Mitigate risk when managing contingent labor and service providers
Key findings from a 2024 Economist Impact study. It highlights how leading organizations are leveraging contingent workers and service providers to increase flexibility, reduce costs, and address talent gaps. Download dokumentetMitigate risk when managing contingent
labor and service providers
A groundbreaking research study from Economist Impact demonstrates that leading companies
are increasing their use of contingent labor and service providers to reduce business risk:
However, contingent labor and statement of work (SOW)
workers* introduce other types of risk, such as:
How the contingent workforce reduces organizational risk
Each risk must be properly
managed and mitigated to
avoid playing a dangerous
game of risk whack-a-mole.
Offloading these risks and responsibilities
isn’t an option. Regardless of how they
are sourced, contingent and SOW workers
are granted access to company facilities,
systems, and data. If issues arise, your
company can experience significant impact.
“Flexible futures: Navigating the evolving external workforce,” Economist Impact, June 2024.
Ryan Roslansky, “Talent Management in the Age of AI,” Harvard Business Review, December 2023.
“Across the procurement-verse: Changing trends in the procurement function,” Economist mpact, May 2024.
95235enUS (25/04) © 2025 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms, disclamers, disclosures, or restrictions related to this material.
1.-3., 7.
4.-5.
6.
Discover the six primary risks
to mitigate when managing
contingent and service labor.
Read the whitepaper
53%
36% 36% 22%
13%
19%
21%
Fewer legal and
financial obligations
Companies face fewer legal
and financial obligations
when using contingent workers
compared to permanent
employees (where layoffs
involve severance and legal
hurdles in certain countries). 3
This simplifies workforce
restructuring and enables
rapid adjustments to
operations in response
to changing needs.
Addressing short-term
internal skills/talent gap
Organizations must act fast to
plug skills gaps. This is not a
simple feat, as skill
requirements have changed by
25% each year over the past
eight years,4 and demand for
new skills is forecast to grow
up to 65% per year by 2030
due to AI advancements.5
Lower costs
Monetary uncertainty is the
#1 risk organizations face. 6
Greater innovation
and adoption
Addressing
permanent internal
skills/talent gap
Lower turnover rate
Increased agility
The contingent workforce
gives companies greater
flexibility to cope with
uncertainty and volatility.
of companies plan to increase
their use of contingent labor
and service providers.1
of executives have poor
visibility of their contingent
and service labor. 7
of companies’ total budgets is
currently spent on contingent
labor and service providers.2
Avoiding breaches in
data privacy and
proprietary information
Ensuring all workers have
the right skills and proper
training for their roles
Complying with
labor regulations
*Workers sourced through service providers
And much
more...
Controlling
quality
92% 35%
Up to
41%
labor and service providers
A groundbreaking research study from Economist Impact demonstrates that leading companies
are increasing their use of contingent labor and service providers to reduce business risk:
However, contingent labor and statement of work (SOW)
workers* introduce other types of risk, such as:
How the contingent workforce reduces organizational risk
Each risk must be properly
managed and mitigated to
avoid playing a dangerous
game of risk whack-a-mole.
Offloading these risks and responsibilities
isn’t an option. Regardless of how they
are sourced, contingent and SOW workers
are granted access to company facilities,
systems, and data. If issues arise, your
company can experience significant impact.
“Flexible futures: Navigating the evolving external workforce,” Economist Impact, June 2024.
Ryan Roslansky, “Talent Management in the Age of AI,” Harvard Business Review, December 2023.
“Across the procurement-verse: Changing trends in the procurement function,” Economist mpact, May 2024.
95235enUS (25/04) © 2025 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms, disclamers, disclosures, or restrictions related to this material.
1.-3., 7.
4.-5.
6.
Discover the six primary risks
to mitigate when managing
contingent and service labor.
Read the whitepaper
53%
36% 36% 22%
13%
19%
21%
Fewer legal and
financial obligations
Companies face fewer legal
and financial obligations
when using contingent workers
compared to permanent
employees (where layoffs
involve severance and legal
hurdles in certain countries). 3
This simplifies workforce
restructuring and enables
rapid adjustments to
operations in response
to changing needs.
Addressing short-term
internal skills/talent gap
Organizations must act fast to
plug skills gaps. This is not a
simple feat, as skill
requirements have changed by
25% each year over the past
eight years,4 and demand for
new skills is forecast to grow
up to 65% per year by 2030
due to AI advancements.5
Lower costs
Monetary uncertainty is the
#1 risk organizations face. 6
Greater innovation
and adoption
Addressing
permanent internal
skills/talent gap
Lower turnover rate
Increased agility
The contingent workforce
gives companies greater
flexibility to cope with
uncertainty and volatility.
of companies plan to increase
their use of contingent labor
and service providers.1
of executives have poor
visibility of their contingent
and service labor. 7
of companies’ total budgets is
currently spent on contingent
labor and service providers.2
Avoiding breaches in
data privacy and
proprietary information
Ensuring all workers have
the right skills and proper
training for their roles
Complying with
labor regulations
*Workers sourced through service providers
And much
more...
Controlling
quality
92% 35%
Up to
41%