State of the Market

Contingent Workforce Management (CWM) Services and Technology Ecosystem State of the Market 2025

The contingent workforce market steadily grew as organizations reassessed their workforce strategies and reaffirmed contingent talent’s importance. This led to expansion of the Contingent Workforce Management (CWM) / Managed Service Provider (MSP), Vendor Management System (VMS), and Freelancer Engagement and Management System (FEMS) markets. Enterprises are now moving beyond a recovery-driven phase and structurally expanding, underpinned by rising demand for more flexible workforce models. 

Providers are deepening their capabilities across non-traditional talent categories, including services procurement, independent contractors and freelancers, and direct sourcing. They are also emphasizing on skills intelligence, while tailoring their offerings to the unique needs of specific client segments, such as healthcare and blue-collar industries. Across the ecosystem, providers are leveraging generative AI, advanced analytics, and automation to deliver more comprehensive, end-to-end CWM solutions. 

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