Contingent Workforce Management (CWM) and Vendor Management System (VMS) State of the Market 2024 – Resilient Progress Amid Economic Uncertainty

Post-pandemic, volatile business and talent demands have compelled organizations to rethink their workforce strategies while realizing the importance of a contingent workforce. This realization is driving the expansion of the Contingent Workforce Management (CWM) / Managed Service Provider (MSP) and Vendor Management System (VMS) markets. Despite the recent economic slowdown, CWM and VMS providers continue enhancing their service delivery capabilities and advancing process digitalization.

MSPs and VMSs are significantly investing in enhancing their capabilities in managing non-traditional talent acquisition categories, including services procurement, independent contractors/freelancers, and direct sourcing. Simultaneously, providers are tailoring their offerings to address the unique needs of specific client segments, such as mid-market businesses and clients in the healthcare and blue-collar industries. They also leverage generative AI, advanced analytics, and automation to build comprehensive, end-to-end CWM solutions.

In this report, we evaluate the global dynamics of CWM/MSP and VMS markets, highlighting regional variations, buyer adoption trends, technology trends, and solution trends. The report also explores the market’s future direction.