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Contingent Workforce

The Extended Workforce’s Understated 2026 Shift

Way back (and I mean, waaaaay back) in 2009, I was on record as saying the contignent workforce would come out the Great Recession looking much, much different. The stats were there to prove it: 20% of the workforce around the globe was considered “non-employee,” a nearly 40% increase from pre-Recession days.

I mean, I also said this workforce was a “superhero,” so, yeah.

The point is this: there is a commanding undercurrent of fluidity and agility inherent in the extended workforce that makes it a malleable channel of talent for (nearly) no matter what the business world throws at us.

Ardent Partners and Future of Work Exchange research pegs that aforementioned stat at 49.7% of the average company’s workforce considered to be external/contingent/extended/etc., a factor which proves something very, very, very powerful:

The extended workforce isn’t a category anymore.

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To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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AI, Direct Sourcing, and the Human Future of Workforce Solutions

Conversations about the future of workforce solutions increasingly circle around two themes: artificial intelligence and direct sourcing. Yet beneath the buzzwords lies a more nuanced reality. The evolution of MSP and contingent workforce strategies is not about replacing people with technology, but about using new tools to enhance how organizations find and manage talent. We continue with insights from a recent discussion between FOWX’s Christopher Dwyer and Denise Stalker, SVP, Managed Services for TalentProcure.

Despite the Tech, Humanization Is Still at the Heart of Workforce Solutions

AI is now present in many parts of the talent lifecycle. Skills matching, resume screening, chat based candidate engagement, and onboarding automation are becoming more common. Still, adoption is uneven. Only a small share of enterprises consider themselves true AI leaders. Many are piloting tools, running limited experiments, or trying to understand where AI fits in their workflows.

Generational dynamics influence this adoption. Younger workers who grew up with digital tools are often comfortable interacting with automated systems. Receiving a text from a bot about a job opportunity can feel normal to them. More experienced workers may be skeptical or prefer human interaction. This creates a transition period where organizations must design experiences that serve multiple comfort levels.

AI as an enabler. From an MSP perspective, AI is best viewed as an enabler. It can streamline onboarding, accelerate screening, and improve data visibility. It can reduce administrative burden and free program teams to focus on higher-value activities such as stakeholder engagement and supplier strategy. What it does not do is eliminate the need for human judgment. Workforce management still involves nuance, context, and relationship management that algorithms alone cannot handle.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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The Mid-Market Moment and the Evolution of CWM

The contingent workforce landscape is entering a new phase of maturity, and one of the most important developments is happening in a segment that once received far less attention. Mid-market organizations are rapidly becoming a focal point for managed service providers (MSPs) and workforce solutions leaders. This was a recent topic of discussion between FOWX’s Christopher Dwyer and Denise Stalker, SVP, Managed Services for TalentProcure.

For years, the spotlight stayed on large enterprise programs with massive spend and global scale. Today, mid-sized businesses are stepping forward with similar needs for structure, visibility, and strategic workforce management. This shift reflects how the world of work has grown more complex. Even organizations with 25 to 50 million dollars in contingent workforce spend face regulatory pressures, compliance demands, and cost controls that rival those of much larger enterprises. They require reporting, governance, and risk mitigation. They also want savings and efficiency. The difference is that many mid-market firms do not have deep internal teams dedicated to contingent labor. Often, one HR or procurement leader is juggling multiple responsibilities. That reality creates both a challenge and an opportunity.

MSPs that focus on the mid-market recognize that these programs require a high-touch model. Smaller clients do not want smaller service levels. They expect the same care, responsiveness, and expertise that a global enterprise would receive. In many cases, they need more guidance because they lack internal subject matter experts. Regulatory updates, classification rules, and process design are not simple areas to master without support. A strong MSP can fill those gaps and act as an advisor rather than just a program administrator.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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Atrium’s AIR Represents the Next Generation of Workforce Solutions

The modern Managed Service Provider (MSP) offering is built on decades (as in literal decades) of serving as the most mature workforce solution in the extended workforce ecosystem. Staffing-owned or vendor neutral, these offerings have stood the test of time and regularly support the industry’s largest and smallest contingent workforce programs.

Since the mid-1990s, Atrium has built its reputation as a Best-in-Class services-oriented offering that blends a mix of managed services and recruitment solutions with a tech-oriented approach that embraces new platforms in the talent arena. With its legacy status cemented, the company enters a new era with its launch of Atrium AIR, dedicated innovation division designed to fuse the company’s service‑driven heritage with next‑generation technology, AI, and product development.

AIR, though, is more than just a new initiative from the global provider; the offering is a structural expansion of Atrium’s core operating model and stands alongside its workforce and talent solutions as a full-fledged division with its own charter and pathways. Atrium’s goal is to accelerate the identification and answers to key pain-points across extended workforce programs by incubating new ideas and delivering market‑ready, intelligence‑driven solutions that meaningfully improve program performance.

“As a service provider, Atrium has been innovating for three decades, deploying customized solutions that address our customers unique challenges,” said Brad Martin, Chief Revenue Officer at Atrium. “Launching AIR is an important evolution of this motion, further enabling Atrium to innovate and bring to market technology products that disrupt the status quo, and most importantly drive value for our users.  Innovation has been in Atrium’s blood since day one, AIR is a continuation of this journey.”

The Future of Work Exchange believes that an MSP’s long-standing proximity to the innerworkings of contingent workforce management translates into an added edge in truly understanding how to solve real-world problems through the application of new technology, new strategies, and customizable and flexible talent-oriented approaches. Thus, AIR makes sense for a solution like Atrium that has an advantageous vantage point within the industry.

“Front-row visibility” into the shifting parameters of the extended workforce, alongside Atrium’s longstanding dedication to innovation and technology expertise, positions AIR as a hub of both service intelligence and technical capability.

One of AIR’s central missions is the adoption and deployment of agentic AI as more than just a buzzword; AIR will serve as an expert engine for decision support, workflow acceleration, and, most importantly, predictive insights. This is incredibly apparent in the company’s debut of ZephyrIQ, Atrium’s new workforce intelligence platform. Through a convergence of generative AI functionality and a conversational interface, ZephyrIQ delivers on-demand talent and workforce insights across the spectrum of extended workforce management. Atrium’s core focus with this tool is to surface trends, answer complex program questions, and power the intelligence that progresses the orchestration of talent and work.

“AIR operates at the intersection of deep industry expertise, technology innovation, and customer insight,” said Martin. “Our lean product innovation methodology grounds innovation in real business needs, to ensure every product has a clear purpose, a defined outcome, and a path to scale.”

While the MSP model may be the most established and mature solution in the workforce ecosystem, they have incredible room to grow and expand. Longevity is a strategic advantage for Managed Service Providers as their vast operational expertise and excellence in program governance allow them to transform their value in concert with the new world of skills-based hiring and Future of Work-driven talent orchestration.

With both AIR and ZephyrIQ, Atrium signals that the future of workforce solutions will be defined by those providers that can effectively blend the excellence of services orientation and technological ambition.

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AI, Total Talent, and the Road to 2026 — What the Next Generation of Workforce Programs Will Demand

During a recent FOWX podcast, Christopher Dwyer, senior vice president of research and managing director of the Future of Work Exchange for Ardent Partners, spoke to Orli Becker, executive vice president and managing director of contingent workforce solutions for AMS, Orli Becker, on the impact of direct sourcing, the power of skills-based hiring, how AI is transforming extended workforce management, and more

In part three of our three-part series, we highlight the major discussion points and a link to the full event.

As artificial intelligence reshapes nearly every corner of the enterprise, the contingent workforce industry finds itself both energized and challenged by its potential. AI, combined with emerging workforce models like total talent management, will fundamentally redefine how organizations plan, deploy, and manage labor in the years ahead. Yet, despite the excitement, the path forward remains complex.

AI adoption in workforce solutions is accelerating rapidly. Technologies leveraging generative, predictive, and agentic AI are already enhancing sourcing, screening, workforce analytics, and program automation. These tools promise to reduce administrative burden, surface insights faster, and improve decision-making. For service-heavy industries like workforce management, AI has the potential to amplify human expertise rather than replace it, particularly when deployed with a “human-in-the-loop” approach.

AI Fragmentation and Risk Shape AI Adoption

However, the industry remains highly fragmented. Vendor management systems, MSP platforms, direct sourcing tools, freelancer management systems, SOW solutions, and contractor compliance platforms often operate in isolation. There is currently no single AI orchestrator capable of unifying these systems into a seamless user experience. This fragmentation limits AI’s impact, creating friction rather than simplicity for program stakeholders.

At the same time, organizations are approaching AI with caution. Concerns around bias, ethics, data privacy, and regulatory compliance are prompting rigorous scrutiny of AI-enabled solutions. While enterprises want innovation, they also demand assurance that these technologies are safe, transparent, and aligned with evolving legislation. This tension between opportunity and risk will likely shape AI adoption curves well into 2026.

Total Talent Management and Hybrid MSP Models Align Talent Strategies

Beyond technology, the future of workforce management will be defined by broader structural shifts. One of the most significant is the growing movement toward total talent management. Long discussed but rarely executed at scale, total talent seeks to unify internal and external workforce strategies under a single framework. This approach enables shared talent pools, consolidated analytics, and holistic workforce planning that spans full-time, contingent, freelance, and project-based labor.

The benefits of total talent are substantial. Organizations gain visibility into skills across the entire workforce, enabling more effective deployment, upskilling, and mobility. Skills-based hiring becomes exponentially more powerful when applied across all worker types, allowing enterprises to focus on capabilities rather than headcount categories. Over time, this creates a more agile and resilient workforce capable of adapting to rapid market change.

Another notable trend is the growing shift toward in-house program management. Dissatisfaction with transactional MSP models is driving many organizations to bring contingent workforce oversight internally. Increasingly, former MSP professionals are joining client-side teams, enabling enterprises to replicate cost-saving tactics without outsourcing execution. However, this does not signal the end of service providers. Instead, hybrid models are emerging, where organizations retain strategic control while leveraging external expertise for design, stabilization, or specialized services.

This evolution reflects a broader mindset shift. Talent is no longer viewed solely as a cost center but as a strategic asset tied directly to revenue, innovation, and risk management. Workforce planning, once an afterthought for contingent labor, is becoming a core discipline. Organizations that succeed in this next phase will be those that align talent strategy with long-term business outcomes rather than short-term savings.

Looking toward 2026, the message is clear. Becker remarked that the future of workforce management will demand integrated thinking, talent-centric design, and thoughtful adoption of technology. AI will play a critical role, but only when paired with human expertise and holistic strategy. Direct sourcing, skills-based hiring, total talent management, and hybrid operating models will define the next generation of programs. For organizations willing to embrace this complexity, the reward will be a workforce built not just for efficiency, but for enduring competitive advantage.

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Direct Sourcing and Talent-Centric MSPs — Redefining How Organizations Access Skills

During a recent FOWX podcast, Christopher Dwyer, senior vice president of research and managing director of the Future of Work Exchange for Ardent Partners, spoke to Orli Becker, executive vice president and managing director of contingent workforce solutions for AMS, Orli Becker, on the impact of direct sourcing, the power of skills-based hiring, how AI is transforming extended workforce management, and more

In part two of our three-part series, we highlight the major discussion points and a link to the full event.

Direct sourcing has long been discussed as the future of contingent workforce strategy, yet only recently has it begun to gain meaningful traction in the U.S. market. This momentum reflects a broader shift in how organizations think about talent, ownership, and workforce engagement. Direct sourcing is no longer just an efficiency play; it is emerging as a foundational pillar of talent-centric workforce models.

For years, direct sourcing struggled to move beyond theory. While organizations recognized the potential of direct sourcing to reduce costs and improve talent quality, adoption remained slow. A key reason was ownership. Contingent workforce programs traditionally sat within procurement, where the primary focus was compliance and cost control. While these priorities are critical, they often leave little room for strategies centered on candidate experience, employer branding, or long-term talent communities.

That dynamic is changing. Increasingly, HR and talent acquisition leaders are becoming influencers (and in many cases owners) of contingent workforce programs. Recent data suggests that more than half of these programs are now human resources- or talent acquisition-led, a dramatic shift from historical norms. This evolution is helping organizations better understand the true value of direct sourcing, not merely as a cost lever, but as a means of accessing higher-quality, more engaged talent.

Staffing-Aligned vs. Vendor-Neutral Direct Sourcing

At its core, direct sourcing enables organizations to leverage their employer brand to build and nurture talent pools aligned to their specific needs. These pools can include former employees, silver-medalist candidates, interns, retirees, referrals, redeployed workers nearing assignment completion, and even candidates initially considered for full-time roles. When curated effectively, these communities create a self-reinforcing talent ecosystem that reduces reliance on third-party suppliers while improving fit and engagement.

However, direct sourcing is frequently misunderstood. Many organizations equate it with simple referral management or pre-identified worker tracking, underestimating the operational complexity involved. Successful direct sourcing requires both enabling technology and experienced recruiting services. Technology alone cannot curate talent pools, nurture relationships, or deploy multi-channel attraction strategies. Without skilled recruiters and sourcers who understand how to activate a brand in the market, programs often stall or underperform. This is where the distinction between staffing-aligned and vendor-neutral direct sourcing providers becomes critical. Staffing-affiliated providers face inherent conflicts of interest, as expanding client-branded talent pools can reduce placements from their own candidate queues. Vendor-neutral models, by contrast, are incentivized to prioritize talent outcomes regardless of source, making them better suited to deliver on the full promise of direct sourcing.

Equally important, direct sourcing reframes how organizations think about ROI. While cost savings are significant (often driven by reduced markups and improved retention) the broader value lies in workforce agility. Candidates sourced directly are typically more engaged, onboard faster, and demonstrate better alignment with organizational culture. Over time, these benefits compound, improving productivity and reducing program leakage. Direct sourcing also serves as a bridge between contingent and full-time hiring strategies. Rather than operating in silos, organizations can leverage shared talent pools to support multiple workforce needs. This convergence sets the stage for more advanced workforce models, including total talent management and skills-based hiring, where the focus shifts from job titles to capabilities.

Ultimately, direct sourcing represents a philosophical shift as much as an operational one. It requires organizations to place talent (not transactions) at the center of their workforce strategy. Those that approach it as merely another cost-cutting tactic will miss its transformative potential. But for organizations willing to invest in the right technology, services, and governance, direct sourcing offers a powerful path toward a more resilient, engaged, and future-ready workforce.

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The Future of Work 2026

It’s that weird time at the end of December. We’re all full of extra desserts and treats, no one truly knows what day it is, the kids are on school vacation, and the business emails are piling up. To bring you back into the Future of Work spirit, we’re excited to share an on-demand edition of our annual Future of Work outlook webcast. This year, we were joined by Opptly’s Lori Hock, Beeline’s Doug Leeby, AMS’ Orli Becker, and Airswift’s Janette Marx to chat all things 2025 and look ahead to 2026. Direct sourcing, AI, talent tech, extended workforce management, skills-based hiring, etc…so many topics, so many insights.

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The Future of Work 2026: Predictions for the Year Ahead (Part II)

2025 proved to be a transformational year in the evolution of work and talent. Now, as we enter 2026, the stage is set for another era of profound change in business history. Ardent Partners and the Future of Work Exchange are excited to unveil a new series of predictions from leading industry voices—insights designed to guide strategy, spark innovation, and shape the future of work and talent in the year ahead.

 

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The Future of Work 2026: Predictions for the Year Ahead (Part I)

2025 proved to be a transformational year in the evolution of work and talent. Now, as we enter 2026, the stage is set for another era of profound change in business history. Ardent Partners and the Future of Work Exchange are excited to unveil a new series of predictions from leading industry voices—insights designed to guide strategy, spark innovation, and shape the future of work and talent in the year ahead.

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The State of the Contingent Workforce Market — Why Old Models Are Breaking Down

During a recent FOWX podcast, Christopher Dwyer, senior vice president of research and managing director of the Future of Work Exchange for Ardent Partners, spoke to Orli Becker, executive vice president and managing director of contingent workforce solutions for AMS, Orli Becker, on the impact of direct sourcing, the power of skills-based hiring, how AI is transforming extended workforce management, and more

In part one of our three-part series, we highlight the major discussion points and a link to the full event.

The contingent workforce industry has reached a pivotal inflection point. What was once viewed as a tactical labor solution has evolved into a core component of enterprise workforce strategy, driven by demographic shifts, changing worker preferences, and persistent skills scarcity. As discussed in a recent Future of Work Exchange podcast conversation between Arden Partners’ Christopher Dwyer and AMS EVP Orly Becker, today’s labor market realities are exposing deep cracks in traditional contingent workforce models—particularly long-standing MSP and vendor management approaches that have failed to evolve alongside the workforce itself.

A Labor Market Redefined by Flexibility and Scarcity

At the heart of this disruption is a fundamental change in how workers choose to engage with employers. Stability and long-term tenure, once the gold standard for career success, have given way to flexibility, autonomy, and work-life balance. Younger generations increasingly favor contingent, project-based, or independent work models, while experienced Baby Boomers are exiting the workforce altogether. Compounding this shift are declining global birth rates, which are shrinking the overall labor pool. The result is a persistent imbalance between talent supply and demand, especially for specialized and in-demand skills.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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