglass solution, they were able to reduce cycle times by 75 percent and time-to-fill metrics by approximately 20 percent.

Another important benefit is compliance. With a VMS, companies can incorporate financial oversight and enforce corporate and governmental policies as it relates to the acquisition and management of contingent workers and outside services.