My favorite presentation at Staffing Industry Analyst's Executive Forum each year is Barry Asin's kick-off keynote describing the state of the staffing industry. While soaking up his review of what's just happened to us all and his analysis of what's about to hit us, I'm intently listening for how technology might come into play.
Barry shared 2010 SIA Staffing Survey data which showed 46% of those surveyed plan on increasing their technology budgets in 2010. Technology ranked 3rd on the list of priorities, after hiring more sales and recruiting staff. For those of us who are closest to staffing technology, it truly is news to have technology rank so high. Technology reduces operating costs, while allowing companies to scale through automation rather than adding headcount. Now that the temp market is improving, it seems that nearly half of the firms surveyed are ready to invest in technology though they maybe pressed to implement new technologies at the same time business is booming.
Barry also called out that VMS adoption hit 63% in 2009 and is forecasted that, "VMS/MSP adoption among large clients [will reach] saturation" by 2020. By saturation, he meant that VMS adoption could reach "nearly 100%" for the largest hiring companies and noted that VMS will begin to penetrate: smaller firms (floor will move down from $20m to $2m in annual hiring company spend), all types of staffing segments (e.g. light industrial) and all types of staffing engagements (e.g. SOW). He also noted that he expects to see more VMS consolidation.
Barry's 2020 projections were quite interesting. Of course, the best part was where he said the size of the staffing industry would double in the next 10 years - we all like that. He called out that "the next waves of technology innovation [will help] staffing change from "providing people" to "getting work done." He also referenced last year's Exec Forum when one of the keynotes highlighted that wise investments in technology could help staffing firms better defend and grow market share while increasing barriers to entry.
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