Direct Sourcing Archives - The Future of Work Exchange

Optimize Your CWM Strategy with AI

Contingent Workforce Direct Sourcing Solution Providers Talent Talent Acquisition Technology and Innovation by John Yuva on 02/20/2025

Artificial intelligence is becoming a permanent fixture as part of today’s enterprise operations and talent management approaches, serving as an essential technology for contingent workforce management (CWM) strategies that streamline candidate pairings with operational needs while increasing transparency of available skillsets and workforce contributions. Whether shoring up talent gaps or scaling needs, AI provides external workforce insights invaluable to HR and recruitment professionals and business leaders. The evolution of artificial intelligence will mean the emergence of more CWM opportunities.

Enterprises and HR executives who are not at least exploring the possibilities of AI’s impact on CWM will find themselves at a competitive disadvantage when sourcing talent and executing extended workforce strategies. Beeline stated that the “effects of AI in extended workforce management are just beginning and can be seen shaping how jobs are described, how candidates are evaluated, and how contracts are written. AI will soon be employed for more strategic outcomes like workforce planning, workforce optimization, and total workforce management.”

AI Paves Several Paths for CWM

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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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Reimagining Contingent Workforce Management: A Strategic Imperative for 2025

Contingent Workforce Direct Sourcing HR Solution Providers Talent Acquisition by Christopher J. Dwyer on 02/03/2025

If I ever want to show my age, all I need to say is this:

I’ve been in the contingent workforce and HR tech space for nearly 20 years.

Now, like most of the folks in our amazing industry, I got here by accident. While I love the CWM space and the many, many friends I’ve made along the way, I didn’t set out to be an in analyst in this arena when I was college. (No, I aspired to be a journalist, a conversation for another day…)

So, I say this seeing so many market-shifting events, including the “perfect storm” of the contingent workforce’s growth spike in 2008-2009, a “reawakening” during the pandemic, and today’s AI-driven, skills-based hiring arena:

The CW programs of today aren’t built for tomorrow….

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thods within extended workforce management.

The New Reality of Total Talent Management

Contingent Workforce Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 01/27/2025

Before you begin to scream, give me a few minutes here. I promise it’s worth it.

There are several phrases that send our industry into huffy-puffy overdrive and cause undue stress. However, no concept, idea, phrase, or whatever draws more scrutiny and frustration than “total talent management.”

Way back in 2012 (which seems like forever ago), I co-authored the industry’s very first paper on total talent management. Back then, with wide eyes and a dreamy attitude, I concluded that “total talent management should not just be a pipe dream for enterprises, but rather an accepted future state that will eventually become the foundation of all recruitment and talent acquisition strategies.”

Yeah, that “eventually” in there…let’s ignore it for a second.

Back then, the extended workforce comprised, on average, 25% of the average company’s total talent pool. Back then, solutions like RPO, MSP, VMS, etc. weren’t evolving or innovating as quickly as they are today. And, back then, we weren’t awash in new and exciting talent acquisition strategies (like skills-based hiring) that are representative of the changing times of a post-pandemic labor market.

So, flash-forward to 2025.

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The 2025 MSP Playbook, Part I

Contingent Workforce Direct Sourcing Events by Christopher J. Dwyer on 01/21/2025

Just last week, I had the opportunity to join Atrium and their Chief Revenue Officer, Brad Martin, for an exclusive webcast focused not only on the 2025 trends that will shape the Future of Work, but also the impact of the Managed Service Provider (MSP) model on those areas in the months ahead. Today’s article is the first of a two-part series that will recap Brad and I’s discussion.

The “Strategic” Contingent Workforce Program: A Major Priority for 2025

Nearly 65% of organizations (as discovered by Ardent Partners and Future of Work Exchange research) state that they plan to develop a more strategic foundation around their contingent workforce programs in 2025. As the extended workforce marches to its 50% threshold (49.7% of the average organization’s total workforce is now considered non-employee), it is critical that businesses take a more deliberate pathway towards managing this type of talent in lieu of leveraging traditional, archaic, and “tactical” approaches that undermine the greater impact of the contingent workforce.

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What’s Your 2025 MSP Strategy?

Contingent Workforce Direct Sourcing General Insights by Christopher J. Dwyer on 01/06/2025

Managed Service Providers (MSP) have long been an extended workforce management powerhouse. The MSP model has long been a cornerstone of contingent workforce management, offering comprehensive solutions for businesses seeking to outsource their staffing operations. However, as the enterprise workforce landscape has undergone significant transformations in recent years, MSPs have evolved to meet these new challenges head-on. Over the past three decades, MSPs have established themselves as the premier and most established solution in the workforce technology and services market.

This begs the question: how are the major trends heading into 2025, such as direct sourcing, AI, and skills-based hiring, for example, changing how businesses leverage MSPs? What goes into an official “playbook” for optimizing utilization of an MSP model?

Ardent Partners and the Future of Work Exchange have teamed up with Atrium for an exclusive webcast focused on major 2025 headwinds within the staffing, HR, contingent workforce, and talent acquisition markets and their impact on the Managed Service Provider model.

I’m thrilled to join Atrium’s Chief Revenue Officer, Brad Martin, for an engaging event that will highlight:

The digitization of talent management. Leveraging AI-driven analytics, automated workflows, and integrated platforms to create a more responsive and intelligent workforce program.
Strategic program design. Building flexible, tailored MSP solutions that align with an organization’s culture, industry challenges, and growth objectives.
The next-generation DE&I initiative. Creating measurable pathways to expand diverse talent channels, eliminate bias in selection processes, and foster inclusive contingent workforce programs.
Reimagining the value of the MSP. Balancing cost efficiency with quality outcomes through data-driven decision making, strategic sourcing, and enhanced supplier partnerships, and;
The link between MSPs and the Future of Work. How do MSPs support Future of Work-driven strategies, such as direct sourcing and skills-based hiring?

Click here or on the image below to register. See you then!

Future of Work 2025: Predictions for the Year Ahead (Part III)

Contingent Workforce Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/20/2024

2024 was another watershed year for the world of work and talent…and 2025 promises to be another transformational period in business history. Ardent Partners and the Future of Work Exchange are excited to unveil a series of predictions over the next few weeks from industry thought leaders.

“In 2025, mid-market companies will increasingly rely on their external workforce to achieve their objectives. This will be the catalyst for staffing’s rebound, with these organizations embracing technology to automate and streamline their processes. For these mid-market companies, speed-to-value is paramount, driving them toward comprehensive technology solutions that offer modern, user-friendly interfaces, and simplified implementation.”

– David Barthel, SVP, Global Sales, Beeline

“We’re going to see a demand increase in skilled labor in the early part of 2025. Industries like manufacturing, LI, and similar verticals are going to peak shortly (some have already have due to seasonal attributes). For IT, engineering, and professional skills, we may not see demand increase until the dust settles on a new presidential administration…possibly in Q3 2025.

In addition, I expect (and we’re already starting to experience) a surge in enterprise RPO activity. Businesses expect an economic rebound and are beginning to put those recruitment pieces in place to prepare for increased hiring next year.”

– Tammy Browning, SVP and President, KellyOCG

“In 2025, businesses will increasingly prioritize workforce agility and compliance as hybrid work models and gig-based talent strategies become the norm. We will continue to see advanced AI-driven analytics playing a pivotal role in helping organizations adapt quickly to evolving workforce dynamics while ensuring cost-efficiency and risk mitigation”

– Kristen McArdle, Senior Vice President, HireGenics

“In 2025, direct sourcing will solidify its position as a critical strategy for workforce management, driven by advancements in technology and shifting workforce dynamics. AI and predictive analytics will enhance the precision of talent matching, while hyper-personalized engagement will improve candidate retention and conversion. As organizations integrate direct sourcing into their workforce planning, branded talent communities will evolve to support contingent and permanent hiring strategies. The global nature of work will also expand these communities across geographies, enabling access to diverse and highly-skilled talent pools while addressing ongoing labor shortages.

Additionally, direct sourcing will play a pivotal role in achieving diversity, equity, and inclusion (DE&I) goals, fostering diverse talent pipelines, and mitigating hiring biases. As the model scales globally, compliance features within sourcing platforms will ensure adherence to complex labor laws and data privacy regulations. Cost optimization pressures will further accelerate adoption as companies look to reduce dependency on traditional staffing models. By leveraging direct sourcing to enhance employer branding, enterprises will create stronger connections with candidates, reinforcing their talent strategies and positioning the model as a critical element of their workforce strategy.”

– Katie Bussey, Direct Sourcing Thought Leader

Future of Work 2025: Predictions for the Year Ahead (Part II)

Contingent Workforce Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/18/2024

“2025 is a year of growth and transition. We will see a seamless integration of technology and human potential as the workforce continues to evolve with the advances in AI.”

– Janette Marx, CEO, Airswift

“Gone are the days of operationally-led MSPs; in 2025, there will be even more of an expectation of “self-service” from enterprises. MSPs will not survive without next-generation technology that can enable self-serve, omni-channel talent acquisition and talent management approaches. This will be critical as skills-based hiring becomes more of a focus for business leaders in 2025. There will be a need for the convergence of self-service functionality, Best-in-Class platforming, and modernized talent community/talent-pooling development.”

– Tammy Browning, SVP and President, KellyOCG

“Clients will start demanding the highest levels of service. They are looking for partners who are in the service business that happens to be technology-enabled. Companies with exemplary service offerings will win!”

– Denise Stalker, SVP, Managed Services, TalentProcure

“I believe in 2025 we are going to see the rapid development of AI coupled with more concrete regulation. I think we can all agree that AI is going to be pivotal in the human capital space and that the hesitancy around adoption because of the unknown will continue to diminish as we understand more about how AI works. I look forward to exploring AI in the extended workforce and will also be interested to see how regulations will come to follow.

Often times with uncertainty we see a rise in extended workforce utilization, but what that looks like I predict will be different than previous years. While, yes, there will likely be an increase in your traditional staff augmentation there will also be increased utilization of outsourced organizations through services procurement as well as increased utilization of talent platforms. This will create challenges in getting a full read of your extended workforce unless you make a conscious effort to consolidate your workforce data into one system.”

– Taylor Ramchandani, VP of Strategy, VectorVMS

“2024 was the year of resilience, and in 2025, the U.S. staffing industry is expected to continue its transformation, driven by technological advancements, changing workforce expectations, and macroeconomic factors. Temporary staffing will likely see a rise in demand due to ongoing flexibility in employment patterns across sectors such as healthcare, IT, and logistics. The healthcare sector, in particular, may experience significant growth, spurred by aging demographics and an ongoing demand for skilled healthcare professionals. Similarly, the IT sector will likely fuel demand for temporary talent to address project-based needs in emerging technologies like AI, cloud computing, and cybersecurity.

Permanent placement and direct-hire services are expected to grow with the rise of hybrid and remote work models, employers may focus on sourcing highly-skilled, geographically-diverse talent. Additionally, executive search is projected to grow as companies prioritize leadership with expertise in navigating digital transformation and sustainability challenges.

One area where we can continue to experience significant growth is the Gig Economy and freelance staffing platforms, using AI-driven platforms to connect employers with niche talent pools, particularly in creative, IT, and technical roles. These trends suggest staffing organizations will thrive if they’re increasingly specialized, technology-driven, and aligned with the needs of a flexible, skills-oriented workforce.”

– Greg Iannuzzi, Director of Client Solutions, Ceipal

Let’s Set the Record Straight on Direct Sourcing

Direct Sourcing Talent Acquisition by Christopher J. Dwyer on 12/09/2024

As you may know, the Future of Work Exchange moved to a subscription format a short time ago. Ordinarily, this article would only be accessible to FOWX subscribers. However, today’s article on direct sourcing will be available to all until midnight on December 16. Given the rampant discussion on direct sourcing and its outlook, direction, etc., the FOWX felt that this piece should be accessible to all readers for a short period. Enjoy!

For nearly 20 years, I’ve seen talent trends, shifts, and “fads” come and go. There is no industry that invites divisiveness like the world of talent and work. Making contingent workforce management less tactical and more strategic was once seen as crazy, yet today the extended workforce comprises 49.8% of the average company’s total talent, and, businesses regularly rely on this top-tier labor to get work done.

Total talent management deserves a major mention, as it still (yes…still) drives executives absolutely nutty on completely opposite sides of the spectrum: it’s either the wave of the future, or, it’s a pipe dream mired in conjecture and theory. (My take: there’s incredible value in elements of total talent management, particularly total talent intelligence. The ability to make snap worker decisions based on information and data on your total talent resources is the real benefit of any total talent management strategy/program.)

Direct sourcing has reached a similar level of conjecture, and, rightfully so: since the waning days of pre-pandemic times, “direct sourcing and talent pools” have routinely been a top-three workforce strategy, according to Ardent Partners and Future of Work Exchange research. Furthermore, during the pandemic, direct sourcing emerged as a viable, flexible strategy for businesses that 1) wanted to scale up or down based on rollercoaster-like market conditions, 2) keep those laid off during the worst of the pandemic engaged with the organization and cultivated within an easily-recruitable talent community, 3) wanted to maintain their brand (and keep it front-and-center) in front of potential candidates, 4) support burgeoning skills-based hiring efforts, and, 5) desired to centralize their total talent resources and available skills.

There is no question today regarding the value of direct sourcing; we all realize what it can do, what it can generate, etc. The real quandary (and it’s a painful one, given the discourse on social channels liked LinkedIn) is this: how does direct sourcing actually work?

There are several schools of thought here. The simplest explanation is that an enterprise can leverage its own talent acquisition and contingent workforce teams to create an internal “recruitment agency” that blends branded job portals, curation (internally-led or outsourced), and marketing-fueled engagement with VMS or ATS technology (for sourcing and management) and EOR (for payrolling and compliance) for workforce management. Add in some level of automation to place current contractors, contingent workers, retirees, alumni, silver medalists, etc. into talent pools, and, boom, a direct sourcing program is born.

This very non-intricate approach thrives on simplicity: engage candidates, curate them, and provide internal TA and recruitment teams with access to these workers. The past several years has seen a shift, however, in how direct sourcing is approached. Deeper automation, specific functionality offered by direct sourcing platforms, a sharper focus on skills-based hiring, more attention on the marketing/brand aspects, and the power of artificial intelligence are all transforming what direct sourcing truly means today in 2024.

Here’s where some of the scuttlebutt meanders and gets us to a point of “theory vs. reality” within the direct sourcing discussion. Do businesses really need point direct sourcing platforms? Is there a real role for AI? Is there even a true DEFINITION for direct sourcing? Where does VMS fit in? Is it true that direct sourcing technology is just next-gen ATS? And, finally, does direct sourcing have a place within the contemporary extended workforce program?

Let’s tackle these one-by-one, because that’s just how we do things here at FOWX.

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The FOWX Fifteen: AMS.

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/03/2024

The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.

The Background

The talent technology industry is awash in innovation. Whether it’s AI-fueled functionality, next-generation managed services, or progressive workforce management capabilities, there is no better or more ideal time to be a talent acquisition, HR, or extended workforce leader than right now.

A talent-centric, candidate-oriented world of work means that enterprises require a level of elegance, automation, and efficiency to effectively maximize new and exciting hiring strategies. Progressive concepts such as direct sourcing, digital recruitment, skills-based hiring, and Best-in-Class talent technology stacks are all elements that now fuel the Future of Work movement.

Enter AMS.

Why They Were Selected

AMS was purpose-built for the Future of Work, with an impressive arsenal of talent acquisition and workforce management services, all buoyed by the powerful AMS One platform. AMS One comprehensively streamlines workforce (traditional and extended) management through integrated digital capabilities, seamlessly enabling comprehensive recruiting, hiring, engagement, and operational (scheduling, workforce planning, payment processing, and reconciliation) functions within a unified suite of functionality.

Furthermore, AMS stands as a robust service provider that impeccably blends MSP, RPO, talent acquisition, and direct sourcing solutions together in an sophisticated, cohesive manner. The company’s Best-in-Class recruitment-driven offerings are anchored in global talent expertise and an innovative service delivery model that prioritizes forward-thinking talent strategies and approaches. And, with progressive solutions like the DE&I gamechanger AMS Omnis, AMS continues to thrive in an evolving world of work.

In Their Own Words

“AMS is honored to be named a global leader by Ardent Partners and the Future of Work Exchange, reflecting our unique ability to drive transformative talent acquisition outcomes. As a trusted partner to some of the world’s most well-known organizations worldwide, we deliver comprehensive talent solutions—across MSP, RPO, direct sourcing, talent advisory, and digital solutions—all powered by cutting-edge technology and a relentless focus on innovation.

Today’s talent landscape is rapidly evolving, with a growing need for agile external workforce strategies. Our capabilities enable TA and HR leaders to adapt swiftly to this shift, helping companies leverage their brand to attract, engage, and retain critical talent on a global scale. Our award-winning solutions, like AMS One, combine deep domain expertise, data-driven insights, and advanced AI to optimize strategic talent initiatives. This accolade reinforces AMS’s commitment to empowering organizations to build high-performing teams and unlock new value through the external workforce. As the Future of Work unfolds, we’re here to ensure our clients stay ahead embracing change.” –Christoph Niebel, Chief Client Officer and President, Americas

The Outlook

AMS is positioned as a Future of Work-driven, talent-oriented, and innovation-heavy workforce solutions stalwart, seamlessly transforming talent acquisition through total talent intelligence and digitized hiring optimization. By converging advanced AI-powered functionality with agile direct sourcing and recruitment methodologies, AMS will continue to empower organizations to navigate the complex talent ecosystem with unprecedented, strategic precision.

The FOWX Fifteen: Opptly

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 11/22/2024

The Background

Quick…name the most electrifying word in today’s business landscape. I’ll give you 10 seconds. Wait, you didn’t even need 10 seconds, did you?

“Artificial intelligence” rolls off your tongue faster than a machine learning algorithm processes data..and for good reason: AI has become the cornerstone of innovation, seamlessly weaving through enterprise ecosystems – from the intricate networks of IT and analytics to the strategic realms of finance and talent acquisition.

Recent groundbreaking research from Ardent Partners and Future of Work Exchange reveals a transformative landscape: an overwhelming 82% of businesses entered 2024 with a strategic mandate to amplify their artificial intelligence capabilities. Even more revealing? Among HR and talent acquisition leaders, that number skyrockets to nearly 95% – a clear signal of a profound technological revolution.

This isn’t just about technological adoption, though; it’s about a fundamental reimagination of talent strategy. AI represents more than a tool – it’s a strategic accelerant that empowers talent leaders to transcend traditional boundaries. By harnessing next-generation analytics, organizations can now dynamically map, find, and engage talent, while simultaneously building robust, forward-looking skills taxonomies that don’t just predict the Future of Work – they actively shape it.

Enter Opptly.

Why They Were Selected

Opptly’s core offerings revolve around progressive functionality within direct sourcing, candidate engagement, skills-based hiring, and skills taxonomy development. However, the platform is so much more than the sum of these attributes, as the solution is a true “people technology” that is actively blazing a path forward within the Future of Work movement.

The proprietary and future-leaning artificial intelligence-driven technology within the Opptly platform represents the veritable future of AI in talent acquisition. Opptly’s advanced AI offerings seamlessly match the best talent with mission-critical opportunities by analyzing deep professional insights, skills, expertise, and project requirements in real-time, all while factoring in progressive candidate elements such as culture, diversity, etc.

Through sophisticated machine learning algorithms and NLP-augmented functionality, Opptly optimizes the entire talent lifecycle – from sourcing and vetting to engagement and project success – delivering unparalleled efficiency and precision in the direct sourcing, talent acquisition, and workforce management ecosystems.

In Their Own Words

“Opptly is proud to be included amongst other Best-in-Class platforms and solutions in the talent technology arena. This accolade is a testament to our unwavering commitment to truly unbiased artificial intelligence that can revolutionize the ways businesses find, engage, and manage their total talent. Opptly represents the future of hiring – where cutting-edge technology meets human potential, creating a seamless, intelligent, and equitable dynamic that transforms how organizations and talent connect, collaborate, and succeed.” – Lori Hock, CEO of Opptly

The Outlook

Simply put, Opptly is a pure technological representation of the Future of Work movement: next-generation functionality, AI-fueled talent innovation, and cutting-edge, skills-based hiring offerings that are actively revolutionizing the ways businesses address how work is done. As artificial intelligence continues to dominate talent acquisition strategies, Opptly and its progressive AI sophistication will continue to help enterprises dynamically adapt to modern workforce trends, seamlessly match top-tier talent with critical opportunities, transform their talent strategies, and provide an intelligent and infinitely scalable competitive advantage.