Benefits of Direct Sourcing (RPO for Contingent)

Why direct sourcing should be integral to your talent management strategy

We here at CXC, have been managing contingent workforces across the globe for almost 30 years. Recruitment has radically changed during that time through developing technologies, increased mobility, the emergence of the global economy, as well as a cultural shift in attitude towards work. We’ve been involved with MSPs, BPOs and RPOs for many years. However, one process we’re constantly recommending to our clients recently is direct sourcing. I’m going to explain why in the coming paragraphs, but to put it simply, it’s cheaper, faster and better. What’s not to like?


Of course, the key advantage of using contingent staff is being able to respond quickly to market changes or react to random business demands, such as ramping up staff or accessing specialised skills when required, without the extra cost and liability of layoffs.

Direct sourcing will give you that flexibility, but with one strategic on-site partner. That partner will exclusively provide a single, private pool of contingency staff from internal and external sources through your vendor management system. Internal resources typically include seasonal workers, interns, current staff, employee referrals and ex-employees. External pools come from a range of sources including staffing suppliers, talent marketplaces and the on-site partner’s freelance management system.


With some of our current clients, we’ve cut costs by up to 40%. Major savings are made by doing away with your current third-party staffing firms where you could be paying fees up to 30%. Especially if you’re recruiting large quantities of the same skillset. In addition, the standardising and streamlining of your contingent sourcing also reduces your HR costs.


In the traditional process for finding contract staff, you’d typically engage with a number of recruitment agencies and wait on them to source, vet and recommend that talent that met your specification. This is frustrating when you’re trying to fill critical positions.

Having immediate access to a wide talent pool can reduce time-to-fill by up to 20%. Your internal team won’t have their time taken up managing and re-engaging contingency workers. It also simplifies the compliance vetting process.

A strong alliance with your direct sourcing partner allows for better pipeline planning and quicker response times to urgent business needs, ultimately more control.


By having one strategic partner on-site, they will have a clearer understanding of your company culture, processes, functions and specific role needs, per department, and hiring manager; subsequently delivering the right fit for the project. They’ll also have a better understanding of how to maximise and protect your employer brand to engage the best talent in the marketplace.

The entire contingent engagement process is completely streamlined and automated, with less points of contact, paperwork and most importantly, a more rigorous compliance mechanism. This frees up the time of your HR staff to focus on other matters, like training & development and employee relations.

It also provides a superior and consistent experience for your contingent workforce themselves, increasing the likelihood of future engagement.


The right people and processes are essential to delivering a successful direct sourcing programme. However, what is equally as crucial and has allowed this form of talent management to flourish, is technology. There are a wide range of talent pool and sourcing solutions now available that can provide visibility not just in one silo, but across your organisation, all captured in analytics and reports.

There are a number of Freelancer Management Systems (FMS) like Freework, Kalo and Shortlist and crowdsourcing technologies including Shiftgig, WorkN, UpWork and WayUp that provide alternative sourcing channels. There are also excellent options for vendor management systems such as Beeline and SoftRecruit. We have worked with many of these platforms and can utilise them to give you the best direct sourcing solution – cheaper, faster and better.

We’d be delighted to have a one-to-one conversation with you if you are interested in finding out how direct sourcing can benefit your organisation.

See how our direct souring solution works in the real world here

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