Global Contingent Labor Management Software Market Size By Type (Cloud Based, On-Premise), By Application (BFSI, IT and Telecommunications, Healthcare, Retail and Consumer Goods), By Geographic Scope And Forecast

Contingent Labor Management Software Market Size And Forecast

Contingent Labor Management Software Market size was valued at USD 3.1631 Billion in 2024 and is projected to reach USD 7.211 Billion by 2031, growing at a CAGR of 10.85 % during the forecast period 2024-2031.

The main driver of market expansion is the rise in demand for contingent labor management software among businesses. Innovative products, abundant raw materials, and increased consumer disposable income are further factors that support market expansion. The Global Contingent Labor Management Software Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors playing a substantial role in the market.

Global Contingent Labor Management Software Executive Summary

Contingent Labor Management Software (CLMS) is a complete and sophisticated software system developed to manage and optimize an organization’s contingent labor. Temporary workers, independent contractors, freelancers, and other types of non-permanent employees who work on a project-by-project and short-term basis comprise the contingent workforce. CLMS is a centralized platform that allows businesses to manage the whole contingent labor lifecycle, from procurement and recruiting through onboarding, time recording, payroll, conformity, as well as off boarding.

Companies that encounter seasonality, uneven swings in their workforce, or economic fluctuations may benefit from contingent labor. Because of the critical flexibility of external labor, a firm may swiftly scale up or down according to its circumstances. According to SAP, research performed jointly with Oxford Economics demonstrates that external workers can assist organizations in achieving a wide variety of business objectives, including cost management (73%), organizational agility (64%), as well as risk management (64%), all of which are critical features for business resiliency, particularly in uncertain economic times.

CLMS functions as a talent acquisition and management system, assisting in discovering and recruiting contingent employees with specialized skills and knowledge needed for specific projects or tasks. It collaborates with multiple talent acquisition pathways, including staffing agencies, freelancing platforms, as well as job boards, to find the best people for the organization’s requirements. CLMS improves the recruiting process, enabling HR and procurement teams to examine and choose applicants, manage contracts, and negotiate terms and prices with more efficiency.

CLMS promotes better communication and coordination among HR, procurement, management, and temporary employees. The program offers a centralized platform for communication, sharing of documents, and work assignment, enabling seamless cooperation and increasing efficiency among permanent and contingent team workers. Additionally, CLMS improves the method of off boarding for contingent personnel, providing a smooth transfer after the project or assignment concludes. It enables firms to retain significant data and insights from their contingent workforce by facilitating departure interviews, contract termination, and knowledge transfer.

CLMS is an all-encompassing solution that optimizes contingent labor management by handling the whole lifecycle from recruiting to off boarding. CLMS enables organizations to make informed choices, increase compliance, save expenses, and boost productivity and cooperation by centralizing data and procedures. As contingent labor remains an essential component of modern enterprises, CLMS becomes an integral tool for successfully managing and using this adaptable and necessary workforce.

Global Contingent Labor Management Software Market Attractiveness Analysis

The Contingent Labor Management Software Market is experiencing a scaled level of attractiveness in the North America region. The North America region has a prominent presence and will account for a significant market share by 2030. Individuals who are not regular employees but work on a temporary or contract basis, such as freelancers, consultants, and temporary personnel, are examples of contingent workers. Because of the expansion of the gig economy, remote work, and the need for organisations to be more flexible in their workforce management, the sector is enjoying consistent growth. Many businesses are turning to contingent labor to accommodate variable demand and fill specific skill shortages at a low cost. To expedite the whole hiring and administration process, contingent labor management software is frequently connected with other HR and vendor management systems. This integration improved cooperation and visibility across permanent and contingent employees.

Global Contingent Labor Management Software Market Outlook

The gig economy is becoming more common. This is in terms of both the number of people who are now employed in this manner and the organizations that rely on contingent labor. The gig economy has emerged as a powerful force in the world of work in recent years. In recent years, the gig economy has emerged as a formidable force in the world of work. The gig economy is a labor market subset distinguished by the widespread use of short-term contracts or freelance work as opposed to full-time, salaried employees. In a nutshell, it’s referred to as “gig work” by many. Gig work has fundamentally changed the way businesses operate, and businesses must adapt to the changes it has brought. Otherwise, they risk losing market share or, worse, going out of business.

The issue of contingent labor is especially timely given current market and regulatory conditions. Because of the dynamic nature of market conditions and the talent market, organizations are rapidly increasing their use of contingent workers in order to respond quickly as market conditions change and to help secure talent that would otherwise be difficult to source. Furthermore, the global regulatory environment is becoming more stringentgovernments are investing more in regulatory and investigative efforts to crack down on companies that may be improperly categorizing workers for tax purposes or exploiting the “grey space” in labor regulations. Hiring contingent workers has its drawbacks.

The rise of freelance, flexible, and contract laborers as a share of the overall workforce is a significant trend in today’s increasingly hybrid workplace. Companies using contingent workers can move quickly and take calculated risks, enabling them to differentiate themselves as they scale in a competitive business environment. These workers enable innovative leaders to think big by piloting new initiatives before fully committing. They can also quickly upskill a department, bringing critical outside expertise to help a company carve out or maintain its competitive advantage. With the growing popularity of the remote workforce, businesses can broaden the global scope of their talent searches, attracting the best and brightest from underserved labor markets to create a diverse, highly skilled, and flexible workforce. Companies can assess and connect with this larger pool of talent using deep reservoirs of real-time data and best-in-class talent intelligence solutions. The industry of Contingent Labor Management Software has seen a significant shift towards AI, which has far-reaching implications for organizations and their business processes. Employees are changing jobs more frequently in the twenty-first century, and lifelong employment is becoming obsolete. The convergence of AI and contingent labor is also growing. Because of globalization, demographics, and technological advancement, contingent workforces are rapidly growing, posing challenges for human resource (HR) functions. AI integration with technologies has the potential to open up a plethora of new opportunities for businesses. AI has become an indispensable tool in cost-cutting, fast data analysis, quick decision-making, quality control performance, compliance and risk, total talent management, forecasting and demand, scheduling, and multichannel sourcing.

Global Contingent Labor Management Software MarketSegmentation Analysis

The Global Contingent Labor Management Software Market is segmented on the basis of Type, Application, and Geography.

Contingent Labor Management Software Market, By Type

• Cloud Based
• On-Premise

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Based on Type, the market is segmented into Cloud-based, and On-Premise. The Cloud Based accounted for the largest market share of 73.25% in 2022 and is projected to grow at the highest CAGR of 11.92% during the forecast period. Cloud-based software is a software company that offers solutions for remotely managing applications and information. It provides improved productivity, adaptability, cost-effectiveness, and usability advantages. Cloud-based services’ main advantage is the need for more capital investment in the physical facilities needed to deliver the solution. Cloud-based CLMS are often subscription-based, which means that organizations only pay for the services they utilize. Because no significant upfront capital investments are required, it is a cost-effective choice for enterprises of all sizes. The setup procedure is expedited with cloud-based CLMS, and customers may begin using the system right away. This quick deployment guarantees that organizations may reap the advantages of the software without experiencing severe delays.

Contingent Labor Management Software Market, By Application

• BFSI
• IT and Telecommunications
• Healthcare
• Retail and Consumer Goods
• Manufacturing
• Energy & Utilities
• Government & Defense
• Others (Media, Travel & Tourism)

Based on Application, the market is segmented into IT & Telecom, BFSI, Life Science, Healthcare, Retail and Consumer Goods, Manufacturing, Energy & Utilities, Government & Defense, Others (Media, Travel & Tourism). IT & Telecom accounted for the largest market share of 25.78% in 2022, and is projected to grow at a CAGR of 12.55% during the forecast period. Contingent employees are becoming an increasingly significant portion of the workforce in the IT and telecommunications industries. Organizations in these areas are increasingly hiring contingent workers on an assignment or short-term basis for a few months to a few years. This fixed-term period allows the administration to evaluate talents and determine if contingent workers meet the company’s needs before recruiting permanently. Tech organizations frequently demand the use of a diverse spectrum of expertise in many areas of operation. Utilizing a contingent workforce enables IT organizations to engage experts with the necessary competence while avoiding a long-term financial commitment. These are the primary variables expected to drive the demand for contingent labor workforce management software throughout the study period.

Contingent Labor Management Software Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

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On the basis of regional analysis, the Global Contingent Labor Management