Dragon Sourcing analyzed temporary labor trends in Northern and Western Europe, investigating dynamics and supplier ecosystems. In February 2018, our study focused on the temporary staffing services sector. It involved consulting firms and independent contractors in various fields, providing detailed insights into industry nuances.
Valued at USD 404 billion in 2013, the temporary labor market grew to USD 428 billion by 2016, with projections indicating a 6% growth rate in 2018. The industry expands due to evolving client needs for innovative solutions and superior value. Notably, the number of employees on temporary contracts in the European region increased from approximately 24.5 million in 2005 to 26.8 million in 2016. The UK staffing industry is the largest among Germany, Switzerland, Sweden, France, Italy, and Norway. However, it faces an anticipated growth slowdown due to Brexit implications.
The supplier overview revealed 165 suppliers in Germany, Switzerland, and Sweden. The Adecco Group, Randstad Holding NV, and Manpower Group are leading suppliers with extensive country coverage and significant global revenues. This shows the market’s concentrated nature compared to smaller, region-specific players.
Evolution of Procurement Models
The study traced the evolution of the procurement model to the 1990s. It advanced to models like managed service providers (MSPs) and total talent management. The models show a move towards holistic management of contingent workforces. They focus on cost savings, reducing non-compliant spending, and increasing the total cost of ownership.
The case study highlighted various engagement models, including master vendor, vendor neutral, and hybrid. We customize the models to meet specific client needs. Pricing models mainly use markups based on worker types, skills, and market demand. Markups range from 20% to over 50%.
Industry Trends and Insights
Key trends include mergers and acquisitions, the burgeoning gig economy, and technology adoption. Adecco Group’s ‘Adia’ platform shows the sector’s digital shift and provides flexible staffing solutions.
This case study outlines the temporary labor market in Northern and Western Europe. It highlights Dragon Sourcing’s skill in navigating complex industries, which provides valuable insights for stakeholders. The sector changes rapidly, and stakeholders need to make informed decisions.