VMS Trends
Aberdeen research reveals that 72% of US companies indicate they have a singular program for the management of contract labor and professional services sourcing and procurement. This is amazing proliferation since VMS software has only been around for about ten years. This proves, like everything else in a broadband world, the Industry (Maturity) Life Cycle for the VMS market is on an accelerated curve.
Although the industry is still in the latter phase of the growth stage, vendors should be aware of the symptoms that indicate the arrival of the industry decline, such as when: A) competitive pressures force MSP/VMS margins to weaken; B) there is a rash of competitor consolidation via merger, acquisition or abandonment; C) sales expansion within the existing customer base is dramatically reduced; and D) sales volume to new customers in the US decline.
Once customers have realized the initial benefits of gaining control and managing their contingent labor workforce, there will be efforts towards continuous improvement -- to include cost reductions as well as analysis of what other indirect spend categories can be expanded. Opportunities for VMS providers include project-based spend, independent contractors, and professional services, among others.
Read more about this topic: Vendor Management System
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