Contingent Workforce Management Market Expected to Reach $465.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Contingent Workforce Management Market," The contingent workforce management market was valued at $171.5 billion in 2021, and is estimated to reach $465.2 billion by 2031, growing at a CAGR of 10.5% from 2022 to 2031.

Flexibility and cost savings are the two main advantages of using contingent workers management for permanent employees. However, there are additional reasons why strategic firms prefer contingent workers over core employees when building their workforces. Cost savings are one of the main reasons why employers choose contingent workers over core staff. Employers aren’t required to pay independent contractors for breaks or non-productive labor. These workers also aren’t entitled to the same types of benefits afforded by core employees, such as health insurance, holiday pay, sick leave or vacation days. Employers only pay when they are actually using contingent workforce. These are the main aspects that are projected to increase the market share of contingent workforce management over the study period.

However, the hiring of contingent employees has many issues. Finding a contingent worker that can perform the job and adjust quickly to the working culture might be challenging. Organizations may also encounter legal and compliance concerns as a result of worker misclassification. Organizations are frequently wary of disclosing confidential information to these non-permanent employees. A corporation faces the danger of incurring significant fines if it classifies someone as a contingent worker when they should be considered an employee. Before planning a strategy to hire contingent employees, organizations must be aware of the rules that apply in their sector.

The expansion of contingent workforce management in recent years has been remarkable. The number of contingent employees in the United States reached approximately 51.5 million in 2020. In 2021 alone, 32% of businesses replaced full-time paid employees with contingent workforce management to save money and establish more flexible teams. Many businesses are devising strategies to deal with the extraordinary uncertainty that has developed. Furthermore, company that embrace the contingent workforce management marketplace stand to achieve better success in the face of talent shortages, the gig economy, and new technologies. The emergence of AI is also having a favorable effect on contingent workforce management. for example, the increase of AI contact centers that automatically log consumer customer satisfaction scores (CSAT). By using contingent workforce management software, companies can better manage their hybrid workforce all this factors make an opportunity for the contingent workforce management market size.

The contingent workforce management market share is segmented on the basis of type, end user, and region. By type, it is classified into permanent staffing, and flexible staffing. By end user, it is divided into IT and telecom, BFSI, healthcare, manufacturing- automotive, business/professional service, retail trade, pharma/biotech/medical equip, manufacturing- consumer products, government (excluding education), transportation/warehousing/packaging, real estate and rental leasing, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the contingent workforce management market forecast report include Avature, Beeline, BOWEN Group, Impartx, Coupa Software Inc, SAP SE, CXC Global, Magnit, Ramco Systems, and Zeel Solutions Ltd.

The report offers a comprehensive analysis of the global contingent workforce management market analysis by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Contingent Workforce Management Industry

• COVID-19 has negative impact the contingent workforce management industry because of the lay offs in various companies.
• COVID-19 impacted almost all industries and the contingent workforce management companies stop the hiring. The lockdown imposed across several countries and the fear of contracting the novel coronavirus led to sluggish demand in the market.
• Social distancing norms, and closed borders, due to the pandemic, across various countries such as China, India, and the U.S. have affected the global market

Key Findings of the Study

• Based on type, the flexible staffing sub-segment emerged as the global leader in 2021 and the permanent staffing sub-segment is anticipated to be the fastest growing during the forecast period
• Based on end user, the healthcare sub-segment emerged as the global leader in 2021 and the business/professional service sub-segment is predicted to show the fastest growth in the upcoming years
• Based on region, the North America market registered the highest market share in 2021 and is projected to maintain its position during the forecast period