Looking out: the rise of the external workforce and its impact on internal functions

As organisations look to recover in the [COVID-19] pandemic's aftermath, digital transformation is expanding opportunities for companies to make changes to their operating models. In turn, this process is allowing them to leverage the benefits of an external workforce through remote and hybrid work structures. Growing dependence on the external workforce is among the most important drivers for digital transformation in companies, according to an Economist Impact survey - picked as a top-three driver by 24.5 per cent of respondents.

Organisational operating models are faced with a pivotal moment catalysed by the disruptions of the past two years, from [Coronavirus Disease 2019] COVID-19 and supply chain upheavals to a range of geopolitical developments. Company leaders are no longer waiting for these problems to simply vanish; instead, they are proactively taking steps to mitigate risk and create value. Many organisations are expanding their external workforce as a way of navigating this changing business environment.

What does this mean for procurement strategically? And how do these changes shape the relationship between procurement and the rest of the organisation? This report is the culmination of surveying 430 C-level executives on the changing trends in procurement during January and February 2022 and the accompanying research and interview programme of practitioners and subject-matter experts. [The survey] found that 50 per cent of the surveyed organisations globally plan to increase their use of external workers. In comparison, only a fifth (19.7 per cent) of companies said they planned a reduction, underscoring how rapidly organisational models and set-ups can be expected to change.

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